Laxmi Dental IPO: Big bang in the grey market, golden opportunity for investors
Lakshmi Dental, a dental products manufacturer, has recently attracted a lot of attention through its IPO. The company has raised more than ₹314 crore through the anchor book, and its premium in the grey market has reached ₹166. This indicates that this IPO is getting tremendous support from investors. In this article, we will understand in detail the IPO of Lakshmi Dental, the business of the company, and its future prospects.
Lakshmi Dental: Company Introduction and Business Lakshmi Dental is a leading manufacturer of dental products and equipment in India. The company manufactures high quality dental products using cutting edge technology.
What products does the company deal in?Lakshmi Dental mainly deals in the following areas:
Dental Implants Durable and biocompatible implants for replacement of teeth.Designed for precise fitting and long term stability.
Orthodontic appliances Braces and aligners, which help to correct teeth and improve structure.
Dental consumables Filling materials, crowns, bridges, and other consumables.
Dental chairs and equipment Chairs, scanning machines, and other equipment for modern dentistry.
3D printing and digital technology Software and 3D printing technology for digital dental solutions.
IPO Details Laxmi Dental aims to raise ₹700 crore from the market through its IPO.
Issue Price: ₹428-₹458 per share
Lot Size: 32 shares
IPO Dates:
Opening: 9 January 2025
Closing: 11 January 2025
Listing Date: 17 January 2025
Bidding Category:Retail Investors
Qualified Institutional Buyers (QIBs)
Non-Institutional Investors
Grey Market Premium (GMP) Laxmi Dental IPO is getting tremendous response in the grey market.
Grey Market Premium (GMP): ₹166
Listing Price based on Premium:Issue Price ₹428 + Premium ₹166 = ₹594
This figure shows that investors are expecting strong returns from this IPO.
Company Financial Position The strong financial position of Lakshmi Dental is its main highlight.
FY 2023 Revenue: ₹1,200 Crore
Net Profit: ₹240 Crore
EBITDA Margin: 22%. The company has consistently generated profits over the past few years, making it a safe choice for investors.
Investors’ View Many big investors have shown interest in this IPO. Many renowned mutual funds and FIIs invested while raising ₹314 crore in the anchor book.
Anchor Investors:HDFC Mutual Fund
SBI Mutual Fund
Nomura
BlackRock
This shows that big investors have faith in the company.
Use of Funds The funds raised from the IPO will be primarily used for the following purposes:
- Expansion of manufacturing plants
- R&D (research and development)
- expenditureRepayment of debt
- Marketing and branding
Future of Dental Market India’s dental care market is growing rapidly.
Market size: ₹15,000 crore (in 2023)
Growth rate: 12% (CAGR 2023-2030)
Lakshmi Dental is poised to take full advantage of this growing market.
Is this IPO right for you?
Pros:
- Strong financials: The company’s profits and growth are stable.
- Grey market response: The premium of ₹166 reflects investor confidence.
- Industry edge: The growth of the dental market is beneficial for the company.
- Cons:
- Market risk: The listing of the IPO may change depending on the grey market premium.
- High valuation: Some investors may consider the issue price of the company a bit expensive.
Notes before investing
Risk tolerance: If you are willing to take risks with high-returns, then this IPO is for you.
Long-term vision: The stable performance of the company makes it an attractive option for the long term.
Diversification: Diversify your portfolio and include this IPO in it.
conclusion: Lakshmi Dental’s IPO can be a great opportunity for investors. The company’s business strategy, grey market premium, and financial stability make it an attractive investment option. However, do market research and consult a financial advisor before investing.
Disclaimer: This article is written for information and educational purposes only. The data and suggestions provided herein are not sufficient for making investment-related decisions. Before investing in any IPO or investment, thoroughly evaluate your financial situation and risk tolerance. Consulting a financial advisor is highly recommended to understand the market risks associated with investing. The author and publisher will not be responsible for any financial losses.
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