Laxmi Dental, a name in the dental products industry, opened its IPO for subscription today, January 13, and will close on January 15. If you are considering applying, here are the details of this IPO and what it means for you.
Laxmi Dental IPO, a mainboard offering has set his price band between the range of Rs 407 to Rs 428 per share.
Laxmi Dental IPO – GMP
As per the recent trend, in the grey market, an unlisted market place, the shares of the company are trading at a premium of Rs 160, projecting an estimated listing of Rs 588 per share, a 37.38% higher over the IPOs upper price band.
Laxmi Dental IPO – Risk factor
As per the DRHP filing, some of the risk factors mentioned by the company in its risk disclosure are as follows:
“Our business success depends on expanding our Dental Network and increasing the wallet share per dental clinic, dental company and dentist. Failure to achieve this in a cost-effective manner could have an adverse effect on our business, results of operations and financial condition.”
“Our business is concentrated in certain jurisdictions, and any loss of business in such regions could have an adverse effect on our business, results of operations and financial condition.”
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“Our business depends heavily on our reputation and perception of our brands. Any negative publicity or other harm to our brand or failure to maintain and enhance our brand recognition and maintain such quality standards may materially and adversely affect our reputation, business, results of operations and financial condition.”
Laxmi Dental IPO – Key details of the issue
Laxmi Dental’s IPO is a book-built issue worth Rs 698.06 crores. This amount is split into two parts, that is, a fresh issue of 0.32 crore shares worth Rs 138.00 crores and an offer for sale of 1.31 crore shares worth Rs 560.06 crores.
After the three day bidding process, the allotment of the shares are tentatively scheduled on January 16 and are expected to be listed on BSE and NSE on January 20.
The minimum lot size is 33 shares. Retail investors need to invest at least Rs 14,124 for one lot.
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