Laxmi Dental IPO Day 1 Live Updates:
Laxmi Dental, backed by OrbiMed, is set to launch its initial public offering for public subscription today.
The company has raised slightly more than Rs 314 crore from anchor investors. This is prior to the opening of its initial share sale to the public.
Laxmi Dental IPO price band has been established at Rs 407-428 per share.
The public subscription for the initial public offering will close on January 15, and the company has secured over Rs 314 crore from anchor investors before initiating the public share sale.
If the shares are sold at the upper limit of the price range, the company anticipates raising roughly Rs 698 crore from the public offering.
Laxmi Dental IPO- Subscribtion?
- Canara Bank Securities – Subscribe for long term
According to analysts at Canara Bank Securities it is recommended investors subscribe to the public offering for a long-term perspective.
The analysts have said that the company is all set to benefit from increasing dental awareness in India and global outsourcing trends, particularly in the US.
However, economic sensitivity, competition, and promoter stake dilution are risks that require monitoring.
Moreover financially, the valuation is at the higher end, with a P/E of 89.17x as of FY2024 and an estimated P/E of 48.75x for FY2025E.
This is suggesting fair pricing without direct listed competitors for comparison.
- Deven Choksey Research – Neutral
According to the Brokerage firm Deven Choksey’s Research the firm has assigned a Neutral rating on the Laxmi Dental IPO.
The firm says the company Over the years, it has consistently expanded its production capacity and diversified its product portfolio.
Additionally the demand for cosmetic dentistry procedures like teeth whitening and clear aligners is growing rapidly with increasing awareness
Moreover with increasing awareness of oral health, rising disposable incomes, and advancements in dental technologies the company will prosper
Historically, the company has achieved a 5x asset turnover,” it added.
Laxmi Dental Financial Details
As per the RHP, Laxmi Dental’s revenue from operations jumped to Rs 193.55 crore in FY24, up 19.74 per cent from Rs 161.63 crore reported in FY23.
Meanwhile, the total comprehensive income attributable to owners of the parent stood at Rs 24.67 crore against a net loss of Rs 3.89 crore reported in FY23.
The company’s total expenses stood at Rs 186.65 crore, up 11.26 per cent from Rs 167.75 crore reported in FY23.
Laxmi Dental IPO objective
Laxmi Dental, in its RHP, said that it will not receive any proceeds from the OFS.
Each of the Selling Shareholders will be entitled to the Offer Proceeds. This will be to the extent of the Equity Shares offered by them in the Offer. This will be net of their respective share of the Offer-related expenses.
Accordingly, the Offer for Sale will not form a part of the Net Proceeds.”
Laxmi Dental, however, proposes to use the proceeds from the fresh issue for the repayment/prepayment, in full or in part, of certain outstanding borrowings.
The borrowings availed by the company, as well as for the investment in certain subsidiaries for the repayment/prepayment, in full or in part, of certain outstanding borrowings.
About Company
Laxmi Dental is a dental products company that has been incorporated on July 2004.
The dental company provides a diverse array of dental products, including custom crowns, bridges, clear aligners, even pediatric dental products.
Moreover the dental company manages six manufacturing facilities across India additionally it has its presence in more than 90 countries.
Additionally the company as of September 2024 had 2,372 employees and a network of over 22,000 clinics and dentists.
Laxmi Dental claims that it operates a fully integrated model, handling design, manufacturing, and distribution of dental products.
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