Laxmi Dental IPO Day 3 Highlights: Allotment date focus after issue booked over 114 times; GMP, other key details

Laxmi Dental IPO Highlights: The bidding for the Laxmi Dental IPO ended on January 15 and the issue was subscribed 114.42 times in total. Focus now shifts on Laxmi Dental IPO allotment date which is expected to be soon.

Laxmi Dental IPO Day 3 Live Updates: Laxmi Dental IPO was subscribed 114.42 times on the third day of issue led by NIIs. The NII portion was subscribed 147.95 times, retail investors portion was booked 76.24 times and QIB portion was booked 110.38 times.

Laxmi Dental IPO Day 3 Live Updates: Laxmi Dental IPO was subscribed 114.26 times so far on the third day of issue led by NIIs. The NII portion was subscribed 147.81 times, retail investors portion was booked 75.56 times and QIB portion was booked 110.38 times.

Master Capital Services Ltd on Laxmi Dental IPO:

The dental laboratories market in India is highly fragmented and very few laboratories have adopted digital dentistry and operate at scale, catering to a large network of dentists in domestic as well as export markets. Laxmi Dental Limited is one of the leading player in dental consumable market plans to deepen penetration amongst existing Dental Network while also expanding Dental Network to the other regions. The company is one of the very few organized players in dental laboratories segment having sufficient scale of operations, following quality standards, and catering to both domestic and international markets. The company continues to scale up branded product offerings and undertake product enhancements of existing dental products and launch new dental products. Investors looking to invest can invest in the IPO for the long term.

On valuation parse at the upper band of Rs.428 /-, issue is asking for a Market cap of Rs.2352 Cr. Based on annualized FY 2025 earnings and fully diluted post-IPO paid- up capital the company is asking for a PE of 76.8x (adjusted for exceptional items) which seems aggressively priced considering the near term growth triggers and compared to its industry peers. As the company is India’s only end-to-end integrated dental product company operating in a niche and growing market segment may command a higher valuation multiple. Investors should also look at IPO offers which come with Rs.560.06cr OFS which is 80% of total issue which is an area of concern for new investors. 

We believe by leveraging its B2B2C model and innovative offerings, Laxmi Dental is well-positioned to capture a significant share in the growing dental solutions space. Hence, we recommend risk taking investors to “SUBSCRIBE” for Laxmi Dental Ltd IPO for long term perspective only.

The initial public offer of Laxmi Dental IPO has been subscribed 113.69 times on the third day of subscription today, at 16:36 IST, as per BSE data.

The initial share sale received bid for 1,01,98,33,782 shares against 89,70,371 shares on offer, according to BSE.

The portion for retail investors received 73.18 times subscription while the quota for non-institutional investors got subscribed 147.33 times. The qualified institutional buyers (QIBs) part is booked 110.38 times.

A significant portion of the company's revenue comes from dental products manufactured at six facilities: Three in Mira Road and two in Boisar, Maharashtra, and one in Kochi, Kerala.

• Geographic Concentration: Major manufacturing facilities are concentrated in Mumbai and surrounding regions. Disruptions in this region may have a significant adverse effect.
• Brand Risk: The business depends on the perception of its brand. Any negative publicity or lack of maintenance of brand credibility may have an adverse impact on business operations and financial conditions.

The initial public offer of Laxmi Dental IPO has been subscribed 113 times on the third day of subscription today, at 15:48 IST, as per BSE data.

The initial share sale received bid for 1,01,36,22,159 shares against 89,70,371 shares on offer, according to BSE.

The portion for retail investors received 70.29 times subscription while the quota for non-institutional investors got subscribed 146.70 times. The qualified institutional buyers (QIBs) part is booked 110.38 times.

Dental restoration units prepared using digital impressions by their domestic laboratory business constituted 62.43%, 48.61%, 36.36%, and 28.11% and by their international laboratory business constituted 61.78%, 55.48%, 27.94%, and 12.37% in the six months ended September 30, 2024, and Fiscals 2024, 2023, and 2022 respectively depicting annual growth.

Laxmi Dental Limited IPO is a book-built issue of ₹698.06 cr. The issue comprises a fresh issue of 0.32 cr shares aggregating to ₹138.00 cr and an offer for sale (OFS) of 1.31 cr shares aggregating to ₹560.06 cr.

The initial public offer of Laxmi Dental IPO has been subscribed 78.55 times on the third day of subscription today, at 14:45 IST, as per BSE data.

The initial share sale received bid for 70,46,07,387 shares against 89,70,371 shares on offer, according to BSE.

The portion for retail investors received 63.46 times subscription while the quota for non-institutional investors got subscribed 129.60 times. The qualified institutional buyers (QIBs) part is booked 58.05 times.

India's dental care market, valued at USD 3.4 Bn in 2023, is expected to grow at 12.6% annually, reaching USD 7.8 Nn by 2030. This growth is driven by the rising prevalence of oral health issues such as dental caries, malocclusion, and periodontal diseases, alongside growing awareness and demand for both general and specialized dental care.

Company has delivered consistent margin expansion on operating level over the last few years. Debt reduction worth ~Rs. 28 cr is expected to support bottomline growth to an extent. We expect future business growth backed by favorable industry dynamics, company’s potential expansion plans with an aim to extend its reach in the global market. Thus, we recommend SUBSCRIBE to the issue.

The initial public offer of Laxmi Dental IPO has been subscribed 55.60 times on the third day of subscription today, at 14:00 IST, as per BSE data.

The initial share sale received bid for 49,87,74,474 shares against 89,70,371 shares on offer, according to BSE.

The portion for retail investors received 57.54 times subscription while the quota for non-institutional investors got subscribed 106.86 times. The qualified institutional buyers (QIBs) part is booked 29.33 times.

• Regulatory Risks: The dental products industry is subject to extensive and dynamic regulations. Any non-compliance or regulatory changes could adversely impact operations. Also, non-compliance with healthcare or trading standards could affect operations.
• Network Risk: Effectively growth in its Dental Network and raising income per dental entity are essential to the company's success. Inadequate cost-effectiveness could have a negative impact on company’s operational and financial outcomes.
• Market Competition: Intense competition from global and local players could pressure margins.

Financially, the valuation is at the higher end, with a P/E of 89.17x as of FY2024 and an estimated P/E of 48.75x for FY2025E, suggesting fair pricing without direct listed competitors for comparison.

The diversified product portfolio, robust professional network, and digital adoption position the company for sustained domestic and international growth. We recommend to SUBSCRIBE to this IPO for long-term gains.

The initial public offer of Laxmi Dental IPO has been subscribed 42.03 times on the third day of subscription today, at 13:00 IST, as per BSE data.

The initial share sale received bid for 37,69,84,608 shares against 89,70,371 shares on offer, according to BSE.

The portion for retail investors received 51.39 times subscription while the quota for non-institutional investors got subscribed 88.31 times. The qualified institutional buyers (QIBs) part is booked 15.76 times.

• India's only integrated dental products company is well-positioned to capture industry tailwinds. 
• Second largest player in the domestic dental laboratory business. 

The company serves a broad range of customers both in India and overseas. The company's customer base primarily consists of:

• Dental clinics
• Dental companies
• Individual dentists

The initial public offer of Laxmi Dental IPO has been subscribed 29.88 times on the third day of subscription today, at 12:03 IST, as per BSE data.

The initial share sale received bid for 26,80,67,976 shares against 89,70,371 shares on offer, according to BSE.

The portion for retail investors received 46.12 times subscription while the quota for non-institutional investors got subscribed 73.22 times. The qualified institutional buyers (QIBs) part is booked 2.80 times. 

• From 2004 to 2024, the company evolved from a dental exports business, receiving its first FDA approval in 2004, to a leader in innovative dental solutions.
• In 2011, it expanded to a larger facility in Mumbai, followed by the incorporation of its USA subsidiary in 2012.
• By 2015, it achieved ISO 13485 certification and further enhanced operations in 2016 with a new advanced laboratory.

• Laboratory Offerings: Custom-made crowns, bridges, implant prostheses, removable prostheses, and veneers.
• Aligner Solutions: Clear aligners, thermoforming sheets, aligner-related products, and 3D printing resins.
• Pediatric Dental Products: Pediatric dental crowns.

The initial public offer of Laxmi Dental IPO has been subscribed 23.61 times on the third day of subscription today, at 11:12 IST, as per BSE data.

The initial share sale received bid for 21,17,50,638 shares against 89,70,371 shares on offer, according to BSE.

The portion for retail investors received 40.13 times subscription while the quota for non-institutional investors got subscribed 57.87 times. The qualified institutional buyers (QIBs) part is booked 96%.

Laxmi Dental uses a vertically integrated company model that covers the whole value chain, from product design and manufacturing to distribution, and employs 2,372 talented workers. Through this integration, the business is able to guarantee cost effectiveness, uphold strict quality control over its products, and provide its clients with superior solutions.

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

The initial public offer of Laxmi Dental IPO has been subscribed 19.16 times on the third day of subscription today, at 10:15 IST, as per BSE data.

The initial share sale received bid for 17,19,01,488 shares against 89,70,371 shares on offer, according to BSE.

The portion for retail investors received 33.41 times subscription while the quota for non-institutional investors got subscribed 46.31 times. The qualified institutional buyers (QIBs) part is booked 84%.

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 only integrated dental products company in India, well-positioned to capture industry tailwinds. 
• Second largest player in domestic laboratory business and largest export laboratory with increasing adoption of digital dentistry. 
• Vertically integrated diverse branded product portfolio. 
• Large Dental Network providing the company with competitive advantage in the market.

With nearly 20 years of experience in the dental laboratory industry, Laxmi Dental has a presence in more than 22,000 dental clinics, dental businesses, and doctors. It is among the biggest exporters from India to the US and the UK. The Indian custom-made crowns and bridges industry is anticipated to increase at a 12% CAGR between FY23 and 30E, surpassing the global market's 8% growth, as shown in the graph below (source: F&S research).

• Strong R&D and technological capabilities enable developing a diverse product portfolio with innovation
• Strong market presence & extending global reach to enhance its growth potential
• Business to drive growth backed by both organic as well as inorganic growth, and favorable industry dynamics
• Aims at leveraging digital platforms and customer centric approach
• Strengthening penetration across Dental Network

Laxmi Dental Limited is India’s only end-to-end integrated dental products company, offering a comprehensive portfolio that includes custom-made crowns and bridges, branded dental products, and pediatric dental crowns.

Laxmi Dental IPO GMP today or grey market premium is +142. This indicates Laxmi Dental share price were trading at a premium of ₹142 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Laxmi Dental share price was indicated at ₹570 apiece, which is 33.18% higher than the IPO price of ₹428.

Based on grey market activity over the past eight sessions, today's IPO GMP is pointing lower and is predicted to continue to do so. Investorgain.com analysts say that the lowest GMP is ₹142, and the highest is ₹165.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.