Laxmi Dental Limited’s IPO will open for reservations on January 13, 2025. The total issue size is Rs 698.06 crore and the IPO includes both a fresh issue and an offering. Should you invest? Lakshmi Dental IPO?This article discusses the company’s fundamentals, financial condition, valuation metrics, and whether there is an attractive investment opportunity.?
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About Laxmi Dental Limited
Laxmi Dental Limited is India’s leading full-service dental products company offering custom crowns, bridges, clear aligners, pediatric dental solutions, and more. The company is a significant exporter, serving more than 90 countries with a strong domestic presence and a network of 22,000 clinics and dentists in more than 320 cities.
With its vertically integrated model and advanced manufacturing facilities, Laxmi Dental is well-positioned to take advantage of the growing adoption of digital dentistry both in India and globally.
Lakshmi Dental IPO Details
| IPO date | January 13, 2025 – January 15, 2025 |
| Listing date | January 20, 2025 |
| face value | ₹ 2 per share |
| price range | ₹ 407 to ₹ 428 per share |
| lot size | 33 stocks |
| Total issue size | 1,63,09,766 shares (Total up to ₹698.06 Cr) |
| Latest issue | 32,24,299 shares (Total up to ₹ 138.00 Cr) |
| offers for sale | ₹2 1,30,85,467 shares (Total up to ₹560.06 Cr) |
| Exhibition location | BSE, NSE |
| Issue before stock ownership | 5,17,37,850 shares |
| Stock holding post issued | 5,49,62,149 shares |
Lakshmi Dental IPO Reservation
| Investor category | Number of shares offered |
|---|---|
| Issuance of QIB shares | 75% or more of the net issue amount |
| Retail shares issued | Not more than 10% of the offer |
| NII (HNI) stock offering | Not more than 15% of the offer |
The minimum investment amount for individual investors starts from ₹14,124 per lot.
financial highlights
| metrics | September 30, 2024 | FY2024 | 2023 | 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 significant recovery in profitability and consistent revenue growth.
Peer comparison and evaluation
- PER: At the upper end of the price band of ₹ 428, the P/E ratio is 65 times based on 25 years of annual profit. Taking into account FY24 earnings, the P/E ratio is 131x.
- Other companies in the same industry: The P/E ratio of Poly Medicure Limited, the closest listed peer company, is 92 times.
- Considering this, we can infer that this stock has a bullish price tag.
Why 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 from manufacturing to distribution.
- Growth of digital dentistry: As the global dental industry embraces digital solutions, Lakshmi Dental is well-positioned to capture this trend through aligners and thermoformable sheets.
- Expanding global reach: A significant exporter to over 90 countries, Laxmi Dental benefits from its strong international footprint.
- improving finances: The company saw a strong return to profitability, with a weighted return on net assets (RoNW) of 22.77%.
- Tailwinds in healthcare: Rising dental health awareness and increasing disposable income in India are the driving forces behind sustained demand growth.
Laxmi Dental Limited IPO Risk Factors
- Losses incurred in the past: The company has made losses in the past.
- limited peer group: With only one publicly traded comparable company (Poly Medicure), there are limited benchmarks for investors to assess the company’s valuation and growth potential.
- High dependence on major markets:The majority of its revenue comes from India and the US, exposing the company to geographic concentration risk.
- fierce competition: Globally established players in the dental products market are likely to erode their market share, especially in the clear aligner segment.
- economic sensitivity: Dental care is often considered discretionary, so a slowdown in consumer spending could have a negative impact on demand.
- regulatory risk: Operating across multiple jurisdictions exposes companies to compliance risks from different regulatory frameworks.
How can I apply for Laxmi Dental IPO?
- UPI obligations: Use UPI ID through intermediary platform.
- ASBA method: Please apply through the online banking or mobile banking application of an ASBA compatible bank.
- Minimum investment amount: 1 lot (33 shares) at 14,124 rupees.
Gray Market Premium (GMP)
The gray market price (GMP) of Laxmi Dental is currently ₹ 50 – ₹ 55reflecting healthy demand from 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. The company is turning profit-generating, and its solid market position and favorable industry trends make this IPO attractive.
- On the other hand, IPO prices have been bullishly priced.
- High-risk investors who can tolerate the risk factors set out in the IPO prospectus (Lakshmi Dental IPO RHP) can invest in this IPO.
