Laxmi Dental Limited, a prominent player in the dental products industry, is set to launch its Initial Public Offering (IPO) on January 13, 2025, with the subscription period closing on January 15, 2025. The company has established a price band of ₹407 to ₹428 per equity share for this offering.
Company Overview
Established in 1989, Laxmi Dental Limited has evolved into an integrated dental products enterprise with a global presence in over 90 countries. The company offers a diverse range of products and services, including custom-made crowns and bridges, branded dental solutions like Illusion Aligners, and pediatric dental products under the Kids-e-Dental brand.
Financial Performance
As one of the top two largest dental laboratories in India by revenue for Fiscal 2023, Laxmi Dental has demonstrated robust financial performance. The company is recognized as the second-largest player in the domestic laboratory business and the largest exporter among Indian dental labs, with a presence in over 95 countries.
Global Presence and Technological Advancements
Laxmi Dental’s commitment to innovation is evident through its adoption of digital dentistry and advanced manufacturing technologies. The company operates state-of-the-art facilities and maintains stringent regulatory compliance to ensure high-quality standards. Its global reach is supported by service hubs in the United States and Europe, catering to a diverse clientele worldwide.
IPO Structure and Objectives
The IPO comprises a fresh issue of equity shares worth ₹138 crore and an Offer for Sale (OFS) of 1.31 crore equity shares, amounting to ₹560 crore, by existing shareholders, including promoters Rajesh Vrajlal Khakhar and Sameer Kamlesh Merchant, as well as OrbiMed Asia II Mauritius Ltd. The primary objectives for raising funds through this IPO include:
- Debt Repayment: A portion of the proceeds will be allocated to repay existing debts, thereby strengthening the company’s financial position.
- Capital Expenditure: Investments are planned to enhance production capabilities and technological infrastructure.
- Subsidiary Investment: Funds will be directed towards Bizdent Devices Pvt Ltd, a subsidiary of Laxmi Dental, to support its growth and expansion initiatives.
- General Corporate Purposes: Remaining funds will be utilized for various corporate needs to support overall business operations.
Anchor Investment
Prior to the public offering, Laxmi Dental successfully raised ₹314 crore from anchor investors, including notable entities such as Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, and the Abu Dhabi Investment Authority.
Laxmi Dental IPO Details
| IPO Issue Opening Date: | 13th Jan 2025 |
| IPO Issue Closing Date: | 15th Jan 2025 |
| IPO Issue Price: | ₹407.00-428.00 Per Share |
| DRHP: | Download DRHP |
| RHP: | Download RHP |
| Anchor List: | Download Anchor List |
| IPO Listing At: | BSE, NSE |
| Retail Quota: | Not more than 10% of the Offer |
| IPO Issue Type: | Book Build Issue |
| IPO Issue Size: | ₹698.06 Cr |
| Offer for Sale: | ₹560.06 Cr |
| Fresh Issue: | ₹138.00 Cr |
| Face Value: | ₹2 Per Equity Share |
| IPO Discount: | TBD |
| Promoter Holding Pre IPO: | 46.56% |
| Promoter Holding Post IPO: |
Laxmi Dental IPO Dates
Latest and updated information on Laxmi Dental IPO. Dates will be updated as they are announced.
| IPO Activity | Date |
|---|---|
| IPO Open Date | 13-01-2025 |
| IPO Close Date | 15-01-2025 |
| Basis of Allotment Finalisation Date* |
16-01-2025 |
| Refunds Initiation* | 17-01-2025 |
| Credit of Shares to Demat Account* |
17-01-2025 |
| IPO Listing Date* | 20-01-2025 |
* – Tentative Dates
Laxmi Dental IPO Lots
| IPO Activity | |
|---|---|
| Issue Price | ₹407.00-428.00 |
| Market Lot: | 33 Shares |
| 1 Lot Amount: | ₹14124 |
| Min Small HNI Lots(2-10 Lakh): | 495 shares (15 lots) – ₹211860 |
| Min Big HNI Lots(10+ Lakh): | 2343 shares (71 lots) – ₹1002804 |
Laxmi Dental Limited Financial Information (Restated Consolidated)
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Assets | 158.22 | 134.52 | 96.54 | 102.75 | ||||||||||||||||||||||||||||||||||||
| Revenue | 117.9 | 195.26 | 163.84 | 138.07 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 22.74 | 25.23 | -4.16 | -18.68 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 67.09 | 44.57 | 19.48 | 22.94 | ||||||||||||||||||||||||||||||||||||
| Total Borrowing | 40.91 | 42.03 | 31.44 | 29.63 | ||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Laxmi Dental IPO Peer Comparison
The table below show peer comparison from DRHP/RHP.
| Company | EPS Basic | EPS Diluted | NAV | P/E(x) | RoNW | Financial statements |
|---|---|---|---|---|---|---|
| Laxmi Dental Limited | 4.8 | 4.8 | 8.63 | 78.78 | ||
| Poly Medicure Ltd. | 26.92 | 26.9 | 153.22 | 94.02 | 19.05 |
Conclusion
Laxmi Dental Limited’s upcoming IPO presents an opportunity for investors to participate in the growth of a leading dental products company with a strong track record, extensive global presence, and commitment to innovation. The funds raised are poised to further enhance the company’s operational capabilities and market reach, positioning it for sustained growth in the dynamic dental industry.
Disclaimer: This blog post is for informational purposes only and should not be construed as financial advice. Potential investors are advised to read the Red Herring Prospectus and consult with financial advisors before making investment decisions.