Laxmi Dental Limited, a leading dental products company in India, is set to launch its Initial Public Offering (IPO) from January 13 to January 15, 2025. The IPO aims to raise approximately ₹698.06 crore, comprising a fresh issue of ₹138 crore and an offer for sale of ₹560.06 crore.
Laxmi dental IPO
• IPO Dates: Opens on January 13, 2025, and closes on January 15, 2025.
• Price Band: ₹407 to ₹428 per equity share.
• Face Value: ₹2 per share.
• Market Lot: Minimum of 33 shares, amounting to ₹14,124 at the upper price band. Retail investors can apply for up to 14 lots (462 shares) totaling ₹1,97,736.
• Issue Size: Approximately ₹698.06 crore, with a fresh issue of ₹138 crore and an offer for sale of ₹560.06 crore.
• Listing Date: Expected on January 20, 2025, on both BSE and NSE.
Allocation for Investors:
Retail Individual Investors (RII): 10% of the offer.
Qualified Institutional Buyers (QIB): 75% of the offer.
Non-Institutional Investors (NII): 15% of the offer.
Company Overview:
Incorporated in 1989, Laxmi Dental Limited offers a comprehensive range of dental products and services, including custom-made crowns and bridges, clear aligners, thermoforming sheets, and pediatric dental products. The company operates fully integrated manufacturing facilities spanning over 146,804 square feet.
Financial Performance:
- FY 2022: Revenue of ₹138.07 crore with a net loss of ₹18.68 crore.
- FY 2023: Revenue increased to ₹163.84 crore with a reduced net loss of ₹4.16 crore.
- FY 2024: Revenue further rose to ₹195.26 crore, achieving a net profit of ₹25.23 crore.
- H1 FY 2025: Revenue of ₹117.99 crore with a net profit of ₹22.74crore.
Utilisation of funds
The proceeds from the IPO will be used for:
General corporate purposes.
Repayment of certain outstanding borrowings.
Investment in subsidiaries for debt repayment.
Funding capital expenditures for new machinery.
Investment in Bizdent Devices Private Limited.
Valuation Metrics:
- Earnings Per Share (EPS): ₹5.11 (FY 2024).
- Price-to-Earnings (P/E) Ratio: Approximately 79.65 to 83.76 based on FY 2024 earnings.
- Return on Net Worth (RoNW): 78.78%.
- Net Asset Value (NAV): ₹8.63 per share.
Risks and Considerations
Potential investors should be aware of:
- Market competition and revenue fluctuations.
- Dependence on international market growth.
- Operational risks related to manufacturing facilities.
Conclusions
Laxmi Dental’s IPO presents an opportunity to invest in a unique player within India’s dental products industry. However, investors should carefully assess the company’s financial health, market position, and associated risks before investment decisions.
Laxmi dental ipo