Shares of Laxmi Dental Ltd rallied 4 percent to Rs 502.75 per share on Monday, July 21, as the six-month lock-in period for certain pre-IPO shareholders ended today, freeing up a significant chunk of equity for potential trade.
According to analysis by Nuvama Alternative & Quantitative Research, nearly 2.06 crore shares—or about 37 percent of the company’s outstanding equity—are set to become eligible for trading following the expiry of the lock-in. While these shares can now be sold in the open market, it does not necessarily mean that they will be, as the decision ultimately lies with the shareholders.
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As of the March quarter, promoters held a 41.7 percent stake in the dental products company, with the remainder distributed among institutional and retail investors. Mutual funds owned 11.89 percent, with names like HSBC MF, HDFC MF, and Invesco MF among the key holders.
Investor sentiment around the stock has been upbeat lately. Brokerage Motilal Oswal initiated coverage on Laxmi Dental last week with a ‘buy’ rating, pegging a base-case upside of 26 percent.
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In its bullish scenario, the firm projected the stock could climb to Rs 750, implying gains of up to 75 percent from current levels. Following the bullish call from the domestic brokerage, the stock rallied 12 percent during the week, pushing it above its IPO issue price of Rs 428 per share.
At about 9:20 am, shares of the company were trading at Rs 498.3, higher by 3.3 percent from the last close on the NSE. Laxmi Dental shares have rallied over 17 percent in the last month.
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