Laxmi Dental Share Price Highlights: Stock ends at ₹551 apiece on NSE, 28.7% premium to IPO price

The stock ended listing day at ₹551 on NSE, a 28.7% premium to the IPO price of ₹428, and at ₹551.75 on BSE, a 28.91% premium.

A significant portion of the company's revenue comes from dental products manufactured at six facilities: Three in Mira Road and two in Boisar, Maharashtra, and one in Kochi, Kerala.

• Regulatory Risks: The dental products industry is subject to extensive and dynamic regulations. Any non-compliance or regulatory changes could adversely impact operations. Also, non-compliance with healthcare or trading standards could affect operations.
• Network Risk: Effectively growth in its Dental Network and raising income per dental entity are essential to the company's success. Inadequate cost-effectiveness could have a negative impact on company’s operational and financial outcomes.
• Market Competition: Intense competition from global and local players could pressure margins.

The stock was trading at ₹556.05 per share on NSE, marking a 2.59% increase at 14:42 IST, and at ₹554.90 per share on BSE, showing a 5.09% increase.

• India's only integrated dental products company is well-positioned to capture industry tailwinds.
• Second largest player in the domestic dental laboratory business.

The company serves a broad range of customers both in India and overseas. The company's customer base primarily consists of:

• Dental clinics
• Dental companies
• Individual dentists

• From 2004 to 2024, the company evolved from a dental exports business, receiving its first FDA approval in 2004, to a leader in innovative dental solutions.
• In 2011, it expanded to a larger facility in Mumbai, followed by the incorporation of its USA subsidiary in 2012.
• By 2015, it achieved ISO 13485 certification and further enhanced operations in 2016 with a new advanced laboratory.

The stock was trading at ₹560.20 per share on NSE, marking a 3.36% increase at 13:09 IST, and at ₹560.10 per share on BSE, showing a nearly 6.08% increase.

• Laboratory Offerings: Custom-made crowns, bridges, implant prostheses, removable prostheses, and veneers.
• Aligner Solutions: Clear aligners, thermoforming sheets, aligner-related products, and 3D printing resins.
• Pediatric Dental Products: Pediatric dental crowns.

• The only integrated dental products company in India, well-positioned to capture industry tailwinds.
• Second largest player in domestic laboratory business and largest export laboratory with increasing adoption of digital dentistry.
• Vertically integrated diverse branded product portfolio.
• Large Dental Network providing the company with competitive advantage in the market.

The stock was trading at ₹560.40 per share on NSE, marking a 3.39% increase at 11:54 IST, and at ₹560.65 per share on BSE, showing a nearly 6.18% increase. 

• Strong R&D and technological capabilities enable developing a diverse product portfolio with innovation
• Strong market presence & extending global reach to enhance its growth potential
• Business to drive growth backed by both organic as well as inorganic growth, and favorable industry dynamics
• Aims at leveraging digital platforms and customer centric approach
• Strengthening penetration across Dental Network

The company is set for an impressive market debut on January 20, 2025, with expectations of a 29% premium over its upper price band. We believe that factors such as the shift from the unorganized to the organized segment, greater awareness and adoption of dental aesthetics and a shift towards metal-free products are likely to drive growth for the company. We thus recommend that investors allotted shares consider holding their positions from a medium to long-term perspective.

The stock was trading at ₹575.90 per share on NSE, marking a 6.25% increase at 10:49 IST, and at ₹576 per share on BSE, showing a nearly 10.52% increase.

Despite premium valuations and healthy response, Laxmi Dental listing was heathy in line with our expectations. While considering the volatile market trend, 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 made a good stock market debut, listing for Rs. 542 per share, a significant 26.6% premium over its issue price of Rs. 428. Those who took part in the initial public offering (IPO) may book part profit and hold with stoploss of 480.

Laxmi Dental share price made a bumper debut on the bourses today. On NSE, Laxmi Dental share price opened at ₹542 per share, 26.64% higher than the issue price of ₹428. On BSE, Laxmi Dental share price today opened at ₹528 apiece, up 23.36% than the issue price.

According to the Red Herring Prospectus (RHP), the IPO consists of an OFS of up to 1.31 crore equity shares worth ₹560 crore by promoters Rajesh Vrajlal Khakhar and Sameer Kamlesh Merchant, as well as other shareholders, in addition to a fresh issue of equity shares for up to ₹138 crore.

Laxmi Dental Ltd IPO has seen significant demand, oversubscribed by 114.14 times. The company is set for an impressive market debut today, with expectations of a 29% premium over its upper price band.

While considering the market trend and listing of standard glass lining we are expecting a healthy listing gain over and above 25% of its issue price. Hence we recommend conservative allotted investors can think of booking profits above our expectations on listing day.

Laxmi Dental IPO GMP today or grey market premium is +145. This indicates Laxmi Dental share price were trading at a premium of ₹145 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Laxmi Dental share price was indicated at ₹573 apiece, which is 33.88% higher than the IPO price of ₹428.

The current IPO GMP is going upward and anticipates a robust listing based on the grey market activity over the last 13 sessions. Experts on investorgain.com say that the lowest GMP is ₹119, while the highest is ₹165.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.