Laxmi Dental IPO Day 1: Issue booked 5.3 times on high retail demand; check issue size, price band & more

The initial public offering (IPO) of B2C dental aligner company Laxmi Dental Ltd was oversubscribed within hours of launch on Monday, January 13.

The ₹698.06 crore IPO received strong demand from retail and non-institutional investors on the opening day. The mainboard IPO is available for subscription till Wednesday, January 15.

The public offer received applications for more than 4.75 crore equity shares, compared to the net issue size of 89.70 lakh shares. According to the data available with the stock exchanges, the IPO was booked 5.30 times until 5:00 pm on the first day of bidding.

Retail investors applied for more than 2.03 crore shares against 16.3 lakh shares on offer, leading to a subscription of 12.48 times in the category. Non-institutional investors (NIIs) placed bids for more than 2.66 crore shares against 24.46 lakh shares set aside for the segment. The NIIs booked their quota 10.87 times.

The IPO received a tepid response from Qualified Institutional Buyers (QIBs) on the first day. Bids for only 6.21 lakh shares were received compared to the allocation of nearly 48.93 lakh shares. The QIBs subscribed 13% of their quota.

Here are the key details about the mainboard IPO for the investors planning to submit bids for Laxmi Dental shares.

Laxmi Dental raises ₹314 crore from anchor investors

Laxmi Dental, in the pre-bid round on Friday, Jan 10, garnered a little over ₹314 crore from the anchor investors. The company allotted 73.39 lakh shares to 31 fund schemes at a price of ₹428 per equity share, the upper end of the IPO price band.

Laxmi Dental IPO offer size, price band and other details

Laxmi Dental IPO comprises a fresh issue of 32 lakh equity shares, worth up to ₹138 crore, and an Offer-For-Sale(OFS) of up to 1.31 crore equity shares, amounting to ₹560 crore.

Promoters Rajesh Vrajlal Khakhar and Sameer Kamlesh Merchant and other shareholders are divesting stakes through the OFS.

OrbiMed Asia II Mauritius Ltd is also offloading company shares. Promoters and their group had a 46.56% stake in the company before the issue.

The company has set the IPO price band at ₹407 to ₹428 per share. The minimum lot size for a single application by retail investors is 33 shares, requiring an investment of at least ₹14,124.

Nuvama Wealth Management Limited, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited are the book running lead managers. Link Intime India Private Limited is the IPO registrar.

After the end of the subscription, the company is scheduled to finalise the IPO allotment status on January 16. The refunds will be processed on January 17, and shares will be transferred to the Demat accounts on the same day.

Shares of Laxmi Dental Limited will be listed on the NSE and BSE. The IPO listing has been scheduled for January 20.

Use of IPO proceeds

The company plans to use the IPO funds for debt repayment, capital expenditures, and investment in its subsidiary, Bizdent Devices Private Limited.

Laxmi Dental is an integrated dental products company. Its product portfolio comprises custom-made crowns and bridges as well as branded dental products like aligner solutions and paediatric dental products.

For the period ended September 30, 2024, in the current financial year, the company reported revenue of ₹ 117.9 crore and a net profit of 22.74 crore.

In FY24, the company’s net profit stood at ₹ 25.23 crore compared to a net loss of ₹4.16 crore in the preceding fiscal. Its revenue increased to ₹195.26 crore in FY24 against ₹163.84 crore in FY23.