Laxmi Dental Gets SEBI’s Approval for an IPO

Laxmi Dental, a fully integrated company specialising in dental products, boasts an extensive range of offerings, which includes bespoke crowns and bridges, as well as branded dental items such as aligner solutions and products for children.

About IPO

Laxmi Dental Ltd has received approval from SEBI to proceed with raising capital through an initial public offering (IPO), as reported by the market regulator on 16 December 2024. According to the announcement, Laxmi Dental, which submitted its initial IPO documents to SEBI in September, received the necessary observation on December 12.

In the language of SEBI, receiving an observation indicates the regulatory body’s approval to launch the public issue. The planned IPO consists of a new issue of equity shares valued at ₹150 crore, along with an offer for sale (OFS) of 1.28 crore shares by the promoters and other stakeholders, as detailed in the draft red herring prospectus (DRHP).

Investors Offloading 

The promoters, Rajesh Vrajlal Khakhar and Sameer Kamlesh Merchant, alongside the investor OrbiMed Asia II Mauritius, will be among seven selling shareholders participating in the offer-for-sale.

The promoters possess a 46.56% stake in the company, while public shareholding accounts for 53.44%, assuming complete conversion of convertible securities, which includes a 46.26% stake held by OrbiMed Asia II Mauritius.

Utilisation of Funds

The funds will be used for the full or partial repayment/prepayment of certain outstanding borrowings incurred by the company. Investment will also be made in a particular subsidiary for the repayment/prepayment of those borrowings. Additionally, the funds will cover capital expenditure needs for the procurement of new machinery for the company. 

Investment will also be made in its subsidiary, Bizdent Devices Pvt Ltd, for capital requirements pertaining to the acquisition of new machinery. Lastly, the funds will be allocated for general corporate purposes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.