Laxmi Dental shares list at 23% premium over issue price

Laxmi Dental Ltd on Monday saw a decent stock market debut as the stock got listed at Rs 528 on BSE, a premium of 23.36 per cent over its issue price of Rs 428 (upper price band). The dental products player received a strong response from the investors during its three-day bidding process.

The initial public offering (IPO) of Laxmi Dental was open for bidding between January 13 and January 15. It had offered its shares in the price band of Rs 407-428 per share with a lot size of 33 shares. The company raised a total of Rs 698.06 crore from its IPO, which includes a fresh share sale of Rs 138 and an offer-for-sale (OFS) of up to 1,30,85,476 equity shares.

The IPO was overall subscribed a whopping 114.42 times, thanks to an all-round bidding which attracted bids worth Rs 44,000 crore. The quota for qualified-institutional bidders (QIBs) was subscribed 110.30 times. The portion for non-institutional investors (NIIs) was booked 147.95 times, while allocation for retail investors was booked 76.24 times during the bidding process.

The company reported a net profit of Rs 22.74 crore with a revenue of Rs 117.9 crore for the six months ended on September 30, 2024.

Over the past three years, it has posted an average EPS of Rs 1.55, from both continued and discontinued operations) and an average return on net worth of 22.77 per cent. The issue is priced at a price-to-book value (P/BV) ratio of 33, based on its net asset value (NAV) of Rs 12.97 as of September 30, 2024, Bajaj Broking said.

Motilal Oswal Investment Advisors, Nuvama Wealth Management and SBI Capital Markets were the book running lead managers of the IPO, while Link Intime India was the registrar.