Laxmi Dental is India’s only end-to-end integrated dental products company as at September, 2024. Their offerings include custom-made crowns and bridges, branded dental products such as clear aligners, thermoforming sheets and aligner related products as a part of aligner solutions, and paediatric dental products.

Laxmi Dental, an Book Built Issue amounting to ₹ 698.05 Crores, consisting an Fresh Issue of 32.24 Lakh Shares worth ₹ 137.99 Crores and an Offer for Sale of 130.85 Lakh Shares totaling to ₹ 560.05 Crores. The subscription period for the Laxmi Dental IPO opens on January 13, 2025, and closes on January 15, 2025. The allotment is expected to be finalized on or about Thursday, January 16, 2025, and the shares will be listed on the BSE & NSE with a tentative listing date set on or about Monday, January 20, 2025.

The Share price band of Laxmi Dental IPO is set at ₹ 407 to ₹ 428 per equity share. The Market Capitalisation of the Laxmi Dental Limited at IPO price of ₹ 428 per equity share will be ₹ 2,352.37 Crores. The lot size of the IPO is 33 shares. Retail investors are required to invest a minimum of ₹ 14,124, while the minimum investment for High-Net-Worth Individuals (HNIs) is 15 lots (495 shares), amounting to ₹ 2,11,860.

NUVAMA WEALTH MANAGEMENT LIMITED, MOTILAL OSWAL INVESTMENT ADVISORS LIMITED and SBI CAPITAL MARKETS LIMITED are the book running lead manager of the Laxmi Dental IPO, while MUFG INTIME INDIA PRIVATE LIMTIED (FORMERLY KNOWN AS LINK INTIME INDIA PRIVATE LIMITED) is the registrar for the issue. 

Laxmi Dental Limited IPO GMP Today
The Grey Market Premium of Laxmi Dental Limited IPO is expected to be ₹ 100 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

Laxmi Dental Limited Day Wise IPO GMP Trend

Date	IPO Price	Expected Listing Price	GMP	Last Updated
09 January 2025	₹ 428	₹ 528	₹ 100 (24.51%)	02:00 PM; 09 Jan 2025

Laxmi Dental Limited IPO Live Subscription Status Today: Real-Time Update
As of 07:00 PM on 15th January, 2025, the Laxmi Dental IPO live subscription status shows that the IPO subscribed 114.42 times on its Final day of subscription period. Check the Laxmi Dental IPO Live Subscription Status Today at BSE.

Laxmi Dental IPO Anchor Investors Report
Laxmi Dental has raised ₹ 314.12 Crores from Anchor Investors at a price of ₹ 428 per shares in consultation of the Book Running Lead Managers. The company allocated 73,39,395 equity shares to the Anchor Investors. Check Full List of Laxmi Dental Anchor Investor List.

Note:- Equity Shares allotted to Anchor Investors (if any) are allotted from Qualified Institutional Buyers (QIBs) reservation portion.
Note:- The Number of shares offered shown IPO subscription section table is calculated at the lower end of the price band and Number of shares calculated in IPO details table section is calculated at upper end of the price band in case of Book Building Issue, so there can be difference. This is because we assume shares will be issued by the company at upper band as Anchor Investors also subscribe at upper band and shares will be issued at lower band only if in case of undersubscription of IPO.
Note:- Market Maker portion (if any) are not shown separately in subscription table and included in NIIs reservation portion

Laxmi Dental Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online
Laxmi Dental IPO allotment date is 16 January, 2025, Thursday. Laxmi Dental IPO Allotment will be out on 16th January, 2025 and will be live on Registrar Website from the allotment date. Check Laxmi Dental IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Laxmi Dental Limited IPO from the dropdown list of IPOs
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of Laxmi Dental Limited IPO
Laxmi Dental proposes to utilise the Net Proceeds towards the following objects: 
1. ₹ 229.84 Million is required for Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Company.
2. ₹ 46.00 Million is required for Investment in certain Subsidiaries for the repayment/prepayment, in full or in part, of certain outstanding borrowings.
3. ₹ 435.07 Million is required for Funding the capital expenditure requirements for purchase of new machinery for the Company. 
4. ₹ 250.04 Million is required for Investment in their Subsidiary, Bizdent Devices Private Limited, for the capital expenditure requirements for the purchase of new machinery. 
5. General corporate purposes.

Refer to Laxmi Dental Limited RHP for more details about the Company.

Check latest IPO Review & analysis, Live IPO GMP today, Live IPO Subscription Status Today, Share Price, Financial Information and other details before applying in the IPO.

The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms and Laxmi Dental.

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About Laxmi Dental Limited

BUSINESS OVERVIEW

Laxmi Dental is India’s only end-to-end integrated dental products company as of September 2024, offering a comprehensive portfolio that includes custom-made crowns and bridges, clear aligners, thermoforming sheets, aligner-related products, and pediatric dental solutions. With over 20 years of experience, the company ranks among the top two largest Indian dental laboratories based on revenue for Fiscal 2024 (Source: F&S Report). It is the largest and most profitable vertically integrated indigenous B2B2C dental aligner solutions company (Fiscal 2023). The company operates six manufacturing facilities spanning 147,029.63 sq. ft., with compliance to US FDA quality system regulations and ISO 13485:2016 certifications.

Laboratory Offering
The Indian market for custom-made crowns and bridges is projected to grow from USD 1.4 billion in 2023 to USD 3.1 billion in 2030 at 11.8% CAGR, outpacing the global growth rate of 8.0% (Source: F&S Report). Laxmi Dental is the largest exporter of custom-made dental prostheses in India for Fiscal 2023, catering to markets in the US and UK. Key products include Illusion Zirconia crowns, porcelain-fused-to-metal (PFM) crowns, and dentures. Metal-free products contributed 53.70% of domestic revenue and 36.31% of international revenue for Fiscal 2024.

The introduction of iScanPro intraoral scanners in August 2024 and advancements in digital dentistry contributed to 48.61% of domestic restoration units and 55.48% of international units in Fiscal 2024.

Aligner Solution
The Indian clear aligner market is projected to grow at a 23.0% CAGR from USD 133.6 million in 2023 to USD 569.0 million in 2030, significantly faster than the global growth rate of 15.0% (Source: F&S Report). Laxmi Dental's Illusion Aligners were the first Indian brand to receive US FDA 510(k) clearance in 2021. Employing a B2B2C model, the company leverages its Dental Network of over 22,000 clinics and dentists to deliver aligner solutions across metropolitan and non-metropolitan cities.

Pediatric Dental Product
The Indian pediatric dental crown market is expected to grow from USD 63.9 million in 2023 to USD 164.8 million in 2030 at 14.5% CAGR (Source: F&S Report). Through Kids-E-Dental LLP, a Jointly Controlled Entity, Laxmi Dental leads in manufacturing US FDA-cleared Silver Diamine Fluoride (SDF) and pre-formed metal-free pediatric crowns, including the proprietary "Bioflx" semi-flexible tooth-colored crowns distributed globally across 81 countries.

As on September 30, 2024, the Company's sales and marketing strategies are implemented by a marketing team of 50 employees and an on-ground sales team consisting of 318 employees. The Bankers to th Company is ICICI Bank Limited.

INDUSTRY ANALYSIS

INDIAN HEALTHCARE LANDSCAPE
Healthcare has been an underpenetrated segment historically but with rising levels of disposable income in comparison to peers and heightened post-pandemic awareness of superior health management, focus on healthcare is growing, leading to increased discretionary spending on the segment.

In India, the proportion of the old has been rising quickly in recent years, and this trend is probably going to continue in the decades to come. It is anticipated that the proportion of the population over 65 will rise from 10.5 percent in 2022 to 20.8 percent in 2050. The elderly will make up more than 36% of the nation's population by the end of the century.14 With an aging population and increased life expectancy, the need for health care specialized services such as nutritional services, chronic health services, dental services, and home care services is expected to have a larger role. The aging of the population increases the prevalence of acute and chronic illnesses and drives healthcare consumption, including dentistry.

India’s CHE as a percentage of GDP is a mere 3.3%, which is very low compared to developing and other Asian peers, implying huge scope for affordable healthcare products and services. Compared to global economies, healthcare expenditure has been historically low in India because of high dependence on Out-of-Pocket (OOP) expenditure and the under-penetration of healthcare and ancillary services. However, as private insurance coverage increases, government insurance schemes such as Ayushman Bharat widen and strengthen the overall healthcare expenditure, which is expected to increase further. The early signs of the impact of ongoing changes are already evident from declining dependence on OOP. India’s Current Healthcare Expenditure (CHE) per Capita has increased from US$ 57 in 2014 to US$ 74 US$ in 2021 at a CAGR of 3.9%.

India is witnessing increasing healthcare financing from the government. A pivotal government initiative, the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), provides comprehensive hospitalization coverage to approximately 70 crore individuals, or the lower 50% of the population. Social and private voluntary health insurance covers 20% of the population, accounting for 25 crore individuals15. Government expenditure as a percentage of healthcare expenditure in India has grown from 25.6% in 2015 to 36.6% in 2020. However, India's Out-of-Pocket (OOP) healthcare spending, at 50.6% in 2020, is notably high compared to other healthcare funding schemes within the nation. Furthermore, this OOP burden surpasses that of Asian peers, who typically rely on OOP for approximately 30-35% of healthcare expenses, significantly exceeding the World Health Organization's recommended range of 15-20%16. Encouragingly, India's OOP expenditure has been declining, reducing from 64.7% in 2015 to 50.6% in 2020, and private insurance adoption is slowly increasing.

Indian Medical Device industry
Major segments of the Indian Medical device industry include Equipment and Electronics, Disposables and Consumables, IVD equipment and Reagents, Implants, Surgical Instruments and other devices. India is counted among the top 20 global medical devices market. The Indian Medical Device market21 is estimated to reach US$ 50.0 Bn by 2030 at a growth rate of 20.4% from its estimated value of US$ 15.4 Bn in 2022.22 It is estimated to contribute 1.65% of the global medical device market. Export of medical devices from India increased from US$ 2.29 Bn in 2020 to US$ 3.40 Bn in 2022. The Indian medical device exports are projected to reach US$ 18 Bn in 2030.23 The major export countries for Indian Medical devices are the US, Germany, China, Singapore, France, Türkiye, Brazil, The Netherlands, Iran, and Belgium. India exported most medical devices to the US ($668.9 Mn) in 2023, followed by export to Germany ($176.2 Mn), China ($145.6 Mn), and the Netherlands ($106.5 Mn).

Among the segments of the Indian Medical Device market, Equipment and Electronics has a major revenue share of the total market (47%), followed by Disposables and Consumables (26%), IVD and Reagents (12%), Implants (9%), and Surgical Instruments (6%).

The Indian Medical Device market is transitioning from being import dependent with increase in domestic production and increasing share of exports. The Medical Device exports from India is expected to grow from US$ 3.4 Bn in 2022 to US$ 18.0 Bn in 2030. Increasingly, the domestic manufacturers are gaining market share and are meeting the demands of both domestic and international markets with their innovative products. As per statement by Indian Brand Equity Foundation (IBEF), India has achieved a significant milestone in the medical goods sector by transitioning to a net exporter of medical consumables and disposables in 2022-23. 

Indian Medical device companies have established a strong foothold in the domestic as well as international market due to their ability to deliver quality medical products, various government-led initiatives aimed at fostering growth, including the PLI Scheme and Medical Devices Parks Scheme, and availability of skilled talent and labor-cost advantage over global competitors. Indigenous players have achieved recognition by not only promoting the domestic production of high- end medical devices but also by exporting to the world in huge quantities. Domestic medical device manufacturers have established themselves in branded products, creating a unique brand positioning and demand/brand pull from physicians and patients.

Dental Market in India
India's dental care services market is estimated to be US$ 3.4 Bn in 2023 and expected to grow at a rate of 12.6% to reach US$ 7.8 Bn in 2030. The growth of the market is being driven by increasing prevalence of Oral Health disorders such as Dental Caries, Malocclusion and Periodontal diseases among the population, and greater demand for general and specialized dental care due to growing awareness.28 While independent dental clinics run by individual practitioners make up most of the Indian dentistry market, there is growing number of dental chains in metropolitan and Tier I cities29 due to improved affordability for dental care, increase in awareness and favorable financing environment to establish network clinics. The share of organized dental chains is expected to grow in the coming years. The Indian Dental Market is vast comprising of over 5,000 Dental Laboratories (entities manufacturing customized dental prosthesis such as crowns and bridges and supplying to dentists for treatment of patients) and 306 Dental Institutes.26 Further, the Indian Dental Market is growing due to the expansion of dental tourism and government initiatives supporting it. Affordable dental care combined with the high caliber of skilled dentists and treatment in India draws tourists to the country for dental care. India can accelerate the growth momentum in dental tourism through the implementation of advanced technology to perform procedures like implant surgery, cosmetic dentistry, Orthodontics, and Paediatric dentistry while ensuring high quality standards in a cost-effective manner.

Prevalence of Oral Health issues in India
The prevalence of oral health issues such as prevalence of untreated caries of deciduous (milk teeth) and permanent teeth, severe periodontal disease, and incidence of lip and oral cavity cancer is high in India compared to countries such US, UK, France, Australia, and Germany. The higher prevalence of such oral health conditions due to poor oral hygiene practices, excessive consumption of sugary and junk foods, and tobacco consumption results in more demand for dental health services.

BUSINESS STRENGTHS

1. Integrated Dental Products Expertise : The company stands as the only integrated dental products manufacturer in India, offering custom-made crowns, bridges, clear aligners, thermoforming sheets, and pediatric dental products. The Indian market for custom-made crowns and bridges is projected to grow at 11.8% CAGR, surpassing the global market growth rate of 8.0%. Innovative products like the iScanPro intraoral scanner further strengthen its portfolio.

2. Dominance in Domestic and Export Markets : With over 20 years in the dental laboratory business, it ranks as the second-largest player domestically and the leading exporter. The company caters to over 22,000 dental clinics and has a presence in more than 320 cities in India while exporting to over 95 countries globally.

3. Diverse Branded Product Portfolio : The company boasts a vertically integrated product lineup, ranging from custom-made crowns to branded consumer dental products, including clear aligners and pediatric dental solutions. National brand ambassadors and high-quality manufacturing enhance brand visibility and growth in the Indian dental consumables market.

4. Extensive Dental Network : An established network of over 22,000 dental clinics, companies, and dentists across India provides a significant market edge. The network is reinforced through workshops, branding initiatives, and product training, creating a strong competitive barrier for new entrants.

5. Advanced Manufacturing and Compliance : With six manufacturing facilities across Maharashtra and Kerala, supported by additional facilities in key cities, the company adheres to stringent regulatory standards. Products include clear aligners under the "Illusion Aligners" brand and thermoforming machines under the "Taglus" brand.

6. Experienced Leadership Team : Led by seasoned professionals with extensive expertise in the dental industry, the management team has driven rapid growth. The Board of Directors combines healthcare experts and executive leaders, ensuring strategic oversight and operational excellence.

BUSINESS STRATEGIES

1. Expand and Deepen Dental Network : The global dental consumables market is projected to grow at a CAGR of 10.5% from USD 177.4 billion in 2023 to USD 356.8 billion in 2030, with emerging markets like India and China expected to witness higher growth. The Indian dental laboratories market is fragmented, with limited adoption of digital dentistry, creating opportunities for scaling a trusted network of dentists and addressing high equipment costs, labor shortages, and automation challenges.

2. Scale Branded Product Offerings : Branded dental products such as clear aligners, dental crowns, and paediatric dental solutions are gaining traction globally, driven by increased premiumization and spending on dental procedures. Indian and Chinese domestic brands are capturing market share traditionally dominated by international brands, providing opportunities to cater to both domestic and export markets.

3. Enhance Product Offerings and Launch New Solutions : Plans are in place to upgrade zirconia restorations for better strength and aesthetics, expand metal-free options, and improve removable prosthesis for greater comfort and functionality. In the aligner segment, newer generations of clear aligners are set to be launched, offering improved comfort and invisibility.

4. Increase Manufacturing Capacities and Embrace Automation : With six manufacturing facilities across Maharashtra and Kerala, supported by five additional units in major cities, the focus is on expanding capacities and enhancing automation. These facilities comply with global standards like ISO 13485, and licenses from CDSCO and ANVISA enable broader production capabilities, ensuring readiness for future growth.

5. Adopt Multi-Channel Marketing Strategies : A multi-channel approach includes leveraging print, electronic media, social networking, and celebrity endorsements to promote dental products. Initiatives such as exhibitions, hands-on workshops, digital marketing, in-clinic branding, and influencer collaborations enhance brand visibility and increase patient flow across the Dental Network.

BUSINESS RISK FACTORS

1. Impact of Losses and High Fixed Costs : Consecutive losses for FY 2023 and 2022 stemmed from revenue shortfalls post-pandemic, unable to cover high fixed costs. Major expenditures included employee benefits of ₹595.89 million in FY 2023 and ₹480.09 million in FY 2022. Initial digitalization efforts incurred elevated freight charges, which fluctuated over the years.

2. Dependence on Expanding the Dental Network : Business success relies on broadening the Dental Network, increasing recommendations, and enhancing wallet share per dental clinic, company, and dentist. The network spans over 22,000 clinics and professionals as of September 30, 2024.

3. Regional Concentration Risks : Revenue heavily depends on operations in India, the U.S., and the UK. Regional concentration poses risks from economic slowdowns, political instability, or adverse government policies, which could impact financial performance.

4. Dependence on Mumbai-based Manufacturing Facilities : Five of six key manufacturing facilities are located near the Mumbai Metropolitan Region, contributing significantly to product output. Disruptions in this region could severely affect operations and financial performance.

5. Fluctuation in Dental Insurance and Public Healthcare Schemes : Export revenue depends on adequate reimbursement under public healthcare schemes and dental insurance in the U.S. and the UK. Rising healthcare costs and payer cost-control measures could restrict access to prosthetic treatments, impacting demand and pricing.

6. Risks of Branded Product Withdrawals : Issues with branded products like 'Illusion Zirconia' or 'Illusion Aligners' due to component failures or design defects could necessitate recalls, incurring significant costs and damaging brand reputation. Although stringent quality controls are in place, future product withdrawals could impact financial health and market trust.

NOTE : Laxmi Dental faces challenges including past financial losses due to high fixed costs, dependence on regional markets, and the need to expand its Dental Network. The company relies heavily on Mumbai-based manufacturing facilities and is vulnerable to fluctuations in dental insurance policies in key international markets. While stringent quality controls are in place, the risk of branded product withdrawals could impact reputation and financial performance. Strategic focus on operational efficiency, market expansion, and maintaining product quality remains critical to mitigating these risks.