Lakshya Powertech IPO Sees Massive 20x Oversubscription on Day 1! GMP Hints at 90% Premium for NSE SME Listing

The IPO of Lakshya Powertech, a power generation company, opened for subscription on Wednesday, October 16, and will close on Friday, October 18. The IPO is already seeing strong demand, being oversubscribed nearly 20 times in the first two hours. The company is aiming to raise ₹49.91 crore by issuing 27.73 lakh fresh shares. The current Grey Market Premium (GMP) suggests that the shares could list at a 90% premium.

Subscription Status

By 12:05 pm on the first day, the IPO was subscribed 20.03 times overall. The retail portion was subscribed 34.36 times, while the non-institutional buyers’ portion was subscribed 17.75 times. The qualified institutional buyers’ portion had no subscriptions as of this time.

Key Details of the Lakshya Powertech IPO:

1. GMP: As of 12:05 pm on Wednesday, the GMP was ₹169. With the upper price band at ₹180, shares are expected to list at ₹349, showing a premium of 93.89%.
2. Subscription Dates: The IPO opened on October 16 and will close on October 18.
3. Price Band: The price per share is set between ₹171 and ₹180.
4. IPO Size: The company plans to raise ₹49.91 crore, which will be used for debt repayment, working capital needs, and general corporate purposes.
5. Lot Size: Investors can apply in lots of 800 shares.
6. Reservation: There are 5,24,800 shares reserved for qualified institutional buyers, 3,96,000 for non-institutional buyers, and 8,96,000 for retail investors.
7. Allotment Date: The allotment of shares is expected on Monday, October 21. Those who are successful will receive shares in their demat accounts by Tuesday, October 22, while others will receive refunds on the same day.
8. Lead Manager and Registrar: GYR Capital Advisors is the lead manager for the IPO, and Kfin Technologies is the official registrar.
9. Listing Date: The shares are expected to be listed on the NSE SME platform on Wednesday, October 23.
10. Company Overview: Lakshya Powertech provides consultancy in power generation, and handles operations and maintenance of gas-fired power plants. Their profit after tax for FY22, FY23, and FY24 was ₹104.58 lakh, ₹271.09 lakh, and ₹1,567.77 lakh, respectively. As of August 31 this year, they recorded a profit of ₹597.11 lakh.