Laxmi Dental To Invest Rs 68 Crore Of IPO Proceeds In Automation And Expansion
The Laxmi Dental IPO worth Rs 698.06 crore consists of a fresh issue of shares worth Rs 138 crore and an offer for sale of shares worth Rs 560.06 crore.
IPO-bound Laxmi Dental Ltd. has a Rs 68-crore capital expenditure plan for automation, capacity expansion, and acquiring new machinery, said Promoter Sameer Merchant. Proceeds from the offering will be supporting this plan.
This is a critical step in strengthening the company's market position and meeting rising demand in India's dental care sector, Merchant, who is also the chief executive officer and managing director of the company, told NDTV Profit.
The company is a vertically integrated business-to-business-to-company dental alignment firm. It offers end-to-end integrated dental products and has over 20 years of brand presence.
"This investment in automation and new capacity aligns with our growth trajectory," Merchant said. "The company has so far achieved 62% digitisation, and there is tremendous room for growth. As we cross-sell and enhance our offerings, there is potential to grow organically while matching the profile of listed peers," he added.
Rajesh Khakhar, whole-time director and chairman, stressed that the company's current strategy focuses on serving its existing base of 20,000 dentists. "We're not looking to expand this number right now. Instead, the goal is to take maximum wallet share from the dentists we already work with," Khakhar explained.
The public issue worth Rs 698.06 crore consists of a fresh issue of shares worth Rs 138 crore and an offer for sale shares worth Rs 560.06 crore, according to the red herring prospectus.
Rajesh Vrajlal Khakhar and Sameer Kamlesh Merchant are the promoters of the company offloading in the OFS, while OrbiMed Asia II Mauritius Ltd., Jigna Rajesh Khakhar, Hasmukh Vrajlal Khakhar, Amrish Mahendrabhai Desai, Parag Jamnadas Bhimjiyani, and Kunal Kamlesh 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. The issue will be registered with Link Intime India Pvt.
The company will use Rs 19.57 crore to repay or prepay outstanding borrowings and Rs 37.57 crore to purchase new machinery for the company, as per its RHP. It will invest Rs 13.37 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 Issue Details
Issue opens: Jan. 13.
Issue closes: Jan. 15.
Price band: Rs 407-428 per share.
Fresh issue size: Rs 138 crore.
Offer-for-sale: Rs 560.06 crore.
Total issue size: Rs 698.06 crore.
Market value at the upper end of the price band: Rs 2,352 crore.
Lot size: Minimum 35 shares, and then in multiples thereof.
