Lakshya Powertech had a fantastic stock market debut today on NSE SME, with its share price opening at ₹342, a 90% premium over the issue price of ₹180.
The company’s IPO (Initial Public Offering) subscription period started on October 16 and closed on October 18. The price band for the IPO was set between ₹171 and ₹180 per share, with each share having a face value of ₹10. Investors had to apply for a minimum of 800 shares. On the final day of bidding, the IPO was oversubscribed by a massive 573.36 times, according to data from Chittorgarh.com.
Lakshya Powertech was founded in 2012 as an engineering consulting company focusing on mechanical and electrical services. Over time, it expanded into operations and maintenance (O&M) for large power projects, including gas-fired power plants. The company has also ventured into the oil and gas sector, strengthening its market position. Lakshya Powertech’s global presence grew when it secured an engineering, procurement, and construction (EPC) contract in Malaysia’s renewable energy sector.
As detailed in the company’s red herring prospectus, Lakshya Powertech’s competitors include Asian Energy Services Ltd and Engineers India Ltd, with P/E ratios of 53.56 and 23.86, respectively. The company reported a significant growth in sales (181%) and profit after tax (478%) between March 31, 2023, and March 31, 2024.
Lakshya Powertech IPO Details
The company raised ₹49.91 crore through the IPO, issuing 2,772,800 new shares with a face value of ₹10 each. The funds will be used for working capital, corporate needs, and paying off some existing debt. There was no offer for sale (OFS) component in this IPO.
GYR Capital Advisors Private Limited acted as the lead manager for the IPO, while KFin Technologies Limited served as the registrar. Giriraj Stock Broking is the market maker for the IPO.
Grey Market Premium (GMP) Update
Lakshya Powertech IPO’s grey market premium (GMP) today stands at +₹170, meaning investors were willing to pay ₹170 more than the issue price. This suggests the estimated listing price for the stock could be around ₹350, which is 94.44% higher than the IPO price of ₹180.
In simpler terms, the grey market premium reflects how much extra investors are willing to pay compared to the initial price.
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