Thu Jan 16 01:55:27 UTC 2025: ## Laxmi Dental IPO Oversubscribed by Over 100 Times on Final Day

**MUMBAI, INDIA** – Laxmi Dental Ltd.’s initial public offering (IPO) concluded Wednesday, significantly exceeding expectations with a final subscription rate of over 113 times. The IPO, which offered shares priced between ₹407 and ₹428, saw robust demand across all investor categories. Non-institutional investors (NIIs) alone subscribed 147 times, while retail investors subscribed 73 times and qualified institutional buyers (QIBs) subscribed 110 times. The total bids received far surpassed the 89.7 million shares on offer.

The three-day IPO raised just over ₹314 crore from anchor investors prior to its opening. The total issue size was ₹698.06 crore, comprising a fresh issue of ₹138 crore and an offer for sale (OFS) of ₹560.06 crore by promoters and existing shareholders, including OrbiMed. Proceeds from the fresh issue will be used for debt repayment, capital expenditure, investment in a subsidiary, and general corporate purposes.

Laxmi Dental, India’s only end-to-end integrated dental products company, boasts a wide product portfolio and a significant presence in both domestic and international markets. The company’s vertically integrated model, covering design, manufacturing, and distribution, allows for cost efficiency and quality control.

While analysts lauded the company’s position in a growing market and its innovative offerings, some expressed concerns about the high valuation, citing a price-to-earnings ratio (P/E) of 76.8x (adjusted for exceptional items) at the upper price band. The significant OFS portion (80% of the issue) also raised concerns for some investors. Despite these concerns, several analysts recommended a long-term investment perspective for risk-tolerant investors.

The grey market premium (GMP) for Laxmi Dental shares was reported as high as ₹165 prior to the IPO close, suggesting a potential listing price significantly above the issue price. However, analysts caution investors to proceed with due diligence before making any investment decisions.

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