Laxmi Dental IPO: OrbiMed-backed ₹698-crore IPO mobilises ₹314 crore from anchor investors ahead of subscription

Laxmi Dental IPO: Laxmi Dental Ltd mobilised ₹314 crore from anchor investors ahead of its IPO subscription opening for bidding. The mainboard initial public offering (IPO) of India’s sole end-to-end integrated dental products provider will open for its three-day subscription period for all D-Street investor groups on Monday, January 13, and closes on Wednesday, January 15.

The Mumbai-based company allotted 73.39 lakh shares to 31 entities at ₹428 per equity share, aggregating the transaction size to ₹314.12 crore. According to a BSE circular on Friday, the anchor round witnessed participation from domestic mutual funds, insurance companies and foreign entities. 

Also Read: Orbimed-backed Laxmi Dental IPO to open on January 13, price band set at ₹407-428 per share; check issue details, more

Aditya Birla Sun Life Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Kotak MF, Mirae Asset MF, Tata MF, Birla Sunlife Insurance, Max Life Insurance, Abu Dhabi Investment Authority, Nomura, Goldman Sachs, Al Mehwar Commercial Investments and Natixis Investment Managers, among others, were allotted shares in the anchor round of the OrbiMed-backed public issue. 

Laxmi Dental IPO Details

Laxmi Dental’s IPO includes the issuance of new equity shares worth ₹138 crore, in addition to an offer-for-sale (OFS) of 1.3 crore shares valued at ₹560.05 crore from existing shareholders, which include promoters Rajesh Vrajlal Khakhar, Sameer Kamlesh Merchant, and the investor OrbiMed Asia II Mauritius.

The company has reduced the fresh issuance amount from ₹150 crore and increased the OFS portion from 1.28 crore equity shares. Global investment firm OrbiMed Asia II Mauritius will offer 1.16 crore equity shares in this issue, representing 88.8 per cent of the total offer-for-sale amount, up from the 1.14 crore shares indicated in the earlier draft documents.

Also Read: Laxmi Dental IPO to open on Monday: 10 key things to know from RHP before you subscribe to ₹698 crore issue

The promoters and promoter group owned a 46.56 per cent stake in the leading B2C dental aligner company, while public shareholders held a 53.44 per cent stake. According to the red herring prospectus, the floor and cap prices are 203.50 times and 214 times the face value of the equity shares, respectively. 

The price-to-earnings ratio based on diluted EPS for FY24 at the higher end of the price band is as high as 79.65, and at the lower end of the price band, it is 83.76 times, which is lower than the industry average of 94.02 times. The price band has been fixed in the range of ₹407 to ₹428 per equity share of the face value of ₹2. 

The lot size is 33 equity shares, and thereafter, it will be in multiples of 33 equity shares. The net proceeds from the fresh issue will be used for repayment of debt, funding of capital expenditure requirements and new equipment, investment in its subsidiary Bizdent Devices Pvt Ltd, and general corporate purposes.

Also Read: Jaipur-based NBFC Laxmi India Finance files DRHP with SEBI for IPO

Laxmi Dental IPO has reserved not less than 75 per cent of the shares for qualified institutional buyers (QIB), not more than 15 per cent for non-institutional institutional investors (NII), and not more than 10 per cent of the offer for retail investors.

Laxmi Dental IPO’s basis of allotment of shares will be finalised on Thursday, January 16. The company will initiate refunds on Friday, January 17. The shares will be credited to the Demat account of allottees on the same day following the refund. Laxmi Dental’s share price will likely be listed on BSE and NSE on Monday, January 20.

Nuvama Wealth Management Limited, Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited are the book-running lead managers for the Laxmi Dental IPO. In contrast, Link Intime India Private Ltd functions as the registrar for the offering.

Also Read: Laxmi Dental IPO opens on Monday: GMP, issue details, 10 key things to know

Laxmi Dental Company Details

Laxmi Dental is an end-to-end integrated dental products company with a comprehensive portfolio that includes custom-made crowns and bridges, branded dental products like aligner solutions, and paediatric dental products. It is the second largest player in the domestic laboratory business and the largest export laboratory with increasing adoption of digital dentistry.

The company offers a diverse array of dental products and is recognized as India’s only comprehensive provider of integrated dental products as of September 2024, according to an F&S Report. The promoters are Rajesh Vrajlal Khakhar, Sameer Kamlesh Merchant, and Dharmesh Bhupendra Dattani.

Their product range includes custom-designed crowns and bridges, popular dental items such as clear aligners, thermoforming sheets, various products associated with aligners as part of their aligner solutions, and offerings for pediatric dental care. The company manufactures its dental products across six facilities, covering a total area of 147,029.63 square feet.

As of September 30, 2024, the company operates six manufacturing plants: three located in Mira Road, Mumbai, two in Boisar, and one in Kochi, in addition to five support facilities situated in Mumbai, Delhi, Bengaluru, and Ahmedabad. Its dental network comprises over 22,000 clinics and dentists across more than 320 cities nationwide.

Under the brand Taglus, the company offers thermoforming sheets, biocompatible 3D printing resins, and machines for manufacturing clear aligners. It boasts a strong presence in domestic and global markets and exports to over 90 nations. According to the red herring prospectus (RHP), its publicly traded competitor is Poly Medicure Ltd, which has a P/E ratio of 94.02.