Laxmi Dental IPO shares to list today after 114x subscription; should you buy, sell or hold?

Laxmi Dental IPO shares to list today after 113x subscription; should you buy, sell or hold?

Shares of Laxmi Dental, which saw an overwhelming 114 times subscription in its Rs 698-crore initial public offering (IPO), are set to list on the exchanges today. The much-awaited debut is scheduled for 10 AM, with analysts anticipating a strong premium over the issue price.

The Laxmi Dental IPO, open for subscription from January 13 to 15, was offered in a price band of Rs 407-428 per share. Backed by OrbiMed, the company operates as a vertically integrated provider of dental solutions, offering a diverse portfolio ranging from custom-made crowns and bridges to aligner solutions and paediatric dental products.

Market observers are keenly watching the listing, with many expecting robust gains on debut. Prathamesh Masdekar, Research Analyst at Stoxbox, projects a 29 percent premium over the upper price band. "Investors who received allotment should consider holding the stock for the medium to long term, given its growth potential," he said.

Masdekar highlighted factors such as the shift from unorganised to organised players in the dental industry, rising awareness around dental aesthetics, and growing demand for metal-free dental products as key drivers for the company's future growth.

Laxmi Dental IPO allotment status: How to check details online via registrar, NSE & BSE; Check latest GMP

'A Cautious Approach'

Narendra Solanki, Head of Fundamental Research, Investment Services at Anand Rathi Shares and Stock Brokers, echoed similar optimism but advised caution. "While the company operates in a niche and growing market segment, the valuation is on the higher side. Based on FY25 annualised earnings, the price-to-earnings ratio stands at 64.6x, which is quite aggressive," he noted.

Solanki recommended that investors book partial profits on listing while considering holding the rest for the long term. "The company's unique positioning as the only vertically integrated dental solutions provider in India, and one of the few globally, justifies its premium valuation," he added.

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Prashanth Tapse, Sr VP Research at Mehta Equities Ltd further expects a healthy listing gain over and above 25 percent of its issue price.

"We recommend conservative allotted investors can think of booking profits above our expectations on listing day. While long term investors should consider to hold it for long-term despite knowing short term volatility post listing & risk in the markets. For non-allotted investors, we advise to accumulate if we get dips post listing due to profit booking attempts."

The company aims to utilise the net proceeds from the IPO for debt repayment, funding capital expenditure, investment in its subsidiary Bizdent Devices Pvt Ltd, and general corporate purposes.

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