Vasa Denticity IPO (NSE SME) Review

Vasa Denticity IPO entails to raise ₹54.07 crore. The IPO will open on May 23, 2023, and close on May 25, 2023. Vasa Denticity is a dental products e-commerce company headquartered in New Delhi, India. Vasa Denticity is a Dental Products E-Commerce company, and sells its products through the online portal ‘’ as well as mobile application ‘Dentalkart’

IPO opensMay 23, 2023
IPO ClosesMay 25, 2023
IPO Size (Rs.)₹54.07 Cr
IPO Size (shares) 4,224,000 shares
Breakup Fresh issue 3,174,000 shares
OFS 1,050,000 shares
Face Value:₹ 10
IPO Price in Rs :₹121 to ₹128 per share
Minimum Lot1000
Listing AtNSE SME
QIB Quota<= 50% of  Net Issue
NII Quota<= 15% of  Net Issue
Retail Quota<= 35% of  Net Issue
 Lead ManagerHem Securities Limited 
RegistrarMas Services Limited
Market makerHem Finlease


Anchor Investors:

  • Vasa Denticity is in the business of marketing and distribution of a comprehensive portfolio of dental products including consumables, instruments, equipment, and accessories for diagnosing, treating and preventing dental conditions as well as improving the aesthetics of the human smile through an online portal “”.
  • The same is operated through its website and mobile application “Dentalkart”.
  • Dentalkart App has 1 lakh+ downloads servicing at least 62000 loyal customers every quarter.
  • It offers the largest selection from all dental brands at competitive price.
  • The company operates an online channel housing approximately 300 domestic and international brands with a comprehensive product range of more than 10,000 dental products.
  • Dr. Vikas Agarwal, Sandeep Aggarwal, Manish Kumar and Nakul Varshney are the Promoters of the Company.
  • Dr Vikas Aggarwal, began with an 8×10 ft. small shop in 2016 with his brother Sandeep who is a software engineer, and now Dentalkart operates from a 15000 sq. ft warehouse in Gurgaon, a 12000 sq. ft. corporate office in Delhi and 200+ employees with exponential growth and reaching new heights every year.

Vasa Denticity IPO: Financials

Particulars/ Rs Lacs31 dec 22 (9m)202220212020
Revenue (including other income)8,757.117,714.084,017.723,045.13
Profit before tax 699.2534.5744.279.42
Profit/(loss) after tax501.9540.9832.589.44
Paid up Share Capital20202020
Net Worth1,102.66600.7659.7827.2
Earnings per Share4.114.430.270.08
Net Asset Value per Share9.044.920.490.22
Total  Borrowings  266.31326.29197.2464.57
Post issue Share Capital1601.00   
IPO price1283-3.992.13
EPS FY223.38545539.0640.93
PE Fy2237.88394798.42786.43
EPS Fy233 (ann)4.18
PE Fy23 (ann)30.62
Market cap in Lacs20493
Market Cap/sales  (ann)1.76
sales cagr57%
net profit cagr314%

Salient Points

  • The Promoter and Promoter Group shareholding which is 95% pre IPO shall be 69.62% Post IPO.
  • Global dental market size is expected to grow at a CAGR of 6-7 per cent for the forecast period 2022-2030. The Indian dental market size today is about USD 2 billion has an expected annual growth rate of 20 per cent. The dental products e-commerce market is growing rapidly in India. The market is expected to grow at a CAGR of 20% from 2022 to 2027.
  • As on December 31, 2022, Vasa Denticity are connected with over 250 overseas and domestic vendors for sourcing these dental products. All its products are sourced from third-party suppliers.
  • The company owns the “Dentalkart” brand and has also crafted a portfolio of over 30 owned brands, such as Waldent, Endoking, SuperEndo UUortho etc.
  • Its top 10 suppliers for the stub period ended on December 31, 2022 and Fiscals 2022, 2021 and 2020 accounted for 30.94%, 43.04%, 55.28% and 52.84% of the total purchases for respective years.
  • During FY 19-20, it had approximately 32000 customers which increased to around 60000 during the nine months period ended on December 31, 2022. Its revenue from operations has grown from ₹3041.81 lakhs in Financial Year 2020 to ₹4007.08 lakhs and ₹7692.05 lakhs in Financial Year 2021 and Financial Year 2022, respectively.
  • It has recently obtained a property on lease at Apparel Industrial Park, Dargapura Village, Bengaluru, Karnataka, which it plans to use it as warehouse center in future.
  • Dentalkart works in the niche supply market and plans to expand warehouses in 4 other states by December 2023 and have a projection to make 10x revenue by 2025-26.
  • As on the date of this Red Herring Prospectus, it had 32 trademark registrations in India. Further we have 15 trademark applications that are pending approval by the trademark registry and rectification application has been filed for 1 trademark by us.
  • Dentalkart claims to be India’s biggest online Dental store for Dental Product , Dental Materials , Dental Instruments Dental Equipments etc.
  • The Group Companies and Promoter Group entities, Waldent Innovations Private Limited, Vasa Dental Supplier, Indian Dental Company and The DentGist Company are involved in ventures which are in the same line of business as of the Company
  • As of December 31, 2022 the Company had total indebtedness in the form of short term and long term borrowings of Rs. 266.31 lakhs. Out of the said indebtedness of Rs. 266.31 lakhs, it had obtained unsecured loan from bank and financial institutions of Rs. 127.45 lakhs, which are taken on high rate of interest ranging from 15% to 17%.
  • The company has been profitable for the past three years.
  • The company intends to utilize the Net IPO Proceeds for the following objects
Sr. No.ParticularsAmt (Rs. in Lacs)
1.To Meet Working Capital Requirements2600.00
2.Expenditure to enhance visibility and awareness of our brands300.00
3.General Corporate PurposeRemaining
  • A Comparison with the listed peers mentioned in its RHP is depicted below:
CompanyCMP Rs.FVRevenues in crNP in cr.NPMPERonwMcap cr.Mcap/Sales
Vasa Denticity * 1281011775.7%30.6290.05%2051.76
Prevest Denpro Ltd.42410501632.0%32.420.26%50910.18
* annualised 2023 from 9m       
  • Its PE ratio is 38x (fy22 earnings)  and 31x (fy23 ). There has been a good jump in revenues and profits from the last few years. Company appears to be on the growth path.
  • I intend to apply in Vasa Denticity IPO. Past performance and prospects look good to me.
  • SME IPO are more volatile and risky.
  • The lead book running manager is Hem Securities. The IPOs lead managed by them have given a good return to the investors. These include names like Chaman Mettalics, Systango Technologies, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc.
  • GMP as reported on social media has been inching up and may be more than Rs. 30.
  • Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.

  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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