Laxmi Dental Limited IPO would open for subscription on January 13, 2025. With a total issue size of ₹ 698.06 crore, the IPO includes both a fresh issue and an offer for sale. Should you invest Laxmi Dental IPO? This article provides company’s fundamentals, financials, valuation metrics, and whether it presents an attractive investment opportunity or not.
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About Laxmi Dental Limited
Laxmi Dental Limited is a leading integrated dental products company in India, with offerings including custom crowns, bridges, clear aligners, and pediatric dental solutions. The company is a significant exporter, catering to over 90 countries alongside its strong domestic presence, with a network spanning 22,000 clinics and dentists across 320+ cities.
With a vertically integrated model and advanced manufacturing facilities, Laxmi Dental is well-positioned to leverage the growing adoption of digital dentistry, both in India and globally.
Laxmi Dental IPO Details
| IPO Date | January 13, 2025 to January 15, 2025 |
| Listing Date | January 20, 2025 |
| Face Value | ₹ 2 per share |
| Price Band | ₹ 407 to ₹ 428 per share |
| Lot Size | 33 Shares |
| Total Issue Size | 1,63,09,766 shares (aggregating up to ₹698.06 Cr) |
| Fresh Issue | 32,24,299 shares (aggregating up to ₹ 138.00 Cr) |
| Offer for Sale | 1,30,85,467 shares of ₹2 (aggregating up to ₹560.06 Cr) |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 5,17,37,850 shares |
| Share Holding Post Issue | 5,49,62,149 shares |
Laxmi Dental IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Offer |
| NII (HNI) Shares Offered | Not more than 15% of the Offer |
Minimum investment for retail investors starts at ₹14,124 for one lot.
Financial Highlights
| Metrics | 30 Sep 2024 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 117.9 | 195.26 | 163.84 | 138.07 |
| Profit After Tax (₹ Cr) | 22.74 | 25.23 | -4.16 | -18.68 |
| Net Worth (₹ Cr) | 67.09 | 44.57 | 19.48 | 22.94 |
The company has shown a remarkable turnaround in profitability and a consistent increase in revenue.
Peer Comparison and Valuation
- P/E Ratio: At the upper price band of ₹ 428 and based on FY25 annualised earnings, the P/E works out to be 65x. If we consider FY24 earnings, P/E Stands at 131x.
- Industry Peer: Poly Medicure Limited, the closest listed peer, trades at a P/E ratio of 92x.
- Considering this, we can assume that the issue is aggressively priced.
Reasons to Invest in Laxmi Dental IPO
- Strong Market Position: Laxmi Dental is India’s only integrated dental products company, offering a unique value proposition with a comprehensive portfolio that spans manufacturing to distribution.
- Growth in Digital Dentistry: With the global dental industry embracing digital solutions, Laxmi Dental is well-positioned to capture this trend through its aligners and thermoforming sheets.
- Expanding Global Reach: A significant exporter to over 90 countries, Laxmi Dental benefits from its robust international footprint.
- Improving Financials: The company has shown a significant turnaround in profitability, with a weighted average return on net worth (RoNW) of 22.77%.
- Tailwinds in Healthcare: Rising awareness of dental health and increasing disposable incomes in India provide a supportive backdrop for sustained demand growth.
Risk Factors in Laxmi Dental Limited IPO
- Incurred losses in the past: Company has incurred losses in the past.
- Limited Peer Group: With only one listed comparable company (Poly Medicure), investors have limited benchmarks to evaluate the company’s valuation and growth potential.
- High Dependency on Key Markets: A significant portion of revenues comes from India and the US, exposing the company to geographical concentration risks.
- Intense Competition: Globally established players in the dental products market could erode market share, especially in the clear aligners segment.
- Economic Sensitivity: As dental care is often considered discretionary, any slowdown in consumer spending could adversely impact demand.
- Regulatory Risks: Operating across multiple jurisdictions exposes the company to compliance risks with varying regulatory frameworks.
How to Apply for Laxmi Dental IPO?
- UPI Mandate: Use your UPI ID through a brokerage platform.
- ASBA Method: Apply via net banking or mobile banking applications of ASBA-enabled banks.
- Minimum Investment: Rs 14,124 for one lot (33 shares).
Grey Market Premium (GMP)
The Grey Market Price (GMP) for Laxmi Dental is currently trending at ₹ 50 – ₹ 55, reflecting healthy demand among retail investors.
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Laxmi Dental Limited IPO – Should You Invest?
- Laxmi Dental IPO offers an exciting opportunity to invest in a company with a strong foothold in the growing dental industry. Company has turned to profit making and its robust market position and favorable industry trends makes this IPO attractive.
- On the other side, the IPO price is aggressively priced.
- High risk investors who are comfortable with the risk factors indicated in the IPO prospecturs (Laxmi Dental IPO RHP) can invest in this IPO.
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