Laxmi Dental aligns well in its niche and is building scale, but offer pricing aggressive
integrated dental products company with presence in India and overseas. It is rolling out an initial public offering of ₹698 crore comprising a fresh issue of ₹138 crore and an offer for sale of ₹560 crore that dilutes the promoter shareholding from 46.5% to 42.6%. Of the issue proceeds, ₹27.5 crore will be used to repay borrowings and ₹68.3 crore for funding capex.
Business: Incorporated in 2004, the company manufactures a range of branded dental products ranging from crowns, bridges, and aligners to thermoforming sheets, intraoral scanners and paediatric dental products. It is the largest and most profitable vertically integrated and indigenous B2B2C dental aligner solutions company.
The Mumbai-based company has six manufacturing facilities and has a reach across 22,000 dental clinics, dental companies and dentists. For the six months ended September, its two main business segments of laboratory products contributed 63% to its total revenues and aligner solutions 31%. The company earns 67% of its revenues from India, 19% from the United States, 7% from the United Kingdom and the remaining from other countries.
Financials and Growth Prospects: The company's financial performance was impacted during the pandemic years, with the business posting losses in FY22 and FY23. However, since then, the company's performance has improved smartly with revenues rising by 20% and the operating profit before interest and taxes (Ebitda) more than doubling from FY23 to FY24. The company's profitability has been steadily
