The IPO of Laxmi Dental will close today for public subscription. The IPO that comes out with a price band of ₹407-428 a share saw a tremendous response from non-institutional investors including retail by subscribing 16 times. The minimum lot size is 33 shares.
The initial public offering of OrbiMed-backed Laxmi Dental received bids for nearly 14.37 crore shares against 89.70 lakh shares on offer. The IPO is a combination of a fresh issue of equity shares for up to ₹138 crore and an OFS of up to 1.31 crore equity shares worth ₹560 crore by promoters — Rajesh Vrajlal Khakhar and Sameer Kamlesh Merchant, and other shareholders, according to the Red Herring Prospectus (RHP).
The Mumbai-based company has reserved not less than 75 per cent of the shares for qualified institutional buyers (QIB), not more than 15 per cent for non-institutional institutional investors (NII), and not more than 10 per cent of the offer for retail investors. The quota reserved for non-institutional investors was subscribed 37.41 times, retail Investors by 29.47 times. The portion reserved for Qualified Institutional Buyers (QIBs) garnered 84 per cent subscription.
As part of IPO exercise, Laxmi Dental collected a little over Rs 314 crore from anchor investors. It allotted 73.39 lakh shares to 31 entities at ₹428 a share to anchor investors who included domestic mutual funds, insurance companies and foreign entities. Among them included Aditya Birla Sun Life Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Kotak MF, Mirae Asset MF, Tata MF, Birla Sunlife Insurance, Max Life Insurance, Abu Dhabi Investment Authority, Nomura, Goldman Sachs, Al Mehwar Commercial Investments and Natixis Investment Managers.
The proceeds from the Fresh Issue will be utilized to support several strategic objectives, including the repayment or prepayment, in full or part, of certain outstanding borrowings by the Company and its subsidiaries. Additionally, the funds will be allocated toward capital expenditure requirements, such as the acquisition of new machinery for the Company and its subsidiary, Bizdent Devices Private Limited. Rest of the amount will be utilized by the company for General Corporate purposes.
Laxmi Dental, an end-to-end integrated dental products company, has a comprehensive portfolio that includes custom-made crowns and bridges, branded dental products like aligner solutions and paediatric dental products.
The company’s shares will be listed on the BSE and NSE.
Nuvama Wealth Management Limited, Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited are the book-running lead managers for the Laxmi Dental IPO. In contrast, Link Intime India Private Ltd functions as the registrar for the offering.
