This newly listed smallcap stock surges 18%, trades 35.5% higher to IPO price

Laxmi Dental opened marginally up and later rallied as much as 18.05% to hit an intraday high of ₹580 per share on the NSE in morning deals, ending its two-day losing streak. More than 1 crore shares of the company changed hands on the bourse. The traded value stood at ₹554.62 crore. The company’s market value increased to ₹2,988.29 crore.

The stock later pared some of the gains to trade 10.67% higher at ₹543.7 apiece on the NSE at 1:05 pm.

Laxmi Dental is scheduled to announce its financial results soon for the December quarter of FY 2024-25, according to an exchange filing.

“The date of meeting of the Board of Directors of the Company to consider and approve the unaudited Financial Results of the Company for the said period shall be informed in due course,” the company informed the stock exchanges on Monday.

The company made the market debut on January 20, after a successful IPO. Shares of the company were listed at a premium of 26.63% on the NSE at ₹542 over the issue price of ₹428 apiece and hit all- time high of ₹584 on the same day. The stock closed the first day with an overall gain of 28% compared to the IPO price.

Laxmi Dental shares had declined by 8% on Wednesday after a two-day rally. The stock has so far gained 35.5% compared to its issue price.

Laxmi Dental this month raised ₹698.06 crore through its public offer which was open from January 13 to January 15. It has proposed to utilise the IPO funds for repayment of debt, in parts or full, of the company and its subsidiaries.

It has also proposed to invest funds in subsidiary Bizdent Devices Pvt Ltd for meeting capital expenditure requirements.

Laxmi Dental, an integrated dental products company, offers various dental products such as custom-made crowns and bridges, aligner-related products and branded dental products as well as paediatric dental products. The company is among the top two dental laboratories in India in terms of revenue.

For the April-September period, Laxmi Dental reported a net profit of ₹21.1 crore. Its revenue from operations stood at ₹116.7 crore in the first half of the year.