Table of Contents
Laxmi Dental Limited IPO : Introduction
Laxmi Dental Limited IPO has excited the investment community with its ₹698.06 crore issue size and strong financial numbers – it reported a profit after tax of ₹22.74 crore in nine months ended September 30, 2024. During the IPO this is a chance to invest in a market leader which has been operating in the dental products industry for over 20 years. The IPO is scheduled to open on January 13, 2025 and the IPO gives investors a productive entry point, to which both of the retail and institutional investors can quickly benefit. The fresh issues and OFS component of the issue would fetch Laxmi Dental Limited a sum of ₹298.06 crore, at a price band of ₹407 to ₹428 per share, the mix of fresh issues and OFS component proposed.
In this article, we go into detail about what an IPO is, the timeline of an IPO, key financial highlights of the IPO, expert reviews of the IPO.
About Laxmi Dental Limited
Laxmi Dental Limited is a vertically integrated dental products company from its own manufacturer offering custom made crowns and bridges, branded and pediatric dental products. The more than 20 years of its experience in the industry makes one of the largest of the top two largest dental laboratories in India in terms of revenue, according to India reports and financial data published from the company’s Draft Red Herring Prospectus (DRHP). This should also position it as one of the leading companies in market with regard to profitability and market presence based on its unique B2B2C model for dental aligners.
IPO Schedule
| Event | Date |
|---|---|
| Opening Date | January 13, 2025 |
| Closing Date | January 15, 2025 |
| Allotment Date | January 16, 2025 |
| Refund Initiation and Demat Credit | January 17, 2025 |
| Listing Date | January 20, 2025 |
Issue Size and Price Band
| Category | Details |
|---|---|
| Total Issue Size | ₹698.06 crore |
| Fresh Issue | ₹138 crore |
| OFS | ₹560.06 crore |
| Price Band | ₹407 to ₹428 per share |
| Face Value | ₹2 per share |
| Lot Size | 33 shares |
| Minimum Investment | ₹13,431 for retail investors |
| Qualified Institutional Buyers (QIBs) | 50% of the offer |
| Non-Institutional Investors (NIIs) | 15% of the offer |
| Retail Individual Investors (RIIs) | 35% of the offer |
Key Performance Indicators
| KPI | Sep-24 | Mar-24 | Mar-23 |
|---|---|---|---|
| ROE (%) | 40.73 | 78.78 | -19.62 |
| ROCE (%) | 24.64 | 19.97 | -0.33 |
| RONW (%) | 40.73 | 78.78 | -19.62 |
| D/E Ratio | 0.61 | 0.94 | 1.61 |
| EPS (Basic) | 4.39 | 4.80 | -0.77 |
| P/E Pre IPO | 87.77 | - | - |
| P/E Post IPO | 51.73 | - | - |
Financial Details (Restated) in Crores
| Period Ended | Sep-24 | Mar-24 | Mar-23 | Mar-22 |
|---|---|---|---|---|
| Assets | 158 | 135 | 97 | 103 |
| Revenue | 118 | 195 | 164 | 138 |
| Profit After Tax | 23 | 25 | -4 | -19 |
| Net Worth | 67 | 45 | 19 | 23 |
| Total Borrowing | 41 | 42 | 31 | 30 |
Grey Market Premium (GMP) and subscription insights
Financial Performance and Objectives
Financial Highlights
| Category | Details |
|---|---|
| Total Assets | ₹158.22 crore |
| Revenue | ₹117.90 crore |
| Profit After Tax (PAT) | ₹22.74 crore |
| Net Worth | ₹67.09 crore |
| Borrowings | ₹40.91 crore |
Key Objectives of the IPO
- Debt Reduction: Proceeds will be used to pay or prepay certain borrowings in part.
- Capital Expenditure: Machinery of advanced Laxmi Dental Limited and its subsidiary, Bizdent Devices Pvt Ltd.
- General Corporate Purposes: Helping with business expansion, as well as business operational efficiency.
Subscription Details (as of January 13, 2025)
| Category | Subscription |
|---|---|
| Qualified Institutional Buyers (QIBs) | 0.58 times subscribed |
| Non-Institutional Investors (NIIs) | 5.08 times subscribed |
| Retail Individual Investors (RIIs) | Yet to receive subscriptions |
| Total Subscription | 2.8 times |
Review and Recommendations
Investors Key Considerations
- Nice listing gains await if you have positive GMP.
- Good, solid financial growth and profitability metrics.
- Growth in the dental products market with high potential.
Conclusion
The Laxmi Dental Limited IPO is a chance for entry in the growing healthcare and dental product segment for long term investors. The company is in strong financial shape, the market leader, and has strong innovative product offerings that promise to fuel sustained growth. While equity investors are being advised to evaluate the details of the IPO carefully before investing, they may also consult financial advisors to ensure that such investment is a wise one.
To make informed choices we will update you with more updates, expert reviews, and news regarding the Laxmi Dental Limited IPO date, price, allotment status, etc. Bookmark this page or share with your network for a user-friendly resource to reliable information.
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