Laxmi Dental Limited is coming up with an IPO consisting of a fresh issue of 0.32 crore shares worth INR 138 crores and an offer to sell 1.31 crore existing shares worth INR 560.06 crores. The company aims to reduce borrowings, invest in subsidiaries, purchase machinery, and fund operations. 

Laxmi Dental IPO – Important Dates 

Laxmi Dental Limited IPO – Company Profile 

Laxmi Dental Limited, India’s only integrated dental products company, offers crowns, aligners, and paediatric products, operates six facilities, and is a top, profitable dental solutions provider with over 20 years of expertise. 

India’s only fully integrated aligner company, Laxmi Dental Limited, offers FDA-cleared Illusion Aligners, leveraging extensive manufacturing capabilities and a vast dental network to provide affordable solutions across Tier I-III cities. 

Specialising in paediatric dental products, Laxmi Dental Limited, through Kids-E-Dental LLP, offers innovative solutions like Bioflx crowns, leads India’s market, and distributes globally to 81 countries amid significant industry growth. 

Laxmi Dental Ltd IPO Fundamental Analysis 

Laxmi Dental Limited’s financial analysis reveals a mixed performance. Revenue has increased, reflecting growth, while profitability, liquidity, and financial position also show improvement. However, challenges in inventory turnover and meeting short-term obligations remain. 

• Revenue Trend: The revenue increased from ₹1,368.43 millions in March 2022 to ₹1,616.31 millions in March 2023. The revenue for the current year’s 6-month period ending September 2024 is INR 1,167.80 million. 
• Equity and Liabilities: Both equities and liabilities have shown an increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹(170.83) million in March 2022 to ₹181.97 million by September 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹(0.28) in March 2022 to ₹(0.14) by September 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has increased from (60.47)% to 40.73%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

Laxmi Dental IPO Financial Analysis 

Laxmi Dental Limited IPO Peer Comparison 

Laxmi Dental Limited demonstrates strong financials with positive growth. At the same time, Poly Medicure Limited shows significant revenue, high profitability, and solid market performance, with a greater focus on operational efficiency and overall business expansion. 

Laxmi Dental Ltd IPO Objective 

The main objective of Laxmi Dental Limited is to repay outstanding borrowings, invest in subsidiaries, fund capital expenditures for new machinery, and support Bizdent Devices for further equipment purchases, fostering growth and operational efficiency. 

1. Repayment/prepayment, in whole or in part, of certain outstanding borrowings availed by the company: The company intends to utilise INR 22.98 crores from the Net Proceeds to repay or prepay certain borrowings, reducing debt, improving the debt-to-equity ratio, and facilitating future business growth and expansion opportunities. 

2. Investment in certain Subsidiaries for the repayment/prepayment, in whole or in part, of certain outstanding borrowings: The company plans to utilise INR 4.60 crores from the Net Proceeds for the repayment or prepayment of borrowings by its subsidiaries, Bizdent Devices Private Limited and Signature Smiles Dental Clinic Private Limited, to reduce debt. 

3. Funding the capital expenditure requirements for purchasing new machinery: The company aims to utilise INR 43.50 crores from the Net Proceeds to buy new machinery to enhance quality, efficiency, and operational effectiveness across its divisions, including Vedia Solutions and Illusion Dental Laboratory. 

4. Investment in their Subsidiary, Bizdent Devices Private Limited, for the capital expenditure requirements for the purchase of new machinery: The company will invest INR 25.00 crores from the Net Proceeds in its Subsidiary, Bizdent Devices Private Limited, to fund capital expenditure for new machinery aimed at improving quality and efficiency in deliverables. 

5. General corporate purposes: The company will deploy funds for general corporate purposes, including meeting business fund requirements, strengthening marketing and brand building, covering ongoing contingencies, upgrading technology, and paying creditors and advisory services. 

Laxmi Dental IPO Risks And Challenges 

Laxmi Dental Limited’s risk includes dependence on expanding its Dental Network, market concentration in India, the U.S., and the UK, exposure to legal proceedings, and potential impacts from economic slowdowns, social unrest, and natural calamities. 

• The company’s success depends on expanding and retaining its Dental Network, which drives sales through the B2B2C model. Despite potential risks, marketing, brand-building, and cross-selling strategies are crucial for increasing market share and revenue. 

• Their business is concentrated in India, the U.S., and the UK, exposing them to risks from economic slowdowns, social unrest, natural calamities, and policy changes. Such events could impact operations, finances, and growth. 

• The company and its subsidiaries face ongoing legal proceedings, including criminal, tax, and civil cases. Adverse judgments could impact operations, financials, and reputation. These proceedings may divert management’s attention and resources, affecting business prospects. 

Laxmi Dental Ltd IPO – Industry & Market Potential 

Rising disposable incomes, increased post-pandemic health awareness, and an ageing population are driving healthcare expenditures, including dental care services. By 2050, India’s senior population will significantly increase, boosting demand for specialised healthcare services. 

The Indian healthcare market is led by hospitals (74% share), followed by pharmaceuticals (11.6%), medical devices (4.4%), and diagnostics (2.6%). The medical device segment is expected to grow fastest with a 20.4% CAGR. 

India’s dental care market, valued at US$ 3.4 Bn in 2023, is expected to grow 12.6% CAGR to US$ 7.8 Bn by 2030, driven by rising oral health issues, dental awareness, dental tourism, and organised chains. 

Laxmi Dental Limited IPO – Type of Offer 

Laxmi Dental Limited plans a fresh issue of 0.32 crore shares, seeking INR 138 crore to reduce borrowings, invest in subsidiaries, purchase machinery, and fund operations. Additionally, the company proposes an offer to sell 1.31 crore existing shares worth INR 560.06 crores. 

1. Fresh Issue: The company will issue 0.32 crore new shares to raise capital, aiming to collect INR 138 crores. The company intends to utilise the proceeds from the fresh issue to reduce borrowings, invest in subsidiaries, purchase machinery, and fund operations.
2. Offer for sale: Laxmi Dental Limited is offering to sell 1.31 crore existing shares worth INR 560.06 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:

Laxmi Dental IPO Offer Size 

The offer size of Laxmi Dental Limited is INR 698.06 crores, consisting of a fresh issue of 0.32 crore shares worth INR 138 crores and an offer to sell 1.31 crore existing shares worth INR 560.06 crores. The company aims to reduce borrowings, invest in subsidiaries, purchase machinery, and fund operations. 

Laxmi Dental Limited IPO Allotment Structure 

Laxmi Dental Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for the Laxmi Dental IPO?

To apply for the Laxmi Dental Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Laxmi Dental Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Laxmi Dental Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Laxmi Dental IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Laxmi Dental Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Laxmi Dental Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Laxmi Dental Limited IPO:

● Registrar’s Website: Visit the website of Mufg Intime India Private Limited, the registrar of the Laxmi Dental Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Laxmi Dental Ltd IPO Offer Registrar

The registrar for the Laxmi Dental Limited IPO is Mufg Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

MUFG INTIME INDIA PRIVATE LIMITED 

C-101, 1st floor, 247 Park,

L.B.S Marg, Vikhroli West

Mumbai 400 083, Maharashtra, India

Tel: +91 22 4918 6000/ +91 8108114949

E-mail: [email protected]

Website: www.linkintime.co.in 

Laxmi Dental IPO – FAQs