Laxmi Dental IPO Subscribed 5.3 Times On Day 1; Check GMP, Price Band And More
The price band for Laxmi Dental IPO has been set in the range of Rs 745 to Rs 785 per share.
Laxmi Dental Ltd.'s Rs 698.1-crore initial public offering opened on Monday and has been subscribed 5.30 times. The three-day IPO consists of a fresh issue of Rs 138 crore and an offer for sale of Rs 560.1 crore, according to the red herring prospectus.
The grey market premium of Laxmi Dental's IPO has dipped to Rs 120 as of 4:26 p.m., according to InvestorGain. This implies shares of the company will likely list at Rs 548 apiece, indicating a 28.04% premium to the upper end of the price band.
The price band has been set in the range of Rs 745 to Rs 785 per share. The market value at the upper end of the price band is Rs 2,352 crore, as per NDTV Profit's calculations.
Rajesh Khakhar and Sameer Merchant are the promoters offloading in the OFS, while OrbiMed Asia II Mauritius Ltd., Jigna Khakhar, Hasmukh Khakhar, Amrish Desai, Parag Bhimjiyani and Kunal Merchant are the other selling shareholders.
Nuvama Wealth Management Ltd., Motilal Oswal Investment Advisors Ltd. and SBI Capital Markets Ltd. are the book-running lead managers for the issue, which will be registered with Link Intime India Pvt.
The equity shares are proposed to be listed on the BSE and the National Stock Exchange.
Issue Details
Issue opens: Jan. 13.
Issue closes: Jan. 15.
Issue price: Rs 407–428.
Fresh issue: Rs 138 crore.
Offer for sale: Rs 560.1 crore.
Total issue size: Rs 698.1 crore.
Market value at upper end of price band: Rs 2,352 crore.
Lot size: 35 shares.
Business
Laxmi Dental is a leading player in the Indian dental laboratory industry with over 20 years of experience. In the last financial year, the company ranked among the top two largest dental laboratories in India based on revenue, according to an F&S Report.
The company's product offerings include custom-made crowns and bridges, clear aligners, thermoforming sheets and aligner-related products as part of its aligner solutions, as well as pediatric dental products. It manufactures its products across six facilities.
Laxmi Dental stands out in the export sector, being the largest exporter of custom-made dental prostheses in India, with a primary focus on markets in the US and the UK.
Use Of Proceeds
The company will use Rs 19.6 crore to repay or prepay outstanding borrowings and Rs 37.6 crore to purchase new machinery for the company, as per its RHP.
It will invest Rs 13.4 crore for the repayment or prepayment of certain outstanding borrowings in its subsidiaries and Rs 35.1 crore for capital expenditure or purchase of new subsidiaries in the company.
Laxmi Dental IPO Day One Subscription Status
The Laxmi Dental IPO has been subscribed 5.30 times as of 5:30 p.m. on Monday.
Qualified institutional buyers: 0.13 times or 13%.
Non-institutional investors: 10.87 times.
Retail investors: 12.48 times.
Grey Market Premium
The grey market premium of Laxmi Dental's IPO has dipped to Rs 120 as of Jan. 13, 4:46 p.m., according to InvestorGain. This implies shares of the company will likely list at Rs 548 apiece, indicating a 28.04% premium to the upper end of the price band.
The GMP is not an official price quote for the stock and is based on speculation.
Watch IPO Adda
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
