Laxmi Dental, a name in the dental products industry, opened its IPO for subscription today, January 13, and will close on January 15. If you are considering applying, here are the details of this IPO and what it means for you.

Laxmi Dental IPO, a mainboard offering has set his price band between the range of Rs 407 to Rs 428 per share.

Laxmi Dental IPO – GMP

As per the recent trend, in the grey market, an unlisted market place, the shares of the company are trading at a premium of Rs 160, projecting an estimated listing of Rs 588 per share, a 37.38% higher over the IPOs upper price band.

Laxmi Dental IPO – Risk factor

As per the DRHP filing, some of the risk factors mentioned by the company in its risk disclosure are as follows:

“Our business success depends on expanding our Dental Network and increasing the wallet share per dental clinic, dental company and dentist. Failure to achieve this in a cost-effective manner could have an adverse effect on our business, results of operations and financial condition.”

“Our business is concentrated in certain jurisdictions, and any loss of business in such regions could have an adverse effect on our business, results of operations and financial condition.”

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“Our business depends heavily on our reputation and perception of our brands. Any negative publicity or other harm to our brand or failure to maintain and enhance our brand recognition and maintain such quality standards may materially and adversely affect our reputation, business, results of operations and financial condition.”

Laxmi Dental IPO – Key details of the issue

Laxmi Dental’s IPO is a book-built issue worth Rs 698.06 crores. This amount is split into two parts, that is, a fresh issue of 0.32 crore shares worth Rs 138.00 crores and an offer for sale of 1.31 crore shares worth Rs 560.06 crores.

After the three day bidding process, the allotment of the shares are tentatively scheduled on January 16 and are expected to be listed on BSE and NSE on January 20.

The minimum lot size is 33 shares. Retail investors need to invest at least Rs 14,124 for one lot. Small and Non-Institutional Investors (sNII) need to invest Rs 2,11,860 for 495 shares and big Non-Institutional Investors (bNII) should invest Rs 10,02,804 for 2,343 shares.

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“The company ranks among the top two dental laboratories in India by revenue and is the leading exporter of dental products. We believe that going forward company’s growth factor could be driven by trends such as the changing regulatory requirements in the medical devices sector helps transition from unorganized to organized players, increasing awareness and demand for dental aesthetics, and the growing preference for metalfree dental products. Hence considering all parameters, we recommend the issue can be consider as “SUBSCRIBE for LONG TERM”,” said Anand Rathi research in an IPO note.

Laxmi Dental IPO – Anchor investors and fundraising

The company has raised Rs 314.13 crore from anchor investors ahead of the IPO launch.

Apart from this, the company plans to use the funds raised from this issue for various purposes, such as repayment of borrowings, capital expenditure, investing in subsidiaries and general corporate purposes.

About Laxmi Dental

Founded in 2004, Laxmi Dental is a company in the dental products sector. The company manufactures a range of dental products, including custom crowns and bridges, clear aligners, thermoforming sheets, pediatric dental products, aligner solutions. It serves both the retail and healthcare industries, focusing on providing high-quality dental products.