Laxmi Dental Limited has launched its Initial Public Offering (IPO) today, January 13, 2025, aiming to raise approximately ₹698 crore. The IPO comprises a fresh issue of ₹138 crore and an Offer for Sale (OFS) of up to 1.31 crore equity shares. The price band for the shares is set between ₹407 and ₹428 per equity share.
Subscription Status:
As of 11:39 AM on the first day of the IPO, the issue has been subscribed 1.46 times. The retail portion has been subscribed 4.79 times, and the Non-Institutional Investors (NII) segment has been filled 2.17 times.
Grey Market Premium (GMP):
Shares of Laxmi Dental are trading at a premium of ₹161 in the grey market today, indicating positive investor sentiment.
Key Dates:
- IPO Opening Date: January 13, 2025
- IPO Closing Date: January 15, 2025
- Allotment Date: January 16, 2025
- Listing Date: January 20, 2025
Investment Considerations:
Laxmi Dental, an integrated dental products company, has demonstrated strong financial growth, with a reported Revenue/EBITDA Compound Annual Growth Rate (CAGR) of 18.9%/109.6% during the FY2022-24 period. The company has also improved its margins from 4.0% in FY22 to 19.5% in H1FY25, driven by operational efficiencies. The issue is valued at a Price-to-Earnings (P/E) ratio of 89.2x on the upper price band based on FY24 earnings. Analysts suggest that factors such as the shift from the unorganized to the organized segment, greater awareness and adoption of dental aesthetics, and a shift towards metal-free products are likely to drive growth for the company. Therefore, a ‘SUBSCRIBE’ rating is recommended for the issue.
Conclusion:
The Laxmi Dental IPO has garnered significant attention from investors, as evidenced by the strong subscription numbers and positive grey market premium. With a robust financial track record and favorable market trends, the IPO presents a promising opportunity for investors looking to participate in the growing dental care industry in India.
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