Laxmi Dental IPO sees 5x subscription on Day 1, retail portion booked 12x

laxmi dental

The Rs 698-crore IPO of Laxmi Dental saw over 5 times subscription by the end of Day 1 (January 13). The IPO received bids for nearly 4.74 crore shares, as against the offer size of 90 lakh shares, data on NSE showed.

The subscription was led by retail investors, whose portion was subscribed around 12 times. The portion reserved for non-institutional investors was subscribed 10.85 times. The portion reserved for Qualified Institutional Buyers (QIBs) was booked 13 percent and is yet to be fully subscribed.

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.

Ahead of the listing, the unlisted shares of the company were trading with a grey market premium (GMP) of around 30% at Rs 555 per share, as per data on Investorgain on January 13.

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.

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.