Laxmi Dental IPO Day 3 Live Update: Laxmi Dental IPO grey market premium at 33%; Issue subscribed 16.02 times so far; Check Price Band, Other Details

The initial public offering (IPO) of Laxmi Dental was oversubscribed 16.03 times by the second day of the bidding process. As of January 14, 2025, the IPO received applications for 14,37,67,239 shares, compared to the offered 89,70,371 shares.

The initial public offering (IPO) of Laxmi Dental, which opened for subscription on Monday, has been oversubscribed 7.3 times by the second day of the bidding process, after being fully subscribed within just an hour of its opening.

The high demand for the issue has primarily come from retail individual investors and non-institutional investors (NIIs). By 10:40 AM on the second day, retail investors had subscribed 16.03 times, followed by NIIs at 15.8 times.

Qualified institutional buyers (QIBs) have subscribed 14% of the issue.

This IPO, comprising a fresh issue of 32.24 lakh shares and an offer for sale (OFS) worth Rs 560 crore, will remain open for bidding until January 15.

India's dental care services market is valued at approximately US$ 3.4 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 12.6%, reaching US$ 7.8 billion by 2030. This growth is largely driven by the increasing prevalence of oral health disorders, such as dental caries, malocclusion, and periodontal diseases, as well as rising demand for both general and specialized dental care, fueled by greater public awareness. While most of the Indian dentistry market is dominated by independent dental clinics operated by individual practitioners, there is a growing presence of dental chains in metropolitan and Tier I cities. This trend is supported by improved affordability, higher awareness, and a favorable financing environment for establishing network clinics. The share of organized dental chains is expected to rise in the coming years.

The Indian dental market is extensive, encompassing over 5,000 dental laboratories that manufacture customized dental prosthetics, such as crowns and bridges, and supply them to dentists for patient treatment. The market also includes 306 dental institutes. Additionally, the expansion of dental tourism and government initiatives promoting it contribute to market growth. India's affordable dental care, combined with a high caliber of skilled dentists and treatment quality, attracts tourists seeking dental procedures. The country's potential for further growth in dental tourism can be accelerated by incorporating advanced technologies for procedures like implant surgery, cosmetic dentistry, orthodontics, and pediatric dentistry, while maintaining high standards and cost-effectiveness.

Company has reported consolidated loss after tax, negative earning per share for Fiscals 2023 and 2022, and written off Assets
in last three Fiscals.

Company is bringing the issue at price band of Rs 407-428 per share at p/e multiple of 131x on post issue annualized FY25 PAT
basis.

Company is the only integrated dental products company in India, well-positioned to capture industry tailwinds. Also, company is second largest player in domestic laboratory business and largest export laboratory with increasing adoption of digital dentistry. Company is vertically integrated diverse branded product portfolio with large dental network providing company with competitive advantage in the market. Company has robust technologically advanced capabilities with stringent regulatory compliance ensuring high quality standards and experienced management team with significant industry experience. Hence looking after all above , we recommend “Subscribe” on issue.

Laxmi Dental Limited IPO: Nuvama Wealth Management Limited, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited are the book running lead managers

Laxmi Dental Limited IPO: Analysts have recommended that investors subscribe to the issue for the long term, citing Laxmi Dental's diversified product portfolio, strong professional network, and strategic adoption of digital technologies as key factors supporting its growth potential.

Laxmi Dental Limited IPO: Economic sensitivity, high product costs, and limited dental insurance coverage (outside the U.S.) present risks to demand stability and growth for Laxmi Dental. Additionally, local competition and the dilution of the promoter’s stake below 50% could potentially impact brand recognition and investor confidence.

Laxmi Dental Limited IPO: Laxmi Dental is distinguished as one of the few vertically integrated players globally, with a business model that spans both backward integration (manufacturing raw materials) and forward integration (providing treatment planning solutions). This integrated approach gives the company a competitive advantage by allowing it to directly control the sourcing of raw materials. As a result, Laxmi Dental is able to maintain consistency and quality throughout the production process, offering end-to-end capabilities from raw material manufacturing to distribution.

Laxmi Dental Limited IPO: Founded in July 2004, Laxmi Dental is a prominent provider of dental products, offering a comprehensive range of solutions such as custom crowns, bridges, clear aligners, thermoforming sheets, and pediatric dental products. The company operates under the "Tags" brand for its aligner solutions and associated manufacturing products. As of September 30, 2024, Laxmi Dental operates six manufacturing facilities in Mira Road (Mumbai), Boisar, and Kochi, along with five support facilities in Mumbai, Delhi, Bengaluru, and Ahmedabad.

Laxmi Dental Limited IPO: As the issue opened today, Laxmi Dental's Grey Market Premium (GMP) fell to Rs 120 per share, down from Rs 160 quoted the previous day. This still represents a premium of 28% over the issue price.

Laxmi Dental Limited IPO: The allotment for the Laxmi Dental IPO is expected to be finalized on Thursday, January 16, 2025. Investors eagerly awaiting their share allocations can anticipate the company's debut on the BSE and NSE, tentatively set for Monday, January 20, 2025.

Laxmi Dental Limited IPO: Laxmi Dental has set a price band of Rs 407-428 per share for its IPO. Investors can bid for a minimum of 33 shares per lot, with additional bids in multiples thereafter. The minimum investment required for retail investors is Rs 14,124.

Laxmi Dental Limited IPO: The Rs 698-crore IPO consists of a fresh issue of 32 lakh shares worth Rs 138 crore and an offer for sale of 1.31 crore shares amounting to Rs 560 crore.