With Strong Financial Growth and Market Leadership, Laxmi Dental IPO Offers Investors a Long-Term Growth Prospect
BILKULONLINE
Ahmedabad, Jan 9: Ahmedabad-based Laxmi Dental Limited (LDL) is set to launch its Initial Public Offering (IPO) on Monday, January 13, 2025, with a closing date of Wednesday, January 15, 2025. The company has fixed the price band at ₹407 to ₹428 per equity share with a face value of ₹2 each. Investors can bid for a minimum of 33 shares and in multiples of 33 thereafter.
The IPO comprises a Fresh Issue aggregating up to ₹138 crore and an Offer for Sale (OFS) of 13,085,467 equity shares by the promoters and other selling shareholders.
Laxmi Dental Limited, India’s only company offering a comprehensive range of dental products and services, is set to launch its Initial Public Offering (IPO) on Monday, January 13, 2025, with a closing date of Wednesday, January 15, 2025.
IPO Details:
• Price Band: ₹407–₹428 per equity share (Face value: ₹2 per share).
• Issue Size: ₹698.06 crore, comprising:
o Fresh Issue: ₹138 crore.
o Offer for Sale: 1,30,85,467 equity shares.
• Market Lot: Minimum 33 shares per lot (₹14,124). Retail investors can apply for up to 14 lots (462 shares) for ₹1,97,736.
• Listing Date: The IPO is set to list on BSE and NSE on January 20, 2025.
• Allotment Date: Finalization of allotment will occur on January 16, 2025.
• Investor Quotas:
o Retail Investors: 10%.
o Qualified Institutional Buyers (QIBs): 75%.
o Non-Institutional Investors (HNIs): 15%.
Financial Performance
Laxmi Dental has demonstrated strong financial growth:
• FY24 Revenue: ₹195.26 crore, a 19.15% increase from ₹163.84 crore in FY23.
• FY24 Profit: ₹25.23 crore, a significant turnaround from a loss of ₹4.16 crore in FY23.
With consistent revenue growth and improved profit margins, analysts recommend the IPO as a long-term investment opportunity.
Company Background
Incorporated in 1989, Laxmi Dental Limited is a pioneer in the Indian dental products and services market. The company’s diverse portfolio includes:
• Custom-made crowns and bridges.
• Branded dental products such as clear aligners and related accessories.
• Pediatric dental products.
Operating across 146,804.42 square feet of manufacturing space, Laxmi Dental is one of India’s largest dental laboratories, prioritizing quality, efficiency, and customer experience in a fragmented and unorganized dental market.
The company has earned a reputation as a leading indigenous B2B2C dental aligner provider, driven by its innovation, market presence, and over two decades of expertise.
Promoters
The company’s promoters include Rajesh Vrajlal Khakhar, Sameer Kamlesh Merchant, and Dharmesh Bhupendra Dattani, who have played pivotal roles in establishing Laxmi Dental as a market leader.
Objectives of the Issue
Proceeds from the Fresh Issue will be utilized for:
1. Repayment/prepayment of certain borrowings – ₹22.98 crore.
2. Investment in subsidiaries for loan repayments – ₹4.60 crore.
3. Capital expenditure for purchasing new machinery – ₹43.51 crore.
4. Investment in Bizdent Devices Private Limited for new machinery – ₹25 crore.
5. General corporate purposes.
Listing and Management
The shares are proposed to be listed on BSE and NSE, with BSE being the designated stock exchange. LDL has received in-principle approvals from both exchanges.
Allocation and Subscription Details
The offer is being made through the Book Building Process, with allocations as follows:
• Qualified Institutional Buyers (QIBs): Minimum 75% of the Offer.
• Non-Institutional Investors (NIIs): Not more than 15%.
• Retail Individual Investors (RIIs): Not more than 10%.
The bidding process will be conducted through the ASBA mechanism, and UPI-based bidding is applicable for retail investors.
Why Invest?
With its proven track record, robust growth trajectory, and market leadership, Laxmi Dental’s IPO presents a compelling investment opportunity for both retail and institutional investors.
For further details, refer to the Red Herring Prospectus or contact the Book Running Lead Managers (Nuvama Wealth Management Limited, Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited).
The company, a leader in dental products and services, reported strong financial growth with a profit of ₹25.23 crore in FY24 against a loss in FY23. The shares are set to list on BSE and NSE on January 20, 2025. Retail quota is 10%, QIBs 75%, and HNIs 15%.
Sameer Merchant, Managing Director and CEO of Laxmi Dental Ltd, along with Rajesh Khakhar, Chairperson and Whole-Time Director, Dharmesh Dattani, CFO, and Kushagr Mathur from Motilal Oswal Investment, were present in Ahmedabad to announce the details of the company’s IPO. On Thursday, Sameer Merchant delivered a comprehensive presentation to the media.
Disclaimer: Readers are advised to carefully study the IPO prospectus and consult their financial advisors before making any investment decisions.
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