Laxmi Dental made a stellar debut on the stock market on January 20, 2025, listing at ₹528 per share, representing a 27% premium over the issue price of ₹428. The IPO was well-received by investors, thanks to the company’s unique market position as India’s only end-to-end integrated dental products company.

Company Overview

Laxmi Dental is at the forefront of dental healthcare products in India, offering a wide range of custom-made crowns and bridges, branded clear aligners, thermoforming sheets, and paediatric dental products. As of September 2024, it stands as the only company in India with a comprehensive, integrated dental product offering from manufacturing to retail. This end-to-end solution sets it apart in the market, making it an attractive player in the growing dental care sector.

IPO Details and Performance

The Laxmi Dental IPO raised a total of ₹698.05 Crores, which included a Fresh Issue of ₹137.99 Crores and an Offer for Sale of ₹560.05 Crores. The IPO opened on January 13, 2025, and closed on January 15, 2025. The allotment was finalized on January 16, and the shares were listed on the BSE and NSE on January 20, 2025.

The price band for the IPO was set between ₹407 to ₹428 per share, and the lot size was 33 shares. Retail investors were required to invest a minimum of ₹14,124, while High-Net-Worth Individuals (HNIs) needed to invest ₹2,11,860 for 15 lots.

Subscription and GMP Trends
Laxmi Dental's IPO was oversubscribed by 114.42 times, showcasing strong investor interest. Prior to listing, the IPO’s Grey Market Premium (GMP) was ₹100, indicating a 24.51% potential listing gain. Despite a high P/E ratio at 93.24x post-issue, which is slightly higher than the industry average of 94x, the strong financial metrics suggest that the company is poised for future growth.

Financial Performance and Valuation

Laxmi Dental has shown significant growth in revenue, with revenues reaching ₹1,952.64 Million in FY 2023, up from ₹1,638.44 Million in FY 2022. This is paired with an impressive Profit After Tax (PAT) of ₹227.39 Million for the six-month period ending September 2024.

The company reported a Pre-issue EPS of ₹5.11 and a Post-issue EPS of ₹4.59, with a P/E ratio that signals a reasonable price considering the future growth prospects. The company’s Return on Equity (ROE) stands at a strong 78.73%, which suggests efficient use of capital to generate profits.

Objectives of the IPO

The proceeds from the IPO will be used for:

• Repayment of borrowings: ₹229.84 Million for reducing outstanding debts.
• Investment in subsidiaries: ₹46.00 Million to support Bizdent Devices Private Limited.
• Capital expenditure: ₹435.07 Million for purchasing new machinery and expanding operations.
• General corporate purposes: Ensuring sustained growth and development.

Laxmi Dental's Future Outlook

Given its industry-leading position and strong financial performance, Laxmi Dental is well-positioned for further growth. With a focus on increasing its production capacity and expanding its product range, the company is on track to capture a larger share of the dental products market.

Investment Recommendation
Laxmi Dental’s strong debut and the 27% premium to its issue price indicate solid investor confidence. Considering the robust market demand and potential for further growth, this IPO appears fairly priced with a high chance of delivering listing gains. Investors looking for long-term growth in the healthcare and dental products sector may find Laxmi Dental a promising opportunity.

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