The Laxmi Dental IPO is set to launch on January 13, 2025, and will be open for subscription until January 15, 2025. With a price band set between ₹407-428, this offering provides investors an opportunity to buy shares in one of India’s leading manufacturers of dental products. Backed by the global investment firm OrbiMed, Laxmi Dental is a significant player in the Indian dental care market.
In this article, we break down everything you need to know about the Laxmi Dental IPO, including the issue details, Grey Market Premium (GMP), price band, lot size, and more.
1. Laxmi Dental IPO Dates: Opening and Closing
The Laxmi Dental IPO will open on January 13, 2025, and close on January 15, 2025. This provides a limited window for investors interested in purchasing shares of Laxmi Dental.
2. IPO Price Band: ₹407 to ₹428 per Share
The price band for the Laxmi Dental IPO has been fixed at ₹407 to ₹428 per equity share. The face value of each share is ₹2. This is a competitive price band for an IPO, and investors need to carefully evaluate the company’s growth potential before making their investment decision.
3. IPO Lot Size: Minimum Investment
The Laxmi Dental IPO lot size is 33 shares, with investors required to apply in multiples of 33 shares thereafter. This means the minimum investment amount for retail investors would be calculated based on the 33 shares in the IPO lot. Investors should factor in the lot size when calculating their investment for the IPO.
4. Anchor Investors Allocation
Anchor investors, who are typically institutional investors, will be allocated their share of the IPO on January 10, 2025. This is an essential event for those looking to gauge the level of institutional interest in the IPO, as anchor investors often signal the strength of the public offering.
5. IPO Offer Details: Fresh Issue and Offer-for-Sale
The Laxmi Dental IPO consists of a fresh issue of equity shares worth ₹138 crore, along with an offer-for-sale (OFS) of 1.3 crore shares, valued at approximately ₹560.05 crore. The offer-for-sale portion will allow existing shareholders, including OrbiMed Asia II Mauritius and promoters like Rajesh Vrajlal Khakhar and Sameer Kamlesh Merchant, to sell their shares.
6. Fund Utilization: Purpose of IPO Funds
The funds raised through the fresh issuance of shares will be used to reduce debt, invest in new equipment, and support general corporate functions. This indicates that Laxmi Dental plans to strengthen its financial position and enhance its manufacturing capabilities.
7. IPO Listing Date: When Will Laxmi Dental Go Public?
The Laxmi Dental IPO shares are expected to be listed on both the BSE and NSE on January 20, 2025. Investors should keep an eye on the listing date to see how the stock performs in the market after its debut.
8. Grey Market Premium (GMP): Indication of Listing Performance
Currently, the Laxmi Dental IPO GMP is ₹165, indicating strong investor interest in the IPO. The GMP suggests that shares are trading at a premium of ₹165 in the grey market, signaling a 38.55% premium over the upper price band of ₹428. A positive GMP typically suggests a successful listing, and analysts are optimistic about Laxmi Dental’s potential in the market.
9. IPO Reservation: Allocation for Different Investor Categories
The Laxmi Dental IPO reservation is as follows:
- 75% of the shares are reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 10% for Retail Investors.
This allocation ensures that there is balanced participation in the offering across various categories of investors, including large institutional buyers and individual retail investors.
10. Competitors and Market Position
Laxmi Dental operates as India’s only comprehensive provider of integrated dental products. It manufactures a wide range of products, including custom-designed crowns and bridges, clear aligners, thermoforming sheets, and products related to pediatric dental care. The company runs six manufacturing plants across India and serves over 22,000 dental clinics in more than 320 cities. Additionally, Laxmi Dental exports its products to over 90 countries, highlighting its strong global presence.
Final Thoughts on Laxmi Dental IPO
Laxmi Dental is a strong player in the dental care industry, with a solid market presence both in India and globally. With the backing of OrbiMed, the company is poised for further growth, making the Laxmi Dental IPO an attractive investment for those looking to participate in the booming healthcare sector. The price band of ₹407 to ₹428 makes it accessible to retail investors, and the positive GMP signals strong demand in the market. However, investors should conduct thorough research and consider the company’s long-term prospects before subscribing.
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