Laxmi Dental Ltd. has filed its draft red herring prospectus (DRHP) with SEBI to raise up to Rs.150 crore through an initial public offering (IPO). The public offering consists of a fresh issue of equity shares worth Rs.150 crore and an offer for sale (OFS) of up to 12,826,847 equity shares by existing shareholders and promoters.
The OFS will see Rajesh Vrajlal Khakhar and Sameer Kamlesh Merchant, the company’s promoters, selling 189,705 and 426,837 shares, respectively. Other shareholders, including Jigna Rajesh Khakhar, Hasmukh Vrajlal Khakhar, Amrish Mahendrabhai Desai, Parag Jamnadas Bhimjiyani, and Kunal Kamlesh Merchant, will each offload 142,279 shares. OrbiMed Asia II Mauritius Ltd. is offering up to 11.4 million shares in the sale.
Laxmi Dental may also consider a pre-IPO placement, with details to be decided later. The company is working with Nuvama Wealth Management, Motilal Oswal Investment Advisors, and SBI Capital Markets as its book-running lead managers.
The funds raised will go towards repaying Rs.19.57 crore in debt, purchasing new machinery worth Rs.37.57 crore, and repaying Rs.13.37 crore in debt from its subsidiary, Bizdent Devices. Another Rs.35.1 crore will be used for capital expenditures, including acquiring new subsidiaries.
Laxmi Dental Ltd. is a big name in India’s dental product space, offering everything from crowns and aligners to pediatric products. With 20+ years in the market, it operates six facilities. The company’s revenue rose to Rs.193.56 crore in FY24, with a net profit of Rs.25.23 crore, compared to a net loss of Rs.4.16 crore in the previous year. EBITDA also saw growth, increasing to Rs.23.79 crore from Rs.8.96 crore in FY23.
Conclusion: In conclusion, with the IPO, Laxmi Dental plans to reduce debt and boost its operations, positioning itself for growth in the future. Additionally, with Rs.37.57 crore dedicated to purchasing new machinery and Rs.35.1 crore set aside for capital expenditure, Laxmi Dental is positioning itself for the market.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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