Laxmi Dental IPO — Price Band, Issue Details, Allotment, Listing Date, Financials, Risks And More: DRChoksey

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Deven Choksey Report

Laxmi Dental Ltd. will launch its initial public offering on January 13 and the offer closes for subscription on Jan. 15. India’s only end-to-end integrated dental product company has fixed the price band in the range of Rs 407 to 428 per share. The minimum order lot for bidding is 33.

The Rs 698.06 crore IPO consists of a fresh issue of 32 lakh shares worth Rs 138 crore and an offer-for-sale of 1.31 lakh shares totalling Rs 560.06 crore.

The allotment for Laxmi Dental IPO is expected to be finalised on Jan. 16.

The shares will be listed on both the National Stock Exchange and the BSE on  Jan 20.

Object of the offer

1. Repayment of borrowings,

2. Investment in subsidiaries,

3. Funding Capex,

4. General corporate purposes.

Outlook and Valuation:

Laxmi Dental stands out as India’s only end-to-end integrated dental products company. Over the years, it has consistently expanded its production capacity and diversified its product portfolio. With increasing awareness of oral health, rising disposable incomes, and advancements in dental technologies, the demand for cosmetic dentistry procedures like teeth whitening and clear aligners is growing rapidly.

Positioned to benefit from these industry tailwinds, Laxmi Dental plans to allocate approximately Rs 700 million from IPO proceeds towards capex out of which approximately Rs 380 million would be deployed in FY26.

Historically, the company has achieved a five times asset turnover. The share of branded products in its revenue has risen significantly, from 18% in FY22 to 40% in FY24, contributing to margin expansion.

Looking ahead, Laxmi Dental is well-positioned with planned capex and a strategic shift toward branded products. However, the absence of long-term contracts introduces uncertainty to near-term growth prospects. At a valuation of 93 times, the valuation appears expensive. Hence, we assign a "Neutral" rating.

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