The Laxmi Dental IPO aims to raise a substantial ₹698.05 Crores, comprising a Fresh Issue of 32.24 Lakh shares valued at ₹137.99 Crores, and an Offer for Sale (OFS) of 130.85 Lakh shares amounting to ₹560.05 Crores. The subscription period opened on January 13, 2025, and will close on January 15, 2025. The allotment is expected to be finalized on January 16, 2025, with a listing date scheduled for January 20, 2025 on both BSE and NSE.

The price band for the IPO is set at ₹407 to ₹428 per equity share, and at the upper end of the price band, Laxmi Dental will have a market capitalization of ₹2,352.37 Crores. The IPO has a lot size of 33 shares, with retail investors required to invest a minimum of ₹14,124. High-Net-Worth Individuals (HNIs) must apply for a minimum of 15 lots (495 shares), which amounts to ₹2,11,860.

Laxmi Dental IPO Subscription and GMP

As of January 15, 2025, the IPO has been 21.67 times subscribed, signaling strong investor demand. The Grey Market Premium (GMP) for the IPO is reported at ₹100, suggesting 24.51% potential listing gains. However, GMP should be approached with caution as it is based on unorganized market activity and does not guarantee listing prices.

How to Check Allotment Status

The IPO allotment date for Laxmi Dental is January 16, 2025, and investors can check their allotment status by following these steps:

1. Visit the IPO allotment status page.
2. Select Laxmi Dental Limited IPO from the dropdown.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the information to view your allotment status.

Financial Overview and Investment Outlook

Laxmi Dental is India’s only end-to-end integrated dental products company as of September 2024, offering products ranging from custom-made crowns and bridges to clear aligners, thermoforming sheets, and pediatric dental products. The company is well-positioned with a strong management team, including Rajesh Vrajlal Khakhar, the Promoter, and Sameer Kamlesh Merchant, the Promoter and Managing Director, both bringing decades of experience in the dental products industry.

For the period ending September 30, 2024, Laxmi Dental reported revenues of ₹1,179.00 Million and a Profit After Tax (PAT) of ₹227.39 Million, continuing a trajectory of growth. The company's EBITDA for the same period stood at ₹304.70 Million, showing significant improvement over previous years.

Key financial metrics for FY24 include:

• Pre-issue EPS of ₹5.11 and Post-issue EPS of ₹4.59.
• Pre-issue P/E ratio of 83.76x and Post-issue P/E ratio of 93.24x, compared to an industry P/E ratio of 94x.
• ROCE of 19.97%, ROE of 78.73%, and RoNW of 78.78%, indicating strong profitability and returns on capital employed.

Objectives of the IPO

Laxmi Dental plans to use the funds raised from the IPO for the following purposes:

1. Repayment of Borrowings: ₹229.84 Million to repay or prepay certain outstanding borrowings.
2. Investment in Subsidiaries: ₹46.00 Million to fund repayments of borrowings in subsidiaries.
3. Capital Expenditure: ₹435.07 Million to purchase new machinery for the company.
4. Investment in Bizdent Devices Pvt Ltd: ₹250.04 Million to fund capital expenditures for new machinery.
5. General Corporate Purposes: To support the company’s ongoing operational needs.

Conclusion and Recommendation

The Laxmi Dental IPO presents an attractive investment opportunity for those seeking to invest in a growing, niche sector with strong demand for dental products. The company’s solid financial performance, coupled with the GMP suggesting a 24.51% listing gain, makes it a compelling option for risky investors. Given the strong market interest and promising financials, we recommend investors apply for this IPO with the aim of listing gains. However, as always, potential investors should consider their risk tolerance before committing to the offering.

The Upcoming IPOs in this week and coming weeks are  Land Immigration, EMA Partners, Stallion India and Capital Numbers.

The Current active IPO are Kabra Jewels, Rikhav Securities and Laxmi Dental.

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