Laxmi Dental Limited, one of the leading dental products manufacturers in India, is opening the IPO for subscription from 13 January 2025 to 15 January 2025. The issue size is ₹698.06 crore, comprising a fresh issue of ₹138 crore and an Offer for Sale (OFS) of ₹560.06 crore by existing shareholders and promoters.
Company Overview
Since its incorporation in July 2004, Laxmi Dental Limited has become India's only fully integrated dental products company. The company offers a range of products, including custom crowns and bridges, clear aligners, thermoforming sheets, and pediatric dental products. In Mumbai, Boisar, and Kochi, the company has six manufacturing facilities spread across 146,804.42 square feet. Laxmi Dental has a strong network of over 22,000 dental clinics across more than 320 cities in India, and the products are exported to more than 90 countries.
IPO Details
Issue Size: The overall issue size is ₹698.06 crore, wherein ₹138 crore is a fresh issue and ₹560.06 crore is an OFS.
Price Band: The company has set the price band for the shares between ₹407 and ₹428 per share.
Lot Size: A minimum of 33 shares can be bid for by investors, amounting to a minimum investment of ₹14,124, at the top end of the price band.
Important Dates:
IPO Launch Date: 13th January 2025
IPO Final Date: 15 January 2025
Basis of Allotment: 16 January 2025
Start of Refunds: January 17, 2025
Credit of Shares in the Demat Accounts: January 17, 2025
Date Listed: January 20, 2025
Eligibility to Trade: The shares will be listed on the BSE and NSE.
Anchor Investment
Before the public offering, Laxmi Dental raised ₹314 crore from anchor investors like Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, Mirae Asset Mutual Fund, Tata Mutual Fund, Birla Sun Life Insurance, Max Life Insurance, Abu Dhabi Investment Authority, Nomura, Goldman Sachs, Al Mehwar Commercial Investments, and Natixis Investment Managers. A total of 73.39 lakh shares were allotted to 31 entities at ₹428 a share.
Utilization of IPO Proceeds
Fresh issue proceeds are specifically allocated for multiple strategic objectives:
Debt Repayment: A portion of the amounts raised will be used to repay or prepay certain borrowings.
CAPEX: Upgrading of machinery to improve production efficiency.
Investments in Subsidiaries: Notably, there are investments in Bizdent Devices Private Limited to support subsidiary operations.
Use of Proceeds General Corporate Purposes: Proceeds will also be used for general corporate purposes.
Financial Performance
Laxmi Dental has seen tremendous growth over the recent years:
MARKET REVENUE: ₹193.56 crore revenue from operations for the fiscal year ended March 31, 2024, compared to ₹161.63 crore a year ago.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization rose to ₹23.79 crore versus ₹8.96 crore a year earlier.
Net Profit: The net profit of ₹25.23 crore compared positively with the net loss of ₹4.16 crore in the fiscal year earlier.
Competitive Strengths
Some of the key strengths that reinforce Laxmi Dental's position in the market are as follows:
Integrated Operations: GDPL is India’s only end-to-end integrated dental products company, managing the entire value chain from design to distribution.
Wide Network: More than 22,000 clinics and dentists in over 320 cities and exporting dental products to over 90 countries.
Innovation: Focus on adopting new technologies to improve product and operational efficiencies.
Regulatory compliance: Laboratory and clinical testing for regulatory compliance to stringent standards ensures product safety and efficacy
Risks and Considerations
All potential investors must know certain risks:
Market Competition: Competitive analysis is an important factor, in which market players work together for a larger share, which can be established through research and innovation.
Regulatory Risks: Most of the time, it is difficult to comply with different countries' health and safety regulations.
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