Laxmi Dental Limited IPO

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They are India’s only end-to-end integrated dental products company, offering a diverse range of dental solutions. Their portfolio includes:
i. Custom-made crowns and bridges
ii. Branded dental products, such as clear aligners, thermoforming sheets, and aligner-related products
iii. Paediatric dental products

With over 20 years of presence, they are among the top two largest Indian dental laboratories based on revenue for Fiscal 2024. Additionally, they are the largest and most profitable vertically integrated B2B2C dental aligner solutions company, as per revenue from operations and PAT Margin in Fiscal 2023.

International Leadership in Exports
They are the largest Indian exporter of custom-made dental prostheses, with primary markets in the US and UK. Their global reach and adherence to stringent quality standards, such as US FDA compliance and ISO 13485:2016 certifications, position us as a trusted supplier in the international market.

Technological Advancements in Digital Dentistry
They have embraced digital dentistry with the launch of iScanPro, branded intraoral scanners for digital impressions, which are currently utilized by 264 dentists. Dental restorations prepared using digital impressions constituted:
i. 48.61% of total units sold in the domestic market
ii. 55.48% of total units sold in the international market in Fiscal 2024

Network and Reach
Over the last two decades, they have built a vast network encompassing 22,000+ dental clinics, companies, and dentists. Their integrated approach ensures a seamless supply of high-quality dental products to meet the needs of both domestic and international markets.

Future Growth Prospects

The Indian dental products market is poised for significant growth, driven by:
i. Increasing demand for premium and custom-made dental products
ii. Advancements in digital dentistry and the adoption of intraoral scanners
iii. Transition from fragmented to organized players, owing to stricter regulatory standards

Their continued focus on innovation, quality assurance, and customer-centric solutions ensures their leadership position in this evolving market.

Objects of the Laxmi Dental Limited IPO:

Objects of the Fresh Issue Our Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects: i. Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Company. ii. Investment in certain Subsidiaries for the repayment/prepayment, in full or in part, of certain outstanding borrowings. iii. Funding the capital expenditure requirements for purchasing new machinery for the Company. iv. Investment in our subsidiary, Bizdent Devices Private Limited, is needed for the capital expenditure requirements for the purchase of new machinery. v. General corporate purposes. Total number of share issue :- i. Fresh issue is 32,24,299 shares, ii. Offer for sale is 1,30,85,467 shares.

Laxmi Dental Limited IPO Details:

Open Date: Jan 13 2025
Close Date: Jan 15 2025
Total Shares: 1,63,09,766
Face Value: ₹ 2 Per Equity Share
Issue Size: 698.06 Cr.
Lot Size: 33 Shares
Issue Price: ₹ 407 - 428 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jan 20 2025

Promoters And Management:

Rajesh Vrajlal Khakhar, Promoter, Chairperson, and Whole-Time Director of the Company, manages business partnerships with leading international customers and oversees business development. He is also a director at Bizdent Devices Private Limited and holds over 30 years of experience. An alumnus of Narsee Monjee College, Mumbai, he was honored with the ICONS 2020-2021 certificate by The Economic Times for his contributions to dentistry. Sameer Kamlesh Merchant, Promoter, Managing Director, and CEO of the Company, leads business strategy, operations, financial performance, and management. He is also a designated partner at Kids-E-Dental LLP and a director at Bizdent Devices Private Limited. A dental mechanic graduate from SDM College, Dharwad, he has over 20 years of experience and has driven diversification, digital initiatives, and technology transformation for the Company. He has earned multiple certifications in dental technology and was honored with the ICONS 2020-21 award by The Economic Times for his contributions to dentistry. Sumona Chakraborty, a Non-Executive, Non-Independent Director of the Company and nominee of OrbiMed Asia II Mauritius Limited, holds a B.Tech in Biotechnology from NIT Warangal and a PGDM in Finance from S.P. Jain Institute, Mumbai. With over 10 years of experience, she is currently a Director at OrbiMed Advisors India Private Limited and has previously worked with Avendus Capital, Equirus Capital, and Verity Knowledge Solutions.

Financials of Laxmi Dental Limited IPO:

 
Particulars ( in million ) FY24 Fy23 Fy22
Revenue from Operations 1,935.55 1,616.31 1,368.43
Other Income 17.09 22.13 12.27
Total Income (A) 1,952.64 1,638.44 1,380.70
Cost of Material Consumed 464.18 306.28 306.37
Purchase of Stock-in-Trade 38.35 100.7 100.58
Change in Inventories of Finished Goods -17.64 10.99 -10.39
Employee Benefits Expenses 715.11 653.37 530.78
Finance Costs 49.54 40.94 35.67
Depreciation and Amortization Expenses 119.36 109.94 83.98
Other Expenses 497.65 455.33 386.96
PAT 179.41 -44.49 -170.83

Comparison With Peers:

They have mentioned Polymedicure as peer. But the business model is different. Poly Medicure is a medical devices company with product portfolio comprises of more than 130 SKUs of medical devices in the product verticals of infusion therapy, oncology, anesthesia and respiratory care, urology, gastroenterology, blood management and blood collection, surgery and wound drainage, dialysis, central venous access catheters, veterinary medical devices, and others. So, comparison is vague.

Recommendation on Laxmi Dental Limited IPO:

Registrar of Laxmi Dental Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Laxmi Dental Limited Office No. 103, Akruti Arcade, J. P. Road, Opposite A.H. Wadia High School Andheri (West), Mumbai, 400058 Phone: +91 226143799 Email: co.sec@laxmidentallimited.com Website: https://www.laxmidentallimited.com/

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