Upcoming IPO: Laxmi Dental To Open Rs 700 Crore Public Issue For Subscription Next Week; Details

The initial public offering (IPO) of Laxmi Dental Limited is set to hit the market next week, offering a significant opportunity for investors. The IPO will open for subscription on January 13, 2025, and remain open until January 15, 2025. The company plans to raise Rs 698.06 crore through this IPO.

IPO Details
Laxmi Dental Limited, a leading integrated dental product company, has outlined the specifics of its IPO:
Price Band: The IPO price has been fixed at Rs 407 to Rs 428 per equity share.
Size: The total issue size is Rs 698.06 crore, comprising Rs 138 crore from fresh share issuance and Rs 560.06 crore through the offer for sale (OFS) route.
Lot Size: Investors can bid in lots of 33 shares each.
Listing: The IPO is set to be listed on both the BSE and NSE, with the likely listing date being January 20, 2025.
Registrar and Managers: Link Intime India Private Limited is the registrar for the IPO, while Nuvama Wealth Management, Motilal Oswal Investment Advisors, and SBI Capital Markets are the lead managers.
Allotment Date: The share allotment is expected to be finalized on January 16, 2025.

Grey Market Premium (GMP)
Ahead of the subscription period, the IPO has been creating buzz in the grey market. According to market observers, Laxmi Dental shares are commanding a premium of Rs 166 in the grey market today. This indicates robust investor interest and suggests a potential for listing gains if demand remains high.

Company Profile
Laxmi Dental Limited is a key player in the integrated dental product market, providing a wide range of dental solutions. The company has established itself as a trusted brand in the healthcare industry, catering to the growing demand for dental products and services in India and abroad.

With the healthcare sector showing growth potential and an increasing focus on oral health, the company is well-positioned to benefit from these trends. The proceeds from the fresh issue of shares, amounting to Rs 138 crore, are expected to be utilized for business expansion, debt reduction, and general corporate purposes.

Offer for Sale (OFS) Component
The larger portion of the IPO-Rs 560.06 crore-is earmarked for the offer-for-sale (OFS) route. This means that existing shareholders, including promoters, will be offloading a part of their stake in the company. While the OFS route does not directly contribute to the company's coffers, it provides an opportunity for retail investors to become stakeholders in a growing enterprise.

Subscription Timeline
The IPO will remain open for bidding from Monday to Wednesday next week, with the following key dates:
Opening Date: January 13, 2025
Closing Date: January 15, 2025 (5:00 PM)
Allotment Finalization: January 16, 2025
Listing Date: January 20, 2025

Investor Considerations
Laxmi Dental's IPO offers an opportunity, particularly given the positive sentiment in the grey market. However, potential investors should keep the following points in mind:
Valuation and Price Band: At the upper end of the price band, the valuation reflects the company's strong fundamentals and growth potential in the dental healthcare sector.
Grey Market Premium: While the Rs 166 GMP is a positive sign, it is not a guaranteed indicator of listing performance.
Long-Term Prospects: The company's focus on innovation and market expansion provides a compelling case for long-term investors.