Vasa Denticity Limited IPO
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i. Vasa Denticity is in the business of marketing and distribution of a comprehensive portfolio of dental products including consumables, instruments, equipment, and accessories for diagnosing, treating and preventing dental conditions as well as improving the aesthetics of the human smile through our online portal “Dentalkart.com”.
ii. They operate an online channel housing approximately 300 domestic and international brands with a comprehensive product range of more than 10,000 dental products.
iii. Through their website and mobile application – “Dentalkart.com”, they sell a broad range of dental products including dental consumables such as adhesives, filling materials, and impression materials; dental equipment such as chairs, x-ray machines, and autoclaves; and dental instruments such as forceps, probes, and mirrors.
iv. Apart from third party brands, the company also market and sell under its own private label portfolio of cost-effective, high-quality dental products in the areas of orthodontics, endodontics and oral surgery such as Metal Bracket Kit, EDTA (Ethylenediaminetetraacetic acid), dental enstrument etc.
v. The company also have a portfolio of more than 30 owned brands, which are manufactured/procured from third parties based on the specifications built by us through our dedicated research and development team. F
Competitive Strengths
i. A one stop shop for Dental products with a diverse range of products across customer preferences
ii. Digital-first omnichannel distribution
iii. Efficient distribution Network
iv. Founder-led company supported by a professional management team
Objects of the Vasa Denticity Limited IPO:
The Company proposes to utilize the funds which are being raised through the Fresh Issue towards funding the following objects:
1. To Meet Working Capital Requirements;
2. Expenditure to enhance visibility and awareness of the brands
3. General Corporate Purposes;
4. To meet Offer Expenses.
Vasa Denticity Limited IPO Details:
| Open Date: | May 23 2023 |
| Close Date: | May 25 2023 |
| Total Shares: | 4,224,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Built Issue IPO |
| Issue Size: | 54.07 Cr. |
| Lot Size: | 1000 Shares |
| Issue Price: | ₹ 121-128 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | Jun 02 2023 |
Promoters And Management:
i. Dr.Vikas Agarwal, is one of the Promoter and chairman & Managing Director of the Company. He has been associated with the Company since incorporation. He has completed his Bachelor of Dental Surgery from University of Delhi, in 2011. He has a work experience of around 10 years in the field of Dental Industry. He is looking after core management of the company and entrepreneur, active and enthusiastic in business activities. He is primarily responsible for the performance and supervision of technical, administrative and day-to-day operations of the Company, including but not limited to developing strategic plans, promotion of revenue, profitability and growth of the Company.
ii. Sandeep Aggarwal, is one of the Promoter and the Whole Time Director & Chief Financial Officer (CFO) of the Company. He has been associated with the Company since incorporation. He has completed his Bachelor of Technology in Computer Science & Engineering from the LNM Institute of Information Technology, Jaipur, Rajasthan in 2013 He has a work experience of over 10 years in the Dental Industry. He is playing vital role in formulating administration and Accounting, Financial, Taxation and Legal operations and effective implementation of the same. He is responsible for the expansion and overall management of the business of the Company and his leadership abilities have been instrumental in leading the core team of the Company.
iii. Akanksha Aggarwal, is the Non-Executive Director of the Company. She has been appointed as Non-Executive Director of the Company w.e.f. March 01, 2023. She has completed her Bachelor of Dental Surgery (BDS) in Dental Sciences from Swami Vivekanand Subharti University, Meerut, Uttar Pradesh, in 2013. She has over 8 years of experience in the field of dental industry including over 5 years’ experience as a practicing dentist and as a Non- Executive Director of the Company, she is responsible for providing her expertise for growth and expansion of the Company
Financials of Vasa Denticity Limited IPO:
A) Balance Sheet
B) P&L Statement
C) Cash Flow Statement
| Particular (Lakh) | 2020 | 2021 | 2022 |
| Equity Share Capital | ₹20 | ₹20 | ₹20 |
| Reserves | ₹7.20 | ₹39 | ₹580 |
| Borrowings | ₹64 | ₹197 | ₹326 |
| Trade Payables | ₹291 | ₹281 | ₹507 |
| Other Liability | ₹98 | ₹152 | ₹511 |
| Total Liability | ₹481 | ₹691 | ₹1,945 |
| Fixed Assets Block | ₹32 | ₹44 | ₹79 |
| CWIP | ₹0.00 | ₹0.00 | ₹0.00 |
| Investments | ₹0.00 | ₹0.00 | ₹0.00 |
| Other Assets | ₹9 | ₹14 | ₹150 |
| Total Non-Current Assets | ₹42 | ₹58 | ₹229 |
| Receivables | ₹79 | ₹76 | ₹135 |
| Inventory | ₹228 | ₹277 | ₹993 |
| Cash and Cash Balance | ₹49 | ₹114 | ₹155 |
| Other Assets | ₹81 | ₹164 | ₹431 |
| Total Current Assets | ₹439 | ₹632 | ₹1,716 |
| Total Assets | ₹481 | ₹691 | ₹1,945 |
| Particular (Lakh) | 2020 | 2021 | 2022 |
| Sales | ₹3,041 | ₹4,007 | ₹7,692 |
| Sales Growth | 0.00% | 31.73% | 91.96% |
| COGS | ₹2,428 | ₹3,376 | ₹5,770 |
| COGS % of Sales | 79.85% | 84.26% | 75.01% |
| Gross Profit | ₹612 | ₹630 | ₹1,921 |
| Gross Margins | 20.15% | 15.74% | 24.99% |
| Employee Benefit & Other Expenses | ₹590 | ₹581 | ₹1,326 |
| Employee+Other Sales % | 19.40% | 14.51% | 17.25% |
| EBITDA | ₹22 | ₹49 | ₹595 |
| EBITDA Margins | 0.75% | 1.23% | 7.74% |
| Interest Cost | ₹8.89 | ₹6.42 | ₹49.91 |
| Interest %of Sales | 0.29% | 0.16% | 0.65% |
| Depreciation | ₹7.86 | ₹9.28 | ₹32.56 |
| Dep %of Sales | 0.26% | 0.23% | 0.42% |
| EBIT Margins | 0.49% | 1.00% | 7.31% |
| Other Income | 3 | 10 | 22 |
| Earnings Before Tax | ₹9.42 | ₹44.27 | ₹534.57 |
| EBT % Sales | 0.31% | 1.10% | 6.95% |
| Tax | ₹0.02 | ₹11.69 | -₹6.41 |
| Effective Tax Rate | 0.21% | 26.41% | -1.20% |
| PAT | ₹9.40 | ₹32.58 | ₹540.98 |
| NPM | 0.31% | 0.81% | 7.03% |
| No. of Equity Shares | 170.66 | 170.66 | 170.66 |
| Earning Per Share | ₹0.05 | ₹0.19 | ₹3.17 |
| EPS Growth % | 0% | 28% | 1568% |
| Dividend Per Share | ₹0 | ₹0 | ₹0 |
| Dividend Payout Ratio | 0% | 0% | 0% |
| Retained Earnings | 100% | 100% | 100% |
| Particular (Lakh) | 2020 | 2021 | 2022 |
| Cash-Flow From Operations | 79.87 | -45.71 | 39.65 |
| Cash-Flow from Investing | -41.43 | -128.79 | -57.33 |
| Cash-Flow from Financing | -6.47 | 126.24 | 79.14 |
| Net Cash Flow | ₹49.55 | ₹1.29 | ₹62.75 |
Comparison With Peers:
| Name | CMP Rs. | No. Eq. Shares Cr. | Debt Rs.Cr. | Cash End Rs.Cr. | EV Rs.Cr. | Sales Rs.Cr. | EV / EBITDA | EBITDA % | P/E | Sales Var 3Yrs % | Profit Var 3Yrs % |
| Prevest Denpro | 424 | 1.2 | 0 | 39 | 470 | 50 | 21.75 | 39% | 32.43 | 30.19 | 46.47 |
| Dental Kart | 128 | 1.706 | 2.66 | 2.2 | 218 | 76 | 2.9 | 8% | 32 | 70 | 350% |
Recommendation on Vasa Denticity Limited IPO:
Review and Recommendation of Dental Care SME IPO by IZ team is 5/10
1. The company operates as a marketing and distribution company specialising in dental products. They run an online portal called Dentalkart.com, offering a wide range of dental products, including consumables, instruments, equipment, and accessories.
2. Dentalkart.com provides access to over 10,000 dental products from approximately 300 domestic and international brands. The company successfully delivered over 200,000 orders across India in the fiscal year 2021-22.
3. Their centralized distribution hub in Gurugram, India, spanning 13,000 sq. ft, serves as a logistical center for fulfilling orders. They prioritize quality control and have a dedicated team responsible for inspecting sourced products.
4. For Fiscal 2022 and nine months period ended December 22, the revenue from sale of owned brand products were Rs. 35 Cr and Rs. 40 Cr respectively which constituted 46.06% and 46.71% of total revenue from operations. So, ~54% products are sold for third party brands.
5. Average Revenue per order value in first 9MFy23 is ~Rs.3600 which is quite decent and reason why they are profitable.
6. Revenue has increased from 30 Cr in Fy20 to 76 Cr in Fy22. Good growth in revenue.
7. EBITDA margins were stagnate at around 1% till 2021, however, with better scale, the EBITDA margins shoot up to 7.31% and 8% in Fy22 and 9MFy23 respectively. This is the typical thing happens in platform business.
8. The IPO is priced at P/E of 32x which looks fully priced in as compare to peer i.e. Prevest Denpro.
9. Due to the scarcity of main board IPOs and the consequent surge in demand for SME IPOs, it is anticipated that the listing day may yield substantial returns in dental care SME IPO.
Lead Manager of Vasa Denticity Limited IPO:
Registrar of Vasa Denticity Limited IPO:
Company Address:
Vasa Denticity Limited
Khasra No. 714, Village,
P.O. Chattarpur,
South Delhi-110074
Phone: +91 85273 60456
Email: cs@dentalkart.com
Website: http://www.dentalkart.com/
Discussion on Vasa Denticity Limited IPO:
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1. For Fiscal 2022 and nine months period ended December 22, the revenue from sale of owned brand products were Rs. 35 Cr and Rs. 40 Cr respectively which constituted 46.06% and 46.71% of total revenue from operations. So, ~54% products are sold for third party brands.
2. 97% of the business is coming from online.
3. Average Revenue per order value in first 9MFy23 is ~Rs.3600 which is quite decent and reason why they are profitable.
4. No. of orders served in first 9MFy23 is ~2.37 lakh means monthly orders are ~26k. In Fy20, monthly order was 7.6k. So, good growth in the last 3 years.
1. The company operates as a marketing and distribution company specializing in dental products. They run an online portal called Dentalkart.com, offering a wide range of dental products, including consumables,instruments, equipment, and accessories.
2. Dentalkart.com provides access to over 10,000 dental products from approximately 300 domestic and international brands. The company successfully delivered over 200,000 orders across India in the fiscal year 2021-22.
3. Their centralized distribution hub in Gurugram, India, spanning 13,000 sq. ft, serves as a logistical center for fulfilling orders. They prioritize quality control and have a dedicated team responsible for inspecting sourced products.
4. In addition to offering third-party brands, the company markets and sells its own private label dental products, focusing on orthodontics, endodontics, and oral surgery. These products are cost-effective and of high quality. They also provide after-sales service for their products.
5. The company has expanded its operations internationally, catering to markets such as Malaysia, United Arab Emirates, Saudi Arabia, Australia, Kuwait, and the USA. They utilize a dedicated fulfillment center and third-party logistics services to serve these markets.
6. Overall, the company’s business model revolves around providing a comprehensive range of dental products through their online platform. They prioritize quality control, customer service, and efficient distribution to meet the needs of dentists in India and internationally.