The 2016 company is involved in the marketing and distribution of a comprehensive range of dental products, including consumables, equipment, instruments, and accessories for treating and preventing dental issues. The company offers its products through a website called Dentalkart.com, where it sells more than 1,000 products from over 300 domestic and international brands. The online portal is backed by the company’s 13000 square feet centralised distribution hub located in Gurugram.
The company also sells a portfolio of more than 30 own brands. It purchases its products from third-party suppliers based on specifications provided by its R&D team. It aims to cover the demand and supply gaps left in the market.
Vasa Denticity Limited IPO Details
Vasa Denticity IPO combines fresh shares and offer for sale (OFS) equities of 31 lakh and 10 lakh, respectively. The total issue size is Rs. 54.07 crore, containing shares with a face value of Rs. 10.
Retail investors can bid for the offer from May 23 to 25, 2023. The price band is fixed at Rs. 121–128 per share.
Vasa Denticity Limited IPO Objective
The objectives of Crayon Advertising IPO are listed below.
- To enhance brand visibility and awareness
- Meet working capital requirements
- Finance general corporate purposes
- To cover offer expenses
Should you invest in Vasa Denticity Limited?
Here are a few important reasons to consider before investing in the IPO:
- Vasa Denticity has projected itself as a one-stop shop for dental treatment and aesthetic needs.
- The company sells its products through its online portal and third-party e-commerce platforms such as Flipkart and Amazon, expanding its sources of revenue.
- The company has built a digital-first omnichannel distribution network, allowing it to cater to customers across India. In FY22, it fulfilled 2 lakh orders from 61,000 customers through the website.
Competitive Peers
The other player as recognised by the company in DRHP is Prevest Denpro Ltd.
Noteworthy Highlights of Vasa Denticity Ltd.
- The revenue from the sales of the company’s own products has increased from Rs. 3542.96 lakhs in Fy22 to Rs. 4076.71 lakhs in the period ending on December 31, 2022.
IPO Financials
| Particulars | Year ending in December 31, 2022 | Year ending in March 31, 2022 |
|---|---|---|
| Revenue from Operations | 8728.59 | 7692.05 |
| Profit After Tax (PAT) | 501.90 | 540.98 |
| PAT Margin | 5.75% | 7.03% |
| EBITDA | 740.43 | 588.04 |
| EBITDA Margin | 8.48% | 7.64% |
| EPS | 4.11 | 4.43 |
| ROE | 45.52% | 90.05% |
Know before investing
Strengths
3It's a digital-first company for all types of products used for dental diagnosis, treatment, and prevention.
It offers a diversified product portfolio of 300+ brands, both domestic and international, and 30+ own brands.
Led by experienced promoters and a management team.
Risks
3The company depends on 3rd parties for manufacturing and supply. Any delay or failure will impact the company’s operations.
Failure to create more brand awareness and expansion will adversely affect the company’s future revenue.
If inventory costs increase relative to sales, it can impact the company’s future profitability.
