Prevest Denpro SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Sep 2021 – 17 Sep 2021
- Listing date
- 27 Sep 2021
- Face value
- ₹10 per share
- Issue price
- ₹84 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹26.61 Cr
- Market cap at offer price
- ₹101 Cr
- Promoter holding
- 100.00% → 73.60% pre-issue → post-issue
- ISIN
- INE0GAO01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- EPIP, Kartholi, Bari Brahmana, Samba, Jammu and Kashmir
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 9,02,400 | — | — |
| Market maker | 1,60,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹84
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,34,400 |
| S-HNI (min) | 2 | 3,200 | ₹2,68,800 |
| S-HNI (max) | 7 | 11,200 | ₹9,40,800 |
| B-HNI (min) | 8 | 12,800 | ₹10,75,200 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹101 Cr |
About Prevest Denpro SME
Prevest Denpro Limited was incorporated on May 05, 1999 under the Companies Act, 1956 with the Registrar of Companies, Jammu & Kashmir (CIN: U85199JK1999PLC001969). The company develops, manufactures and markets a comprehensive portfolio of dental materials for diagnosing, treating and preventing dental conditions as well as improving the aesthetics of the human smile. Its product portfolio covers a wide spectrum of materials for endodontics, prosthodontics, orthodontics, periodontics, restorative dentistry, aesthetic dentistry and laboratory consumables. The company has a distribution network comprising 53 dealers spread over 16 states and 2 Union Territories in India and 91 overseas agents spread over 75 countries in Europe, Asia, South America, Middle East and Africa. The company is expanding its existing manufacturing unit in Samba, Jammu & Kashmir to manufacture new product lines including hygiene products (sanitizers and disinfectants), oral hygiene products (mouth washes and mouth rinses), oral care products (medicated ointments, gels and creams for dental treatment) and bio-materials (bone grafting materials and membranes).
Company Analysis
from RHPPrevest Denpro Limited develops, manufactures and markets a comprehensive portfolio of dental materials for diagnosing, treating and preventing dental conditions across endodontics, prosthodontics, orthodontics, periodontics, restorative dentistry, aesthetic dentistry and laboratory consumables, with planned expansion into hygiene products, oral care products and bio-materials.
Prevest Denpro Limited was incorporated on May 05, 1999 under the Companies Act, 1956 with the Registrar of Companies, Jammu & Kashmir (CIN: U85199JK1999PLC001969). The company develops, manufactures and markets a comprehensive portfolio of dental materials for diagnosing, treating and preventing dental conditions as well as improving the aesthetics of the human smile. Its product portfolio covers a wide spectrum of materials for endodontics, prosthodontics, orthodontics, periodontics, restorative dentistry, aesthetic dentistry and laboratory consumables. The company has a distribution network comprising 53 dealers spread over 16 states and 2 Union Territories in India and 91 overseas agents spread over 75 countries in Europe, Asia, South America, Middle East and Africa. The company is expanding its existing manufacturing unit in Samba, Jammu & Kashmir to manufacture new product lines including hygiene products (sanitizers and disinfectants), oral hygiene products (mouth washes and mouth rinses), oral care products (medicated ointments, gels and creams for dental treatment) and bio-materials (bone grafting materials and membranes).
Objects of the Issue
- Purchase of machineries, equipments and utilities for manufacturing of proposed additional line of products, R&D unit and existing manufacturing operations ₹1801.80 lakhs p.23
- General Corporate Purpose ₹577.23 lakhs p.23
- To meet Issue Expenses ₹282.09 lakhs p.23
- Purchase of machineries, equipments and utilities for manufacturing of proposed additional line of products, R&D unit and existing manufacturing operations ₹1801.80 lakhs p.77
- General Corporate Purpose ₹577.23 lakhs p.77
- To meet issue expenses ₹282.09 lakhs p.77
Issue Structure
- Total Issue
- 31,68,000 Equity Shares aggregating to ₹2661.12 lakhs
- Fresh Issue
- 31,68,000 Equity Shares of face value of Rs. 10 each
- Price Band
- ₹82/- (Floor Price) to ₹84/- (Cap Price)
- Lot Size
- 1600 Equity Shares
- Face Value
- Rs. 10/- per Equity Share
Business Model
The company earns revenue from the manufacture and sale of dental materials and consumables. In F.Y. 2020-21, approximately 60.24% of sales were from markets outside India. A significant portion of income is dependent on sales of products in the categories of endodontics (27.8%), cements & liners (29.1%) and composites (21.6%). The top ten customers accounted for 40.12% of revenue from operations in F.Y. 2020-21. The company does not have long-term supply agreements with dealers and overseas agents but secures intent letters from key dealers and international agents containing estimated purchase amounts.
Business Segments
SWOT Analysis
- • Comprehensive product portfolio across multiple dental material categories(p.23)
- • Established international distribution network across 75 countries(p.28)
- • Significant export revenue generation at 60%+ of sales(p.30)
- • Strong revenue growth trajectory(p.24)
- • FDA clearance for key dental cement products(p.30)
- • Wide geographic distribution network(p.105)
- • Comprehensive product portfolio across dental specialties(p.104)
- • Strong financial performance and high profitability(p.105)
- • Experienced promoter management with deep industry expertise(p.104)
- • International regulatory certifications and approvals(p.104)
- • Academic and institutional collaborations(p.104)
- • Strong export presence(p.104)
- • Comprehensive product portfolio addressing majority of dentists' clinical needs(p.174)
- • Strong export presence in 75+ countries across multiple continents(p.174)
- • International quality certifications (ISO 13485:2016 and EU CE mark)(p.174)
- • Experienced promoters with 42+ years cumulative dental industry experience(p.174)
- • Strong financial performance with 67% growth in PAT and improving margins(p.177)
- • Collaboration with reputed dental universities and license from Sree Chitra Tirunal Institute(p.174)
- • Heavy dependence on key customers for revenue(p.33)
- • Concentration of revenue in few product categories(p.33)
- • High supplier concentration without long-term contracts(p.33)
- • Single manufacturing location concentration in Samba, J&K(p.33)
- • No product liability insurance in place(p.34)
- • Promoters lack experience in new product categories(p.35)
- • Corporate records discrepancies and non-compliance with statutory provisions(p.32)
- • Untraceable corporate records prior to 2006(p.32)
- • Pending regulatory approvals for manufacturing expansion(p.31)
- • Heavy dependence on promoters and key managerial personnel(p.37)
- • Declining capacity utilization(p.113)
- • Dependence on few large customers(p.113)
- • Missing insurance coverage for key risks(p.114)
- • Incomplete land leases for new facility(p.115)
- • High dependence on top 10 customers (40.12% of revenue in FY2021)(p.178)
- • High dependence on top 10 suppliers (56.9% of total purchases in FY2021)(p.178)
- • Promoters lack experience in proposed new business lines(p.140)
- • Outstanding income tax notice for penalty in FY 2018-19(p.181)
- • Expansion into high-growth hygiene and oral care segments(p.29)
- • Global dental materials market growth at 8% CAGR(p.23)
- • Market tailwinds from rising demand for cosmetic dentistry(p.23)
- • Entry into USA and Canada markets with FDA clearance(p.30)
- • Expansion of distribution network with experienced management(p.29)
- • Expansion into new product segments(p.104)
- • Entry into US and Canadian markets(p.106)
- • Growth in global dental materials market(p.92)
- • Rising demand in India from dental tourism and awareness(p.97)
- • Strengthening R&D capabilities(p.106)
- • Brand awareness and regional office expansion(p.106)
- • Expansion into new hygiene and oral care product categories(p.174)
- • Leveraging existing international certifications for market expansion(p.174)
- • Growing dental materials market and increasing international presence(p.174)
- • Capacity expansion from 200 MT p.a. through new manufacturing facility(p.174)
- • Diversification into bioactive bone cement through licensed technology(p.174)
- • Intense competition from larger competitors with greater resources(p.34)
- • Foreign exchange rate fluctuation exposure from high export dependence(p.35)
- • Raw material supply disruptions and price volatility(p.33)
- • Regulatory changes and compliance requirements(p.42)
- • Pending CDSCO product registrations under Medical Devices Rules(p.31)
- • Dependence on third-party transportation without formal agreements(p.37)
- • COVID-19 pandemic impact uncertainty(p.42)
- • Indian economic slowdown risks(p.42)
- • Rapid technological obsolescence risk(p.37)
- • Labour availability and disputes(p.38)
- • Intense competition from global and Indian players(p.114)
- • COVID-19 impact on dental industry(p.97)
- • Regulatory compliance and changes(p.116)
- • Supply chain disruptions from global events(p.97)
- • Dependence on imported raw materials(p.114)
- • Reliance on third-party industry report data(p.92)
- • Raw material cost and input price volatility affecting product pricing(p.178)
- • Foreign exchange risk on export-dependent business (60.24% of sales)(p.174)
- • Regulatory compliance requirements and licensing dependencies(p.186)
- • Significant competition in dental materials industry(p.178)
- • Pending regulatory approvals for product registrations with CDSCO(p.186)
- • Renewal of compliance certifications required (Factory License expires Dec 2021)(p.184)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Atul Modi | Promoter | 50.06% | 37.86% |
| Mrs. Namrata Modi | Promoter | 48.95% | 36.75% |
| Mrs. Vimla Modi | Promoter Group | 0.91% | 0.68% |
| Mrs. Alka Beotra | Promoter Group | 0.04% | 0.03% |
| Mrs. Niharika Modi | Promoter Group | 0.04% | 0.03% |
| Mr. Atul Modi | Promoter | 50.06% | 36.85% |
| Mrs. Namrata Modi | Promoter | 48.95% | 36.03% |
| Mrs. Vimla Modi | Promoter Group | 0.91% | 0.67% |
| Mrs. Alka Beotra | Promoter Group | 0.04% | 0.03% |
| Mrs. Niharika Modi | Promoter Group | 0.04% | 0.03% |
| Mr. Atul Modi | Promoter | 50.06% | — |
| Mrs. Namrata Modi | Promoter | 48.95% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.