Laxmi Dental Limited, India's only end-to-end integrated dental products company as of September 2024, is preparing for an IPO with significant offerings in custom-made crowns, clear aligners, and pediatric dental products. The company is raising ₹698.05 Crores, comprising a fresh issue of 32.24 lakh shares worth ₹137.99 Crores and an offer for sale of 130.85 lakh shares totaling ₹560.05 Crores. The IPO subscription period began on January 13, 2025, and closes on January 15, 2025. The share price band is set at ₹407 to ₹428 per equity share, and the market capitalization at the upper price band stands at ₹2,352.37 Crores.

The IPO offers a lot size of 33 shares, and retail investors are required to invest a minimum of ₹14,124. High-net-worth individuals (HNIs) must invest in a minimum of 15 lots (495 shares), which totals ₹2,11,860. With NUVAMA Wealth Management, Motilal Oswal Investment Advisors, and SBI Capital Markets serving as the book running lead managers, the IPO is gaining considerable attention.

Key Highlights of Laxmi Dental IPO

GMP Trend & Listing Expectations
The Grey Market Premium (GMP) for Laxmi Dental IPO has been observed to be ₹100, indicating a potential listing gain of 24.51%. This premium reflects the demand in the grey market, although it does not directly correlate with the actual listing price. It's important to note that the GMP is used primarily for informational purposes and is not an accurate prediction tool for listing gains.

Subscription & Anchor Investors
On the final day of the subscription period, January 15, 2025, the Laxmi Dental IPO was subscribed 114.42 times, signaling robust investor interest. This level of subscription is indicative of the strong demand for the IPO. Laxmi Dental has also raised ₹314.12 Crores from Anchor Investors at the upper price band of ₹428 per share. The allocation was made to 73,39,395 equity shares, reflecting confidence from institutional investors.

IPO Proceeds & Purpose
The net proceeds from the IPO will be utilized in various strategic ways. A significant portion of the funds, ₹229.84 million, will be directed towards repayment of outstanding borrowings. An additional ₹46.00 million will go towards investment in subsidiaries, while ₹435.07 million will be used for the purchase of new machinery to fuel future growth. Another ₹250.04 million will support the capital expenditure needs of its subsidiary, Bizdent Devices Private Limited. The company also plans to allocate some funds for general corporate purposes.

Financial Performance & Valuation

The company's performance has demonstrated a consistent upward trajectory. For the period ended September 30, 2024, the Revenue from operations stood at ₹1,179.00 Million, showing steady growth over the past few years. Laxmi Dental's EBITDA for FY24 was ₹304.70 million, with a Profit After Tax (PAT) of ₹227.39 million, signaling a strong recovery from previous fiscal years.

The pre-issue EPS stands at ₹5.11, and post-issue EPS is expected to be ₹4.59, placing the company’s P/E ratio at 83.76x pre-issue and 93.24x post-issue. These ratios are fairly priced compared to the industry P/E ratio of 94x. Additionally, Laxmi Dental's ROCE and ROE for FY24 stand at 19.97% and 78.73%, respectively, reflecting the strong financial health of the company.

Why You Should Consider Laxmi Dental IPO

Laxmi Dental’s strong market position in the dental products industry and its innovative product offerings in areas like clear aligners and pediatric dentistry make it an attractive investment option. The GMP and listing gains also suggest a positive outlook for investors. Additionally, the experienced leadership team with over 30 years of combined industry expertise adds confidence to the company’s growth trajectory.

For investors looking to apply for IPOs, Laxmi Dental presents a promising opportunity, especially with its fair valuation and strong financial performance. If you are looking for high returns from the listing day and wish to apply for the Laxmi Dental IPO, it's essential to follow the IPO process and be prepared for the allotment results on January 16, 2025.

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