Laxmi Dental IPO opens for subscription. Check key dates, GMP, price band and review

The initial public offer (IPO) of Laxmi Dental will open for subscription today. The issue, which is a combination of fresh issue of 32.24 lakh shares and an offer for sale (OFS) worth Rs 560 crore, will be available for bidding till January 15.

The company proposes to use the funds raised from the IPO for debt repayment by the company and select subsidiaries, financing capital expenditures for new machinery purchases, investing in the subsidiary Bizdent Devices, and general corporate purposes.

Check price band of Laxmi Dental IPO

Laxmi Dental has fixed a price band of Rs 407-428 per share and at the upper price band, the company plans to raise around Rs 698 crore. Investors can bid for a maximum of 33 shares in one lot and in multiples thereafter.

Laxmi Dental IPO GMP on Day 1

On the issue opening day, Laxmi Dental IPO GMP is robust at Rs 160 per share, which is a premium of 38% over the issue price.

Laxmi Dental IPO review: Should you subscribe?

Analysts advised investors to subscribe to the issue for the long term as the company has diversified product portfolio, robust professional network, and digital adoption.

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"If we attribute FY25 annualized earnings to its post-IPO fully diluted paid-up equity capital, the asking price corresponds to a price-to-earnings (P/E) ratio of 64.65. Based on FY24 earnings, the P/E ratio rises to 130.87, indicating that the issue is priced aggressively," said Bajaj Broking, while assigning a subscribe for long term recommendation.

About Laxmi Dental IPO

Incorporated in July 2004, Laxmi Dental is an integrated dental products company. The company offers custom crowns and bridges, branded dental items like clear aligners and thermoforming sheets, align related products as part of its aligner solutions, and pediatric dental products.

Their product portfolio includes custom crowns and bridges, clear aligners, thermoforming sheets, pediatric dental products, and
more. The company offers thermoforming sheets, biocompatible 3D printing resins, and machines for manufacturing clear aligners under the brand name Tags.

As of September 30, 2024, the company has six manufacturing facilities: three in Mira Road, Mumbai, two in Boisar, and one in Kochi, along with five supporting facilities in Mumbai, Delhi, Bengaluru, and Ahmedabad.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)