The Rs 698-crore IPO of Laxmi Dental saw a massive 113.98 times subscription at the end of Day 3 (January 15). The IPO received bids for nearly 102.24 crore shares, as against the offer size of 90 lakh shares, data on NSE.
Non-institutional investors (NIIs) led the subscription rally. The portion reserved for NIIs saw a whopping 147.52 times subscription on Day 3. Retail investors booked their reserved portion 74.45 times.
Day 3 saw a massive rise in participation from Qualified Institutional Buyers (QIBs). The portion reserved for QIBs was subscribed 110.38 times. This marks a sharp rise from Day 2 when the portion was subscribed only 84%.
Issue Details:
Laxmi Dental has set a price band of Rs 407 to Rs 428 per share for the IPO which entirely comprises a fresh issue of equity shares worth Rs 138 crore and an offer-for-sale (OFS) of 1.3 crore shares worth Rs 560.06 crore by existing shareholders. Investors can bid for a minimum of 33 shares, requiring an investment of Rs. 14,124, and in multiples thereafter.
Grey Market Premium (GMP):
Ahead of the listing, the unlisted shares of the company were trading with a grey market premium (GMP) of around 29.44% at Rs 554 per share, as per data on Investorgain on January 15.
Before the IPO opened for subscription, the dental products company raised Rs 314.1 crore from several institutional investors via anchor book on January 10. Marquee names like Abu Dhabi Investment Authority, Nomura Trust, Goldman Sachs, Eastspring Investments, and Natixis International Funds invested in the company via anchor book.
About the company:
The Mumbai-based company, which makes custom-made crowns and bridges, and branded dental products, aims to utilise fresh issue proceeds for repaying debt, purchasing new machinery, and general corporate purposes. The firm has six manufacturing facilities, three of which are in Mira Road, two in Boisar, and one in Kochi, and further five supporting facilities in Mumbai, Delhi, Bengaluru, and Ahmedabad.
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