Laxmi Dental IPO

Laxmi Dental IPO Details

Laxmi Dental IPO Date

The Laxmi Dental Limited IPO will open for subscription on January 13, 2025, and the closing date for the IPO is January 15, 2025, according to the offer document filed by the company with SEBI. After this, investors are expected to be updated about the allotment status on Thursday, January 16, 2025.

Investors who have been allotted shares can expect them to be credited to their demat account on January 17, 2025. The shares will be listed on the NSE and the BSE on Monday, January 20, 2025.

Laxmi Dental IPO Price Band

The IPO includes a fresh issue and an offer for sale. The IPO price band has been set between ₹407 to ₹428 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue of ₹698.06 crore, comprising a fresh issue of ₹138 crore and an offer for sale of ₹560.06 crore.

The Laxmi Dental Limited IPO listing price will be determined on January 20, 2025. The listing price is the price at which a company’s shares debut on the stock exchanges.

Laxmi Dental IPO Lot Size

The Laxmi Dental Limited IPO details have been declared. The minimum lot size for an application is 33 shares, and the investor must apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹698.06 crore.

Laxmi Dental IPO Objective

The company proposes to utilise the net proceeds of the issue in the following manner:

•   Repayment of loans: The company will use ₹22.98 crore for the repayment/prepayment of certain outstanding borrowings in full or in part.
•   Investment in subsidiaries: The company will invest ₹4.60 crore in certain subsidiaries for repayment/prepayment of outstanding borrowings in full or in part.
•   Purchase of new machinery: The company will require ₹43.51 crore to fund the capital expenditure requirement to purchase new machinery.
•   Investment in subsidiary: The company will invest ₹25 crore in its subsidiary, Bizdent Devices Pvt Ltd., for the capital expenditure requirement to purchase new machinery.
•   General corporate purposes: The remaining amount will be used for general corporate needs.

About Laxmi Dental IPO

Incorporated in 2004, Laxmi Dental Limited is one of the leading providers of vertically integrated B2B2C dental aligner solutions. Its comprehensive offerings span custom-made crowns and bridges, branded dental aligners, paediatric dental products, and advanced digital dentistry solutions.

The company operates through three key business verticals: Laboratory business, which includes premium zirconia crowns and bridges under the “Illusion Zirconia” brand, contributing 64.75% of the total revenue in FY24. The aligner solutions business, featuring “Illusion Aligners,” the first Indian brand to receive US FDA 510(k) clearance, generated ₹53.84 crores in FY24, representing 28.12% of total revenue.

Additionally, the paediatric dental products segment managed through its joint venture Kids-E-Dental LLP, contributed ₹26.67 crores in FY24. This segment offers specialised products like FDA-cleared metal-free crowns and pre-formed dental solutions tailored for children.

Laxmi Dental has established a strong presence in both domestic and international markets. Its extensive network of over 22,000 dental clinics, companies, and professionals enables rapid scalability and competitive advantage. The company is also an exporter, particularly to markets in the US and UK, where it leads in the supply of custom-made dental prostheses.  

The company’s presence across the value chain of dental products helps it with cross-selling opportunities and increases wallet share from the existing dental network. This positions the company well to capture the increased potential of the growing market opportunities across segments.

As of September 30, 2024, Laxmi Dental has six manufacturing facilities, five located in Mira Road and Boisar, Mumbai, and one in Kochi, Kerala. Furthermore, the company has five supporting facilities with manufacturing capabilities. Two manufacturing facilities have USFDA approval, while all facilities are certified by ISO (International Organization for Standardisation). 

Between FY22 and FY24, the company's revenue from operations rose at a CAGR of 18.93%, while net profit has been volatile. In FY24, the net profit stood at ₹25.22 crore, while the company reported a net loss in the previous fiscal year. Meanwhile, the Indian dental market presents a favourable growth trajectory. The dental laboratory market is expected to grow at a CAGR of 11.8% outpacing the global growth rate of 8.0% to reach $3.1 Bn by 2030. 

Similarly, the clear aligner market in India is expected to grow from $133.6 million in 2023 to $569 million in 2030 at a CAGR of 23.0%, driven by increasing awareness of dental aesthetics, rising disposable incomes, and growing adoption of clear aligners as an alternative to traditional braces. This healthy industry growth could be a positive for companies like  Laxmi Dental, leading to more business opportunities.

Now, Laxmi Dental Limited is launching its initial public offer (IPO). The total IPO issue size is ₹698.06 crores, comprising a fresh issue and an offer for sale. Its shares will be listed on the NSE and BSE.

Company Name: Laxmi Dental Limited

Company Established On: July 8, 2004

Company Type: Public Limited Company

Managing Director/CEO: Sameer Kamlesh

Financial snapshot

Laxmi Dental IPO Analysis

Strengths and Opportunities

1. The company offers a range of custom-made dental prostheses, aligner solutions, paediatric products, and digital and cost-efficient in-house manufacturing.
2. The company's dental network reaches over 22,000 clinics, dental companies, and dentists, serving over 320 cities nationwide from FY2022 to September 30, 2024.
3. They offer clear aligners, paediatric dental products, and thermoforming solutions with a first-mover advantage.
4. They have a B2B2C model that creates a competitive barrier, builds brand credibility, reduces customer acquisition costs, and drives higher market penetration for clear aligners.
5. Operates 6 manufacturing facilities and 5 supporting units across India, with advanced automation and regulatory compliance to produce dental products for domestic and global markets.
6. Led by a highly experienced management team with expertise in the dental products industry, supported by various strategic partnerships with equity investors.

Risks and Threats

1. The company's business is concentrated in specific regions, and any loss or reduced demand in these areas could negatively affect its financial performance.
2. Changes in public healthcare schemes or dental insurance coverage in the US and UK could negatively impact business, operations, and growth.
3. It depends on skilled dental technicians and laboratory staff, and any difficulty retaining or managing them could negatively impact operations.
4. The company’s operations are closely tied to its brand reputation, and any damage could adversely affect its overall performance.
5. Ongoing legal proceedings involving the company, its subsidiaries, and its directors or promoters could negatively impact its financial condition and operations.
6. The company's operations depend on Mumbai-based manufacturing facilities, and regional disruptions could negatively affect operations.
7. Reliance on imports and exports and its ability to manage overseas markets may impact its growth, potentially affecting its financial condition.
8. The company's success relies on expanding and maintaining its dental network, and any failure to do so cost-effectively could impact its operations and financial health.

How to apply for the Laxmi Dental IPO?

If you are interested to invest in Laxmi Dental IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Laxmi Dental IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

You can also pre-apply for the Laxmi Dental IPO on Upstox which usually begins a day before the IPO opens for subscription.