Laxmi Dental IPO: Public Issue Subscribed 54x On Final Day, GMP Hints Stellar Listing; Key Dates & Details

The initial public offering (IPO) of Laxmi Dental, a leading B2C dental aligner company in India, has garnered attention from investors as it closes today, January 15. The company aims to raise Rs 698.06 crore through its public issue, with a price band set at Rs 407-428 per share.

Subscription Status
As of 1:40 pm on the final day, the Laxmi Dental IPO was subscribed 54 times, reflecting robust demand across all investor categories. Investors bid for 48.43 crore shares, significantly exceeding the 89.70 lakh shares on offer. Retail investors subscribed 56.93 times, Non-Institutional Investors (NII) recorded a 105.25 times subscription, and Qualified Institutional Buyers (QIBs)subscribed 27.38 times.

Grey Market Premium (GMP)
In the grey market, Laxmi Dental shares are trading at a premium of Rs 142, indicating a potential listing price of Rs 570. This suggests a 33.18% premium over the upper IPO price of Rs 428. Although the premium has dipped slightly from its earlier peak of Rs 160, the consistent grey market activity reflects optimism about the stock's debut performance.

It is important to note that grey market premiums are speculative indicators and can fluctuate based on market sentiment.

IPO Structure & Objectives
The Laxmi Dental IPO consists of a fresh issue of 0.32 crore shares worth Rs 138 crore and an offer for sale (OFS) of 1.31 crore shares aggregating Rs 560.06 crore. Notably, under the OFS, investor OrbiMed Asia II Mauritius Ltd will offload a portion of its stake.

The proceeds from the fresh issue will be allocated to repayment or prepayment of certain outstanding borrowings for the company and its subsidiaries, capital expenditure for purchasing new machinery to enhance production capacity, including for its subsidiary Bizdent Devices Private Limited, and general corporate purposes.

Investor Allocation
The IPO reserves 75% of the net offer for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 10% for retail investors.

Ahead of the IPO, Laxmi Dental raised Rs 314.13 crore from anchor investors on January 10, showcasing strong pre-IPO demand. The minimum lot size for retail investors is 33 shares, requiring a minimum investment of Rs 14,124 at the upper price band.

Key Dates & Listing Details
Allotment finalization: Expected on January 16, 2025.
Listing date: Tentatively set for January 20, 2025, on both the BSE and NSE.

About Laxmi Dental
Founded as one of India's leading dental laboratories, Laxmi Dental operates six state-of-the-art manufacturing facilities, with three in Mira Road, two in Boisar, and one in Kochi. These units span a total area of 146,804.42 square feet.

The facilities at Boisar adhere to USFDA quality system regulations, while those in Mira Road and Boisar hold ISO certifications. Supporting facilities are located in Mumbai, Delhi, Bengaluru, and Ahmedabad, ensuring robust operational coverage. In terms of revenue, Laxmi Dental ranks among the top two dental laboratories in India for FY23.