Lakshya Powertech, a prominent player in the engineering, procurement, and construction (EPC) sector, specializes in providing tailored solutions for the oil and gas, power generation, and renewable energy industries, both in India and internationally. With a commitment to excellence, the company has established itself in the fabrication and manufacturing of critical engineering and process equipment.

IPO Overview

The Lakshya Powertech IPO is a Book Built Issue amounting to ₹49.91 Crores, entirely consisting of a Fresh Issue of 27.72 Lakh Shares. The subscription period for this IPO is set to open on October 16, 2024, and will close on October 18, 2024. Allotment is expected to be finalized on or about October 21, 2024, with shares listed on the NSE SME on or around October 23, 2024.

The price band for the Lakshya Powertech IPO is fixed at ₹171 to ₹180 per equity share, with a minimum lot size of 800 shares. Retail investors will need to make a minimum investment of ₹1,44,000, while High-Net-Worth Individuals (HNIs) must invest in at least 2 lots (1,600 shares), totaling ₹2,88,000.

GYR Capital Advisors Private Limited is acting as the book-running lead manager, while KFin Technologies Limited serves as the registrar for the issue. Additionally, Giriraj Stock Broking Private Limited will function as the Market Maker for the IPO.

Grey Market Premium

As of the latest updates, the Grey Market Premium (GMP) for Lakshya Powertech Limited is anticipated to range from ₹76 to ₹80. This figure is derived from the company's financial performance. It's essential to note that trading based on GMP is unregulated and should be approached cautiously.

Subscription Status

Real-time updates indicate that as of 11:30 AM on October 16, 2024, the Lakshya Powertech IPO was subscribed 14.61 times on its first day. This early interest suggests strong market sentiment towards the IPO.

Anchor Investors Report

Lakshya Powertech has successfully raised ₹13.39 Crore from Anchor Investors, pricing the shares at ₹180. A total of 7,44,000 equity shares were allocated to these investors.

Allotment Details

The allotment date for the Lakshya Powertech IPO is set for October 21, 2024. Investors can check their allotment status by navigating to the IPO allotment status page, selecting Lakshya Powertech Limited, and entering their application number, PAN, or DP Client ID.

Objectives of the IPO

The proceeds from the Fresh Issue will be allocated as follows:

₹450 Lakhs will be used for the prepayment or repayment of outstanding borrowings.

₹3,000 Lakhs will fund the working capital requirements of the company.

The remaining amount will address general corporate purposes.

Financial Performance

For the fiscal years 2022 to 2024, Lakshya Powertech has demonstrated substantial growth in revenues and profits:

Revenues from operations were ₹3,421.39 Lakhs in 2022, increasing to ₹14,941.92 Lakhs in 2023 and reaching ₹5,815.38 Lakhs in the period ended August 31, 2024.

EBITDA also saw a notable increase, from ₹201.70 Lakhs in 2022 to ₹947.27 Lakhs in the latest fiscal year.

The profit after tax figures reflect similar growth, climbing from ₹104.58 Lakhs in 2022 to ₹597.11 Lakhs by August 31, 2024.

Valuation Metrics

For this IPO, the company is offering shares at a pre-issue EPS of ₹21.75 and a post-issue EPS of ₹15.54. The pre-issue P/E ratio stands at 8.27x, with a post-issue P/E ratio of 11.58x, well below the industry average P/E ratio of 38.71. Furthermore, the Return on Capital Employed (ROCE) is reported at 36.56%, and the Return on Equity (RoE) is 81.77%, indicating strong financial health and performance.

Investment Recommendation

With a promising Grey Market Premium (GMP) indicating potential listing gains of 40% to 44%, coupled with solid financial performance and valuation metrics, we recommend that investors consider applying for the Lakshya Powertech Limited IPO for both potential listing gains and long-term investment.

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