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Price band for the issue has been fixed between ₹407 – ₹428 per share.
Investors can bid for one lot of 33 shares and in multiples thereafter.
The IPO will close for subscription on Wednesday, January 15.
Laxmi Dental IPO: Review
Anand Rathi: Subscribe for long term
On valuation parse at the upper end of the price band of ₹428, the issue is asking for a market capitalisation of ₹2,352 crore and based on FY25 annualised earnings, the company is asking a PE (price-to-earnings) of 64.6x times, which is aggressively priced.
Analysts at the brokerage firm said the company ranks among the top two dental laboratories in India by revenue and is the leading exporter of dental products. “We believe that going forward company’s growth factor could be driven by trends such as the changing regulatory requirements in the medical devices sector helps transition from unorganised to organised players, increasing awareness and demand for dental aesthetics, and the growing preference for metal-free dental products.”
Hence, considering all the parameters, the brokerage has recommended investors to subscribe to the issue for long term.
SBI Securities: The brokerage in a note said that Laxmi Dental is among the top two dental labs by revenue in India and largest exporter of dental products. Going forward, factors such as the shift from the unorganised to the organised segment, greater awareness and adoption of dental aesthetics and shift towards metal free products are likely to drive growth for the company.
The company has witnessed margin improvement from 4% in FY22 to 19.5% in H1FY25 driven by operational efficiencies. Reduction in interest cost following debt repayment is likely to improve profitability further, SBI Securities said.
KRChoksey: Neutral
The brokerage firm said that Laxmi Dental is well-positioned with planned capex and a strategic shift toward branded products. However, the absence of long-term contracts introduces uncertainty to near-term growth prospects. At a valuation of 93 times, the valuation appears expensive. Hence, it has assigned a ‘Neutral’ rating to the issue.
Laxmi Dental IPO: GMP today
Shares of Laxmi Dental were commanding a grey market premium (GMP) of ₹160, suggesting a listing pop of nearly 40% for the investors.
However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
Laxmi Dental IPO: Anchor book
The company has raised ₹314 crore from several institutional investors via anchor book on January 10. Marquee names like Abu Dhabi Investment Authority, Nomura Trust, Goldman Sachs, Eastspring Investments, and Natixis International Funds invested in the company via anchor book.
Further, HDFC MF, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Whiteoak Capital, Invesco, Mirae MF, Quant MF, Tata MF, DSP MF, HSBC India, among others also participated in the anchor book.
Laxmi Dental IPO: Structure
The company has reserved 75% of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15% of the net offer. The remaining 10% of net offer will be allocated towards retail investors of the issue.
Laxmi Dental IPO: Objective
The Mumbai-based company that makes custom-made crowns and bridges, and branded dental products intends to utilise fresh issue proceeds for repaying debt, purchasing new machinery, and general corporate purposes.
About Laxmi Dental
Laxmi Dental manufactures dental products through six manufacturing facilities, three of which are in Mira Road, two in Boisar, and one in Kochi, and further five supporting facilities in Mumbai, Delhi, Bengaluru, and Ahmedabad.
Its Boisar facilities are compliance with the quality system regulations of the United States Food and Drug Administration (US FDA), while manufacturing facilities in Mira Road and Boisar have received ISO certifications, an internationally recognized standard for medical device quality.
As per its draft papers, the firm ranks among India’s two largest dental laboratories by revenue in FY23. Laxmi Dental operates six manufacturing facilities, covering a total area of 146,804.42 square feet.
Laxmi Dental IPO: BRLM
Nuvama Wealth Management Ltd, Motilal Oswal Investment Advisors Ltd, SBI Capital Markets Ltd are the book running lead managers of the Laxmi Dental IPO, while Link Intime India Private Ltd is the registrar.
Laxmi Dental IPO: Allotment, listing date
The allotment for the Laxmi Dental IPO is expected to be finalised on January 16, while the issue will list on BSE, NSE with tentative listing date fixed as January 20.
