Prevest Denpro Limited IPO

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i. Prevest Denpro Limited develop, manufacture and market a comprehensive portfolio of dental materials for diagnosing, treating and preventing dental conditions as well as improving the aesthetics of the human smile.

ii. Their product portfolio covers a wide spectrum of materials for endodontics, prosthodontics, orthodontics, periodontics, restorative dentistry, aesthetic dentistry, and laboratory consumables. In F.Y. 2020-21, we generated total sales of Rs. 2743.94 lakhs, of which approximately 60.24% sales were from markets outside India.

iii. Their products are sold in over 75 countries in the regions of Europe, Asia, South America, the Middle East, and Africa.

iv. Its manufacturing facility is located at Kartholi, Samba (Jammu & Kashmir), comprising of over 27,000 sq. ft. area and has an installed capacity of 200 MT p.a. for manufacturing of dental materials. Further, they are currently expanding its existing manufacturing unit by setting up another manufacturing facility in over 16,000 sq. ft. area adjacent to its existing unit for manufacturing a new line of products that will include hygiene products (sanitizers and disinfectants), oral hygiene products (mouthwashes and mouth rinses), oral care products(medicated ointments, gels and creams for dental treatment) and biomaterials (i.e. bone augmentation materials).

Competitive strengths
i. Wide sales and distribution network
ii. Comprehensive product portfolio
iii. Experienced Promoters with strong management team

Objects of the Prevest Denpro Limited IPO:

The Issue includes a fresh Issue of up to 31,68,000 Equity Shares of the Company 1. Purchase of machineries, equipments and utilities for manufacturing of proposed additional line of products, R&D unit and existing manufacturing operations 2. General Corporate Purpose 3. To meet issue expenses
DRHP of Prevest Denpro Limited IPO
RHP of Prevest Denpro Limited IPO

Prevest Denpro Limited IPO Details:

Open Date: Sep 15 2021
Close Date: Sep 17 2021
Total Shares: 3,168,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 26.61 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 82 - 84 Per Equity Share
Listing At: BSE SME
Listing Date: Sep 27 2021

Promoters And Management:

i. Mr. Atul Modi, is the Chairman, Managing Director & Promoter of the Company. He has been on the Board since the incorporation of the Company. He has completed his Bachelor of Engineering in Mechanical from Bhopal University in 1976. He is a visionary entrepreneur and plays a pivotal role in business planning and development along with the overall management of the Company. He has been recognized as one of the “Managers of the year” by the Socrates Committee, Oxford, the UK in 2016. Under his guidance, the Company has witnessed continuous growth. ii. Mrs. Namrata Modi, is the Whole Time Director, CFO, and Promoter of the Company. She has been on the Board since the incorporation of the Company. She has completed her master of Business Administration (MBA) from Matrix Institute of Business Management in 2020. She has work experience of around 21 years in the Dental industry. She currently oversees and controls the overall day-to-day working, finance function, and general administration including the production and marketing function of the Company. iii. Dr. Sai Kalyan Surapaneni, is the Director of the Company. He has completed his Bachelor of Dental Surgery (B.D.S) from Rajiv Gandhi University of Health Sciences, Karnataka in 2001 and Doctor of Philosophy (Ph.D.) in Conservative Dentistry &Endodonticsfrom Pravara Institute of Medical Sciences, Loni, Maharashtra in 2020. He has a work experience of over16 years as a lecturer/assistant professor in dental institutions and a total work experience of over 18 years. He joined the Company as Director in 2020. He is currently involved in oversees manufacturing operations, design and development of medical devices, quality control, and research and development activities.

Financials of Prevest Denpro Limited IPO:

Particulars (in Lakhs) 2021 2020 2019
Revenue from operations 2,743.94 2,276.93 1,927.74
Cost of material 798.45 704.56 650.55
Changes in inventory -9.07 -5.75 -1.22
Employee Benifit Expense 468.5 451.47 345.56
Other expenses 691.43 616.47 551.27
Operating Profit 794.63 510.18 381.58
OPM% 28.96% 22.41% 19.79%
Other income 207.41 179.03 49.34
Finance costs 18.71 17.6 14.97
Depreciation and amortisation 47.19 43.92 40.33
Profit before tax 936.13 627.7 375.62
Profit for the year 743.96 500.87 299.38

Comparison With Peers:

There are no strict comparable exit in the listed market.

Recommendation on Prevest Denpro Limited IPO:

Review and Recommendation of Prevest Denpro Limited IPO by InvestorZone is 6/10. 1. They develop, manufacture and market a comprehensive portfolio for endodontics, prosthodontics, orthodontics, periodontics, restorative dentistry, aesthetic dentistry and laboratory consumables. 2. They are also planning to setup a new manufacturing plant for new lines of products such as a sanitizers, disinfectants, oral hygiene products, and oral care products. 3. Revenue has grown from 19 Crores to 27 Crores in the last 3 years, this is 20% CAGR Growth. 4. PAT has grown up from 3 Crores to 7.43 Crores in the last 3 years, this is staggering 57% growth. 5. RONW for FY21 is 32% which is very good. 6. P/E on the basis of FY21 results comes out to be 13x which looks ideally priced.

Lead Manager of Prevest Denpro Limited IPO:

  1. Hem Securities Limited

Registrar of Prevest Denpro Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Prevest Denpro Limited EPIP, Kartholi Bari Brahmana, Samba 181133 Jammu & Kashmir, India. Phone: 1923-222774 Email: info@prevestdenpro.com Website: https://www.prevestdenpro.com/

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