Laxmi Dental Limited, a prominent player in the dental products industry, has launched its Initial Public Offering (IPO) today, January 13, 2025. The IPO is open for subscription until January 15, 2025. The company has set a price band of ₹407 to ₹428 per equity share, with a lot size of 33 shares. This means that investors can bid for a minimum of 33 shares and in multiples thereof, requiring a minimum investment of ₹14,124.
Key Details of Laxmi Dental IPO:
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- Issue Size: The IPO comprises a fresh issue of 32,24,299 equity shares and an Offer for Sale (OFS) of 1,30,85,467 shares, totaling up to ₹698.06 crore at the upper price band.
- Price Band: ₹407 to ₹428 per share.
- Lot Size: 33 shares per lot.
- IPO Dates: January 13, 2025, to January 15, 2025.
- Listing Date: Shares are expected to be listed on January 20, 2025, on both BSE and NSE.
Company Overview:
Established in July 2004, Laxmi Dental Limited is India’s only end-to-end integrated dental products company. The company offers a comprehensive portfolio, including custom-made crowns and bridges, clear aligners, thermoforming sheets, and pediatric dental products. With six manufacturing facilities across India and a presence in over 90 countries, Laxmi Dental has established a robust network serving more than 22,000 clinics and dentists across 320 cities in India.
RR Finance :
Financial Performance:
Laxmi Dental has demonstrated strong financial growth in recent years:
- Revenue Growth: The company’s revenue increased from ₹138.07 crore in FY22 to ₹195.26 crore in FY24.
- Profitability: After incurring net losses in FY22 and FY23, primarily due to depreciation costs, the company achieved a positive EPS of ₹5.11 in FY24. In the first six months of the current fiscal year, the company has already matched this EPS, indicating impressive performance.
Grey Market Premium (GMP):
As of January 13, 2025, Laxmi Dental’s shares are commanding a GMP of ₹160, indicating a 37.38% premium over the upper issue price of ₹428. This suggests strong investor interest and positive market sentiment towards the IPO.
Use of Proceeds:
The net proceeds from the fresh issue will be utilized for:
- Debt Repayment: Reducing the company’s debt obligations.
- Capital Expenditure: Funding capital expenditure requirements.
- Investment in Subsidiary: Investing in its subsidiary, Bizdent Devices Pvt Ltd.
- General Corporate Purposes: Supporting other corporate needs.
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Should You Subscribe?
Investing in an IPO requires careful consideration of various factors. Here are some points to consider regarding Laxmi Dental’s IPO:
Strengths:
- Market Leadership: As India’s only integrated dental products company, Laxmi Dental holds a significant position in the market.
- Diverse Product Portfolio: The company’s wide range of products caters to various segments of the dental industry.
- Global Presence: With exports to over 90 countries, Laxmi Dental has a strong international footprint.
- Financial Turnaround: The company has shown a positive shift towards profitability in recent years.
Risks:
- Competitive Industry: The dental products market is competitive, with both domestic and international players.
- Dependence on Technology: Advancements in dental technology require continuous innovation and adaptation.
- Regulatory Challenges: Operating in multiple countries exposes the company to various regulatory environments.
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Conclusion:
Laxmi Dental’s IPO presents an opportunity to invest in a leading company within the dental products industry. The strong GMP indicates positive market sentiment, and the company’s financial turnaround adds to its appeal. However, potential investors should carefully assess their investment goals, risk tolerance, and conduct thorough due diligence before making a decision. Consulting with a financial advisor is recommended to ensure alignment with your investment strategy.
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