Laxmi Dental IPO has been one of the most expected IPOs from the market lately, and it had already drawn lots of attention before its launch itself because of its leadership in dental products. It is India's only end-to-end integrated provider of dental products, with an excellent portfolio diversification, exceptional financial performance, and a powerful export footprint. Laxmi Dental IPO awaits investors who will be interested to tap into a booming dental care market.
About Laxmi Dental
Laxmi Dental is a pioneer in the dental products space, offering a comprehensive range of solutions, from custom-made crowns and bridges to clear aligners, thermoforming sheets, pediatric dental products, and much more.
Founded over 20 years ago, the company has carved out a niche for itself in the domestic and international markets, serving clients across the USA, UK, and Europe.One of the two largest dental laboratories in India by revenue in FY2023. India's largest exporter of custom-made dental prostheses in FY2023, with significant revenues from the US and UK. A preferred partner for one of the largest Dental Service Organizations (DSOs) in the USA, serving over 1,650 clinics. A vast network of over 20,000 dental clinics and dentists between FY2022 and FY2024.
Fresh Issue and Offer for Sale
The Laxmi Dental IPO includes a fresh issue of equity shares amounting to ₹138 crore and an offer for sale of up to 1.31 crore equity shares by promoters and existing shareholders, including OrbiMed Asia II Mauritius Ltd. The current shareholding structure is such that the promoters and promoter group hold 46.56% and public shareholders hold 53.44%.
The proceeds from the fresh issue are primarily kept for a number of strategic objectives which include the repayment or prepayment of certain borrowings for strengthening the company balance sheet, capital expenditure for the acquisition of new machinery to enhance operational efficiency, investment in subsidiaries such as Bizdent Devices Pvt. Ltd. for capital needs. In addition, part of the proceeds will be used for general corporate purposes to support the company's overall growth and sustainability goals.
Financial Performance: Strong Growth and Turnaround
Laxmi Dental's financial performance shows strong growth and profitability, making it an attractive opportunity for investors. In FY2024, the company reported revenue growth of 19.75% at ₹193.5 crore as compared to ₹161.6 crore in FY2023. Major portions of revenue were from exports, which contributed 32.54% to the total. The US alone contributed 19.41%. The company has returned to profitability during FY2024 with a net profit of ₹25.2 crore, and the loss at ₹4.16 crore from FY2023.
This indicates financial strength is supported by very strong operational strategy and growth opportunity. The major source of the growth in revenue came from selling more branded dental products and the laboratories. With this, it has set itself up for a higher growth momentum.
Why to Invest in Laxmi Dental IPO?
- Integrated Operations: End-to-end provider ensuring cost-efficiency and quality control. Significant export revenue from key markets like the US and Europe.
- Diverse Portfolio: Comprehensive dental solutions, including clear aligners, crowns, and pediatric products.
- Proven Expertise: Over 20 years in the industry, trusted by leading global dental organizations.
- Technological Leadership: Continuous innovations and investments in advanced dental technologies.
- Market Growth: Situated in an unrelenting expanding dental market across the globe, mainly due to growing awareness in oral hygiene. High demand for clear aligners and custom prosthetic appliances
IPO Timeline and Key Players
The Laxmi Dental IPO is headed with a robust team of financial and operational facilitators who will make the process smooth and efficient. Book Running Lead Managers Nuvama Wealth Management, Motilal Oswal Investment Advisors and SBI Capital Markets have taken extensive experience and credibility in the issuance process. These shares will be listed on the premier stock exchanges in India namely the BSE and NSE to ensure easier access to the investor for the purposes of trade, thereby adding market visibility and credibility to the company.
Conclusion
The Laxmi Dental IPO presents an exceptional investment opportunity in the niche, high-growth industry. Its business model, being an integrated one, and with strong financial turnaround and dominance in the domestic and international markets, puts it on the growth track.
Whether you’re an individual investor or an institutional participant, this IPO could be a valuable addition to your portfolio, particularly if you’re looking to leverage the growth potential of the dental products market.
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