| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 407 to ₹ 428 | 33 | 13th Jan, 2025 – 15th Jan, 2025 | ₹ 698.06 Cr |
About Laxmi Dental Ltd IPO
Laxmi Dental Ltd. is India’s leading end-to-end integrated dental product company, offering a comprehensive portfolio of dental products. The company operates in three verticals: i) Laboratory Offerings, which include custom-made crowns & bridges; ii) Aligner Solutions, which include dental aligners and related branded products; and iii) Paediatric Dental Products, which include a range of products like pre-formed crowns, Silver Diamide Fluoride (SDF), space maintainers, fissure sealants, etc. The company has existed for more than 20 years, and according to the F&S Report, they are amongst the two largest Indian dental laboratories based on FY24 revenue. Based on the revenue from operations and PAT Margin for FY23 and the products offered, they are the largest and most profitable vertically integrated and indigenous B2B2C dental aligner solutions company. As of September 2024, the company operates six manufacturing facilities spread across 1,47,030 sq. ft.: three in Mira Road, Mumbai, two in Boisar, Mumbai and one in Kochi, Kerala. Both Boisar facilities and one of the Mira Road facility is registered with the US Food & Drug Administration (USFDA).
Objective of the Laxmi Dental Ltd IPO
The net proceeds from the fresh issue will be used towards the following purposes:
- Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company;
- Investment in Subsidiary, Bizdent Devices Pvt. Ltd, for the capex requirements for the purchase of new machinery;
- Funding the capital expenditure requirements for purchase of new machinery for the Company;
- General corporate purposes.
Rationale To Laxmi Dental Ltd IPO
India’s only integrated dental products company is well-positioned to capture industry tailwinds
Laxmi Dental’s portfolio includes custom-made crowns and bridges, branded dental products such as clear aligners, thermoforming sheets, and aligner-related products as part of aligner solutions and pediatric dental products. Primary dental products offered by the laboratory focus on custom-made dental prostheses such as metal-free crowns and bridges, including a range of branded premium crowns under Illusion Zirconia, porcelain fused to metal (PFM) crowns, bridges, and dentures. According to the F&S Report, the Indian market for custom-made crowns and bridges, in terms of retail sales, is estimated to grow from USD 1.4 billion in 2023 to USD 3.1 billion in 2030 at a higher rate of 11.8% compared to the global market, which is estimated to grow from USD 71 billion in 2023 to USD 121.6 billion in 2030 at a rate of 8.0%. The company has also launched iScanPro, branded intraoral scanners to promote digital dentistry. The company deployed more than 160 intraoral scanners in the Indian market to promote digital dentistry. Laxmi Dental stands out as one of the few vertically integrated players globally, with a business model that includes backward integration (manufacturing raw materials) and forward integration (offering treatment planning solutions). The company’s vertically integrated approach contributes significantly to its competitive edge by directly controlling sourcing raw materials. Thus, they are positioned to ensure consistency and quality in the production process with end-to-end capabilities from raw material to distribution.
Second largest player in the domestic dental laboratory business
Laxmi Dental’s laboratory offerings have evolved over 20 years from a team of few members to an integrated dental product company. The laboratory offers custom-made dental prostheses such as metal bridges and crows, including premium crowns (under the ‘Illusion Zirconia’), PFM crowns, bridges and dentures. The dental network has a reach of more than 22,000 dental clinics, dental companies and dentists and cater to over 320 cities nationally. The company is amongst the top two largest Indian dental laboratories by FY24 revenue and was the largest exporter of custom-made dental prosthesis from India, catering to US and UK markets by FY23 revenue. Due to greater emphasis on quality (compliance to regulatory standards) and improved efficiency (adoption of automation and digital workflow), the market is moving towards more professionalization, favouring the growth of organized dental lab networks. Large organized dental laboratories in India would be in a better position to adopt digital workflows and automation tools, invest in technologies like computer-aided design (CAD) and computer-aided manufacturing (CAM), and attract skilled talent, whereas traditional and small laboratories will find it challenging to compete in the market. Dentists prefer organized laboratories over unorganized laboratories due to the availability of a broad and differentiated product portfolio, higher accuracy and compliance with international quality standards and better quality of service due to integrated product offerings. As the dental market continues to professionalize and favour organized dental lab networks, Laxmi Dental is well-equipped to lead the industry with innovative solutions, driving the company’s financial performance.
Valuation of Laxmi Dental Ltd IPO
As of September 2024, Laxmi Dental is among the few vertically integrated players globally and India’s only vertically integrated company. The company has been trying to establish ‘Illusion’ as a well-recognized brand. Its established market presence and experience in manufacturing quality products will help it build and scale future brands. The company also operates through a B2B2C model and has established a sizeable dental network of over 22,000 dental clinics, dental companies and dentists. Further, the company has catered to domestic and global demand by selling its products across 320 Indian cities and 95+ countries between FY2022-H1FY25. Laxmi Dental’s strong relationship with dentists, clinics, and dental companies is a strong entry barrier for new entrants to the Indian dental market. On the financial front, the company reported Revenue/EBITDA CAGR of 18.9%/109.6% during the FY2022-24 period, respectively. Laxmi Dental has also witnessed margin improvement from 4.0% in FY22 to 19.5% in H1FY25, driven by operational efficiencies. The reduction in interest cost following debt repayment is likely to improve profitability further. The issue is valued at a P/E of 89.2x on the upper price band based on FY24 earnings. However, we believe 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, we recommend a SUBSCRIBE rating for the issue.
What is the Laxmi Dental Ltd IPO?
Laxmi Dental IPO is a book built issue of Rs 698.06 crores. The issue is a combination of fresh issue of 0.32 crore shares aggregating to Rs 138.00 crores and offer for sale of 1.31 crore shares aggregating to Rs 560.06 crores. Login to your account now.
How to apply for the Laxmi Dental Ltd IPO through StoxBox?
To apply for the Laxmi Dental Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Laxmi Dental Ltd IPO open?
Laxmi Dental Ltd IPO is opening on 13th January 2025. Apply Now
What is the lot size of the Laxmi Dental Ltd IPO?
The Lot Size of Laxmi Dental Ltd IPO is 33 equity shares. Login to your account now.
When is the Laxmi Dental Ltd IPO allotment date?
The allotment Date for Laxmi Dental Ltd IPO is 16th January 2025. Login to your account now.
When is the Laxmi Dental Ltd IPO listing date?
The listing Date for Laxmi Dental Ltd IPO is 20th january 2025. Login to your account now
What is the minimum investment required for the Laxmi Dental Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,124. Login to your account now
What is the maximum investment allowed for the Laxmi Dental Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 197,736. Login to your account now
What are the risks associated with investing in the Laxmi Dental Ltd IPO?
- The company depends heavily on its reputation and perception of the brands. Any negative publicity or other harm to the brand or failure to maintain and enhance brand recognition and quality standards may materially and adversely affect the reputation, which in turn may have an adverse effect on business, operations, financial condition, and results of operations.
- The company operates through six manufacturing facilities, five of which are located in Mumbai and one in Kerala. Any disruption in manufacturing processes due to natural calamities, fuel shortages, mechanical breakdowns, terrorist attacks, loss of licenses, certifications & permits, regulatory changes, etc., may adversely affect the business, operations, financial condition, and results of operations.
- The company has primarily adopted a B2B2C business model for the sale of products, which means dental products are sold through the dental network to the end consumer, lending credibility to dental products since the dental network recommends them. Any failure to add or retain clinics, companies, or dentists to the network in a cost-effective manner may hurt business, operations, financial condition, and the result of operations.
When will the Laxmi Dental Ltd IPO shares be credited to my Demat account?
The Laxmi Dental Ltd IPO be credited to the account on allotment date which is 17th January 2025. Login to your account now
Where can I find the Laxmi Dental Ltd IPO prospectus?
The prospectus of Laxmi Dental Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Laxmi Dental Ltd IPO?
| IPO Open Date | Monday, January 13, 2025 |
| IPO Close Date | Wednesday, January 15, 2025 |
| Basis of Allotment | Thursday, January 16, 2025 |
| Initiation of Refunds | Friday, January 17, 2025 |
| Credit of Shares to Demat | Friday, January 17, 2025 |
| Listing Date | Monday, January 20, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on January 15, 2025 |
