The Rs 698-crore IPO of Laxmi Dental saw an encouraging response from the first day of subscription as the issue was subscribed fully within 90 minutes on January 13. The company received bids for around 1.13 crore shares against an offer size of 90 lakh shares, subscribing 1.25 times by 11:30 AM.
Retail investors spearheaded the enthusiasm, bidding aggressively to subscribe to as much as 4.26 times their portion. Non-institutional investors subscribed to 1.76 times their reserved portion, while there is no movement in the segment for Qualified Institutional Buyers for now.
Key IPO Details
- Price Band: Rs 407 to Rs 428 per share.
- Structure: The IPO consists of a fresh issue of equity shares worth Rs 138 crore and an offer-for-sale (OFS) of 1.3 crore shares amounting to Rs 560.06 crore.
- Lot Size: Investors must bid for a minimum of 33 shares, which requires an investment of Rs 14,124, and can bid in multiples thereafter.
Strong Grey Market Premium (GMP)
Pre-listing, the grey market premium of the unlisted shares of Laxmi Dental was a stunning 37% ahead of the listing and was quoted at Rs 588 per share on January 13, reflecting extraordinary interest among investors.
The company had raised Rs 314.1 crore from anchor investors on January 10. Marquee global investors such as Abu Dhabi Investment Authority, Nomura Trust, Goldman Sachs, Eastspring Investments and Natixis International Funds had participated in the anchor book.
Mumbai-based Laxmi Dental deals in custom-made crowns, bridges, and branded dental consumables. The company has six manufacturing units along with five support facilities across Mumbai, Delhi, Bengaluru, and Ahmedabad.
The proceeds from the fresh issue would be used to repay debt, add advanced machinery, and general corporate purposes that will enable the company to strengthen its operations and scale further. With such a promising debut, Laxmi Dental is sure to attract more investors as the IPO progresses.
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Source: Moneycontrol
News Desk
