Laxmi Dental IPO : GMP, Dates, Price & Key Details

Laxmi Dental IPO - Complete Overview 

Laxmi Dental IPO a Mainboard IPO is a book-built issue of Rs.698.06 Cr (1,63,09,766 Shares) by Laxmi Dental Limited is known to be an integrated dental products company, which was founded in July 2004. It offers custom crowns and bridges, branded dental items like clear aligners and thermoforming sheets, as well as products related to aligners. And also pediatric dental products complete as their aligner solutions. 

The product things include custom crowns and bridges, clear aligners, thermoforming sheets, pediatric dental products, and many more. 

It has thermoforming sheets, biocompatible 3D printing resins - 'Taglus', and machines for manufacturing clear aligners under this brand name.

Uniquely, the company operates with a completely integrated model whereby it oversees the entire move from design and manufacture to distribution. 

To date, the company has six manufacturing bases- three at Mira Road in Mumbai, two at Boisar, and one in Kochi, also maintaining five supporting facilities in Bengaluru, Mumbai, Delhi, and Ahmedabad by 30 Sep 2024. 

It sells to over 90 countries worldwide and has a strong presence in both domestic and foreign markets. By September 30, 2024, the company's dental network will include over 22,000 clinics and practitioners in 320 locations. 

This new IPO is to be launched on 13 January 2025, and the initial public offering of this upcoming IPO will end on 15 January 2025.

Laxmi IPO Details

The Rs.698.06 Crore Laxmi Dental Limited IPO comprises a combination of a fresh issue of 0.32 Cr Shares (Rs.138 Cr) and an offer for sale (OFS) of 1.31 Cr Shares (Rs.560.06 Cr). The IPO listing date is on January 20, 2025. Laxmi Dental IPO price is Rs.407 to Rs.428. 

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

 

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Cash Flows

The cash flows for various activities are shown below:

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Product-wise Revenue Breakdown

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Sales-wise Revenue Breakdown

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(Source RHP)

The Objective of the Issue

• Payback or prepayment in full or in part of some outstanding loans that the business has taken out.

• Investing in specific subsidiaries to fully or partially settle or prepay certain outstanding debts.

• Financing the necessary capital expenditures for the company's acquisition of new machinery.

• To meet the capital expenditure needs for the acquisition of new machinery, we must invest in our subsidiary, Bizdent Devices Private Limited.

• General Corporate Purposes.

 

Peers of Laxmi Dental Limited

 

Evaluation

The Laxmi Dental IPO price is between Rs.407 to Rs.428 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.80 from the last year, the resulting P/E ratio is 89.17x. 

Considering the weighted EPS of Rs.1.55 for the last three years, the P/E ratio is 276.13x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 94.02x.

In simple words, the P/E ratio of this IPO (89.17x), compared with the industry’s average P/E of 94.02x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths  

• This is the only fully integrated dental products company in the country that is well-poised to capture the opportunities of future tailwinds in the industry.

• Second-largest player in the domestic laboratory business, and largest export laboratory besides witnessing strong adoption for digital dentistry.

• Vertically integrated diverse branded product portfolio.

• Large Dental Networks provide a market competitive advantage.

• Robust technologically advanced capabilities and strict regulatory compliance supervision for excellent quality standards.

 

IPO’s Weaknesses 

• Declining Financial Figures and Negative Returns: The company has reported losses after tax in consolidation and negative earnings per share for the Fiscals 2023 and 2022, and it has written off assets over the last three fiscal years. There is no guarantee that these challenges are likely to continue in the future.

• Reliance on Reputation and Brand Image: This business is hugely dependent on its reputation and brand image. Any such publicity, damage to the brand, failure to retain and build an image, or not being able to uphold quality standards would add negativity to the operations of the business.

• Concentrated Manufacturing Facilities: All critical manufacturing assets reside in Mumbai and the surrounding areas. So, any problem in this region can affect the business, financial health, and profit and loss account of the company severely.

Laxmi Dental IPO GMP

Laxmi Dental IPO GMP today has not started as of 08 January 2025.

Laxmi Dental Limited IPO Timetable (Tentative)

The Laxmi Dental IPO date is from 13 January to 15 January, with IPO allotment on 16 January, and refund initiation on 17 January 2025. The IPO listing date is on 20 January 2025.

 

IPO Other Details 

The IPO with a face value of Rs.2 per Share, offers an IPO size of 1,63,09,766 Shares (Rs.698.06 Cr) and it will be listed at BSE and NSE.

 Laxmi Dental IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (33 Shares) amounting to Rs.14124 and 14 Lots (462 Shares) amounting to Rs.1,97,736 respectively, while for HNI investors, the minimum Lot is 15 (495 Shares) amounting to Rs.2,11,860.

IPO Reservation

Promoters and Management of Laxmi Dental Ltd.

• Rajesh Vrajlal Khakhar

• Sameer Kamlesh Merchant

• Dharmesh Bhupendra Dattani.
  
  

IPO Lead Managers

• Nuvama Wealth Management Limited

• Motilal Oswal Investment Advisors Limited

• SBI Capital Markets Limited.

Dividend Policy

The company has not paid a dividend in the last three FYs.

Conclusion

Laxmi Dental IPO offers an opportunity to invest in a leading dental products company with a strong presence in India and international markets. While the company has a unique integrated model and robust product portfolio, its financial challenges and reliance on specific regions are concerns. Investors should carefully assess the risks and growth potential before applying.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company  Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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