Laxmi Dental IPO shares are set to be listed today following an overwhelming 114x subscription rate
Laxmi Dental IPO, a company that recently witnessed an overwhelming 114 times subscription in its Rs 698-crore initial public offering (IPO), is poised to be listed on the exchanges today. The highly anticipated debut is scheduled for 10 AM, with analysts predicting a significant premium over the issue price.
The Laxmi Dental IPO, which was open for subscription from January 13 to 15, was offered in a price range of Rs 407-428 per share. With the backing of OrbiMed, the company functions as a vertically integrated provider of dental solutions, offering a wide range of products from custom-made crowns and bridges to aligner solutions and pediatric dental products.
Market experts are eagerly awaiting the listing, with many anticipating substantial gains on its debut. Prathamesh Masdekar, a Research Analyst at Stoxbox, forecasts a 29 percent premium over the upper price band. He advises investors who have been allotted shares to consider holding onto the stock for the medium to long term due to its growth potential.
Masdekar emphasized factors such as the transition from unorganized to organized players in the dental industry, increasing awareness of dental aesthetics, and the rising demand for metal-free dental products as key drivers for the company’s future growth.
However, Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, shared a similar optimistic view but urged caution. While acknowledging the company’s presence in a niche and expanding market segment, he pointed out that the valuation is on the higher end. With a price-to-earnings ratio of 64.6x based on FY25 annualized earnings, Solanki considers it quite aggressive.
Solanki suggests that investors should consider taking some profits upon listing, while also holding onto some shares for the long term. The company’s unique position as the only vertically integrated dental solutions provider in India, and one of the few globally, justifies its premium valuation.
Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd, anticipates a healthy listing gain of over 25 percent of the issue price.
For conservative investors who were allotted shares, it may be wise to consider taking profits above our expectations on the listing day. Long-term investors should hold onto their shares despite potential short-term volatility post-listing and market risks. For non-allotted investors, it is recommended to accumulate shares if there are dips post-listing due to profit booking attempts.
The company plans to use the net proceeds from the IPO for debt repayment, funding capital expenditure, investing in its subsidiary Bizdent Devices Pvt Ltd, and general corporate purposes.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.