Laxmi Dental Submits Draft Papers to SEBI for Rs 150 Cr IPO

Laxmi Dental Ltd has filed a draft red herring prospectus with SEBI to launch an IPO aimed at raising funds. The offering will consist of a fresh issue worth Rs 150 crore and an offer for sale (OFS) involving up to 12.83 million shares from existing shareholders and promoters.

The OFS includes up to 11.4 million shares from OrbiMed Asia II Mauritius Ltd, 4.23 lakh shares from Sameer Kamlesh Merchant, 2.37 lakh shares from Jigna Rajesh Khakhar, and 1.89 lakh shares from Rajesh Vrajilal Khakhar. Other shareholders contributing are Hasmukh Vrajlal Khakhar, Amrish Mahendrabhai Desai, Parag Jamnadas Bhimjiyani, and Kunal Kamlesh Merchant, each offering 1.42 lakh shares.

The proceeds from the IPO will be utilized to repay debt and fund capital expenditures, particularly for the purchase of new machinery for Laxmi Dental and its subsidiary, Bizdent Devices Pvt Ltd. As of July 2024, the company’s debt stood at Rs 37.58 crore.

The company plans to invest in machinery upgrades to improve service quality and operational efficiency, which will be applied across its main facility and divisions Vedia Solutions and Illusion Dental Laboratory. These locations already have the necessary space and approvals.

Nuvama Wealth Management, Motilal Oswal Investment Advisors, and SBI Capital Markets are the lead managers for the issue.

As of March 2024, Laxmi Dental is India’s only fully integrated dental products company, offering a range of products such as crowns, bridges, clear aligners, and pediatric dental items. With over two decades of brand presence, it is among the top two dental labs in the country, operating six facilities across Mumbai, Kochi, and other cities. In FY24, it posted revenue of Rs 193.56 crore, up from Rs 161.63 crore the previous year.

EBITDA rose to Rs 23.79 crore, and net profit reached Rs 25.23 crore, a turnaround from the previous year’s loss of Rs 4.16 crore.

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