Laxmi Dental Limited is set to launch its IPO on 13th January 2025 at the National Stock Exchange and Bombay Stock Exchange for a price band of Rs. 407 - 428 with an issue size of Rs. 698.06 cr.
Company Overview:
Laxmi Dental Limited is a B2B2C dental aligner company that has been in the dental business for more than 20 plus years. It was incorporated in 2004 and is India’s only end-to-end integrated dental products company as on March 31, 2024. It's expertise lies in a wide range of dental products like custom-made crowns and bridges, branded dental products such as aligner solutions including clear aligners, thermo-forming sheets, aligner-related products, and paediatrics dental products.
In 2023, it was one of the top two largest Indian dental laboratories by revenue in India.
Brief of Laxmi Dental IPO
The specifics of the IPO are as follows
- IPO Size: The Issue size of the Laxmi Dental IPO size is Rs. 698 Cr.
- Price Band: Laxmi Dental IPO has fixed the price band from Rs. 407 - Rs. 428 per equity share of face value Rs. 2.
- Issue Type: Laxmi Dental IPO offers a fresh issue as well as offer for sale deal. The fresh issue is offered up to Equity Shares of the face value of ₹2 each aggregating up to ₹1,500 million and the offer for sale Up to 12,826,847 Equity Shares of the face value of ₹2.
- Lot Size: Laxmi Dental IPO is offering a lot size of 33 equity shares.
- Application: Investors can apply as regular and invest up to Rs. 2,00,000/- and high-worth individuals can invest for a price between Rs. 2,00,000/- to Rs. 5,00,000/
- Listing Date: Laxmi Dental IPO is set to open for subscription on 13th January and closes on 15th January 2025.
- Stock Exchange: Laxmi Dental IPO would be listed on NSE and BSE.
Objectives Of The Laxmi Dental IPO
The main objective of the IPO is to expand its corporate strategic initiatives by investing on new technologies, equipment, machinery and manage the company capital by reducing debts by repaying to creditors and meeting fund requirements.
Financial Performance
The table below (in million) stipulates the financial performance of the company over the last 3 fiscal years.
Particulars | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
Net Worth from operations | 445.72 | 194.82 | 229.44 |
Revenue from operations | 1,935.55 | 1,616.31 | 1,368.43. |
Restated profit/ (loss) | 252.29 | (41.63) | (186.79) |
Total borrowings | 420.25 | 314.39 | 103.81 |
Industry Outlook
- The company also deals with dental aligners which is estimated to grow from $133.6-$569.0 million between 2023- 2030 at 23.0% in India compared to the global market estimate from $20.7-$54.9 billion between 2023-2030 at 15.0%.
Strengths And Risks
Strengths.
- The company is the only integrated dental products company in India.
- The company is the second largest player in domestic laboratory business and largest export laboratory with increasing adoption of digital dentistry India.
- The company deals with robust and advanced technologically with stringent regulatory compliance to ensure high quality and standards towards its consumers.
Risks.
- The dental business is increasing with many big players in this field of business. If the company’s cost-effective strategies are not met, it could have an adverse effect on the business, resulting to dipping in the operations effecting the financial condition.
- The company, with respect to operation is only concentrated in one certain jurisdiction of India and US. And Most of the manufacturing facilities are situated in Mumbai and any disruptions in these regions can result to effect the business, financial condition and results of operations.
- There are certain outstanding legal proceedings in which the Company, Subsidiaries, Promoters, and Directors are involved in, This could also have an adverse effect on the business, financial condition and results of operations.
Laxmi Dental IPO Subscription Details
The Laxmi Dental IPO has fixed the price band from Rs. 407 - Rs. 428 per share with a lot size of 33 equity shares. The IPO opens for subscription on January 13, 2025, and closes on January 15, 2025. The IPO can be applied as a regular and invest up-to Rs. 2,00,000/- and can also be applied as a High Network Individual and invest from Rs. 2,00,000/- upto Rs. 5,00,000/-. The IPO is set to list on the NSE and BSE.
Expert Recommendations;
The Laxmi Dental IPO is a good investment option considering the Dental Market in India is to grow 63.93 billion by 2039 with a CAGR rate of 9.40%.
Key Takeaways
The company vide this IPO is looking to implement strategic initiatives and promote the company further. The company also has set up its work operations in the USA and is one of the largest dental companies in India. The company’s lead managers are headed by Nuvama Wealth Management Limited, Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited.
FAQ; Frequently Asked Questions?
1. When is the list date of Laxmi Dental IPO?
The Laxmi Dental IPO opens for subscription on January 13, 2025 and closes on January 15, 2025.
2. Is the IPO of Laxmi Dental fairly Priced?
The IPO is priced from Rs. 407 - Rs. 428 per share with a lot size of 33 equity share which seems quite valued.
3. Where else we can get more information about the Laxmi Dental IPO?
You can get more information about the IPO on the Draft Red Hearing Prospectus(DHRP) or Red Hearing Prospectus (RHP) website or government websites like SEBI.
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