Tue Jan 14 10:49:16 UTC 2025: ## Laxmi Dental IPO Oversubscribed on Day Two

**MUMBAI, January 14** – The initial public offering (IPO) of Laxmi Dental Ltd. continued its strong performance on its second day of bidding, closing significantly oversubscribed. While initial reports indicated a 14.26 times oversubscription, later reports revised this figure down to 8.09 times. Regardless, the IPO saw robust demand across investor categories, except for Qualified Institutional Buyers (QIBs), whose portion was subscribed at only 0.44 times. Non-Institutional Investors (NII) and retail investors demonstrated significantly higher interest, with subscription rates of 24.42 times and 23.88 times respectively.

The IPO, which opened on January 13th and closes on January 15th, offers 1.31 crore equity shares at a price band of ₹407-428 per share, raising a total of ₹698.06 crore. This includes a fresh issue of ₹138 crore and an offer for sale (OFS) of ₹560.06 crore by promoters and other shareholders. The company had already secured over ₹314 crore from anchor investors prior to the IPO launch.

Laxmi Dental, a leading dental consumable manufacturer in India and a major exporter, boasts six manufacturing facilities and five support facilities across India. Its facilities meet various international quality standards, including US FDA registration and ISO certifications. The company highlights its vertically integrated business model, spanning from raw material production to distribution, as a key competitive advantage.

While the company’s strong performance and leading market position are attractive, the IPO’s valuation, at a FY24 P/E of 94.6x at the upper price band, remains a point of discussion among analysts. Some analysts express concerns regarding the higher-end valuation and potential risks associated with economic sensitivity and competition. However, others point to the company’s growth potential, driven by factors like increased dental awareness and the shift towards organized dental care in India.

Promoter selling constitutes a significant portion of the offering, with OrbiMed Asia II Mauritius Limited selling 26.12% of the shares.

The grey market premium (GMP) for Laxmi Dental shares is currently reported at ₹142, suggesting a potential listing price significantly higher than the IPO price. However, investors are urged to exercise caution and conduct thorough due diligence before making any investment decisions. The allotment is expected on January 16th, with refunds and crediting of shares to demat accounts on January 17th. Listing is anticipated on January 20th.

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