Orbimed-backed Laxmi Dental Limited IPO

IT’S 1st EVER IPO OF DENTAL PRODUCTS COMPANY

Laxmi Dental IPO Dates	13 – 15 January 2025
Laxmi Dental Issue Price	INR 407 – 428 per share
Fresh issue	INR 150 crore
Offer For Sale	1,28,26,847 shares (INR 522.05 – 548.99 crore)
Total IPO size	INR 672.05 – 698.99 crore
Minimum bid (lot size)	33 shares (INR 14,124)
Face Value	INR 2 per share
Retail Allocation	10%
Listing On	NSE, BSE

COMPANY FINANCIALS:

	FY 2022	FY 2023	FY 2024
Revenue	136.84	161.63	193.56
Expenses	143.40	167.76	186.66
Net income	(18.68)	(4.16)	25.23
Margin (%)	(13.65)	(2.57)	13.04

Figures in INR Crores

	FY 2022	FY 2023	FY 2024
RONW (%)	(60.47)	(19.62)	78.77
NAV	4.44	3.77	8.63
ROCE (%)	(19.40)	(0.33)	19.97
EBITDA (%)	3.95	5.54	12.29
Debt/Equity	1.29	1.61	0.9

The Laxmi Dental Limited IPO price band has been fixed in the range of Rs. 407 to Rs. 428 per equity share of the face value of Rs. 2. The Laxmi Dental IPO date of subscription is scheduled for Monday, January 13, and will close on Wednesday, January 15. The allocation to anchor investors for the Laxmi Dental IPO is scheduled to take place on Friday, January 10.

Laxmi Dental IPO consists of a new equity share issuance valued at Rs. 138 crore, along with an offer-for-sale of 1.3 crore shares priced at Rs. 560.05 crore from current shareholders, including promoters Rajesh Vrajlal Khakhar, Sameer Kamlesh Merchant, and investor OrbiMed Asia II Mauritius

The floor price and the cap price are 203.50 times and 214 times the face value of the equity shares respectively. The price to earnings ratio based on diluted EPS for financial year 2024 for the company at the higher end of the price band is as high as 79.65 and at lower end of the price band is 83.76 times which is lower than the industry average of 94.02 times. The Laxmi Dental IPO lot size is 33 equity shares and in multiples of 33 equity shares thereafter.

The company has decreased the size of its fresh issuance from ₹150 crore and expanded the offer-for-sale amount from 1.28 crore equity shares as previously stated in the DRHP. Global investment firm OrbiMed Asia II Mauritius will be offering 1.16 crore equity shares in this issue, which constitutes 88.8% of the total offer-for-sale size, an increase from the 1.14 crore shares noted in the draft documents earlier.

Laxmi Dental IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors.

The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:

• Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company – INR 19.57 crore
• Investment in certain subsidiaries for the repayment/prepayment, in full or in part, of certain outstanding borrowings – INR 13.37 crore
• Funding the capital expenditure requirements for the purchase of new machinery for the company – INR 37.57 crore
• Investment in the subsidiary, Bizdent Devices, for the capital expenditure requirements for the purchase of new machinery – INR 35.10 crore

As of 31 March 2024, Laxmi Dental stands as India’s only fully integrated dental products company, offering a comprehensive portfolio of solutions. Its range includes custom-made crowns and bridges, branded dental products such as clear aligners, thermoforming sheets, and aligner-related products, as well as paediatric dental products. Ranked among India’s top two largest dental laboratories by revenue for the fiscal year 2023, the company caters to both domestic and international markets, including the USA, UK, and Europe.

Laxmi Dental manufactures its dental products across six manufacturing facilities spanning a total area of 146,804.42 square feet. These facilities include three located in Mira Road within the Mumbai Metropolitan Region, two in Boisar, Maharashtra, and one in Kochi, Kerala. Additionally, the company operates five supporting facilities with manufacturing capabilities, located in Mumbai (two facilities), Delhi, Bengaluru, and Ahmedabad.

With a market presence spanning more than 20 years, Laxmi Dental has established a robust dental network, reaching over 20,000 dental clinics, dental companies, and dentists over the past three fiscal years. The company has successfully catered to both global and domestic demand, exporting its dental products to more than 95 countries and distributing them across 300 cities in India between fiscals 2022 and 2024.

Tentatively, Laxmi Dental IPO basis of allotment of shares will be finalised on Thursday, January 16, and the company will initiate refunds on Friday, January 17, while the shares will be credited to the demat account of allottees on the same day following refund. Laxmi Dental share price is likely to be listed on BSE and NSE on Monday, January 20.

The public issue is being managed by the book running lead managers Nuvama Wealth Management, Motilal Oswal Investment Advisors, and SBI Capital Markets.