Vasa Denticity Limited, a leading Indian dental-tech company, has taken a major strategic step by acquiring a 51% stake in IDS Denmed Private Limited, one of India’s largest offline dental distribution companies. The decision was approved at the Board meeting held on August 1, 2025, through video conferencing. This acquisition aligns with the company’s roadmap to build India’s most integrated dental supply ecosystem and enhance its market presence across the country.

The acquisition will be completed in two tranches. First, Vasa Denticity will acquire 19.92% equity stake in IDS Denmed via cash consideration of ₹50.00 crore, acquiring 9,962 shares at ₹50,200 per share, including premium. The second tranche involves preferential allotment of 12,34,185 equity shares of Vasa Denticity at ₹632 per share (face value ₹10 + premium ₹622) to the shareholders of IDS Denmed. After completion, Vasa Denticity will hold 51% controlling stake, making IDS Denmed its subsidiary.

The strategic acquisition is not a related-party transaction, and the promoters or promoter group of Vasa Denticity have no interest in IDS Denmed. IDS Denmed, incorporated on April 11, 2006, specializes in dental products distribution, collaborating with over 50 international brands such as Bego, VITA, J.Morita, Melag, and Marathon. It has a presence across India, serving dental clinics and professionals with high-quality products.

Financially, IDS Denmed reported a turnover of ₹240.1 crore and EBIDTA of ₹20.7 crore for FY25 (un-audited). The last three years showed consistent performance with FY24 turnover at ₹246.21 crore and EBIDTA ₹14.95 crore, and FY23 turnover at ₹215.84 crore with EBIDTA ₹23.2 crore. The acquisition will enable synergies in manufacturing, distribution, and operations, expanding Vasa Denticity’s footprint and product portfolio.

To obtain shareholder approval, Vasa Denticity has announced an Extraordinary General Meeting (EGM) on August 25, 2025, which will be held through video conferencing/other audio-visual means. Mr. Loveneet Handa, Proprietor of Loveneet Handa & Associates, has been appointed as the scrutinizer for the EGM voting process. The preferential allotment and acquisition are subject to regulatory approvals in accordance with the SEBI (LODR) Regulations, Companies Act, and other applicable laws.

The acquisition will be executed through a combination of cash payment and share swap, ensuring a balanced approach to capital deployment. The cash consideration of ₹50.00 crore will acquire the initial 19.92% stake, while the share swap of 12,34,185 equity shares valued at ₹78.00 crore will complete the remaining 31.08% acquisition. The total acquisition value amounts to approximately ₹1.28 billion for the 51% controlling stake in IDS Denmed.

The integration of IDS Denmed’s capabilities with Vasa Denticity’s online platform Dentalkart.com will create a comprehensive dental supply ecosystem, enhancing operational efficiencies and providing a broader range of products to customers nationwide. The combined entity is expected to strengthen market position, improve margins, and expand reach both domestically and internationally.

The proposed allotment details for the share swap include key non-promoter shareholders of IDS Denmed such as Anju Malhotra, Dimple Malhotra, Parveen Malhotra, Sanjay Malhotra, and Santosh Malhotra, receiving a total of 12,34,185 Vasa Denticity shares in exchange for 15,538 IDS Denmed shares, reflecting proportional ownership and participation in the combined entity.

In conclusion, Vasa Denticity Limited’s strategic acquisition of IDS Denmed represents a landmark move in the Indian dental products industry. The transaction not only creates India’s largest integrated dental supply network but also ensures long-term growth, operational synergies, and enhanced value for stakeholders, including customers, partners, employees, and shareholders. The move underscores Vasa Denticity’s commitment to leadership, innovation, and expansion in the global dental sector.

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