Lakshya Powertech has made a significant entry into the stock market, with its shares debuting at a 90% premium on the NSE SME platform. Opening at ₹342, against an issue price of ₹180, this impressive listing has generated considerable excitement among investors and market analysts alike. The proceeds from the public offering are earmarked for debt repayment, meeting working capital requirements, and fulfilling general corporate needs.

Operating primarily in the oil and gas, renewable energy, power, and industrial sectors, Lakshya Powertech has carved a niche for itself by offering tailored EPC services. These services are designed to meet the diverse needs of various industries, both domestically and globally. The company has established itself as a key player in fabricating and manufacturing critical engineering and process equipment.

The Book Built Issue amounted to ₹49.91 Crores, consisting entirely of a Fresh Issue of 27.72 lakh shares. The IPO subscription period opened on October 16, 2024, and closed on October 18, 2024. The allotment of shares is expected to be finalized on or about Monday, October 21, 2024, with the listing date tentatively set for October 23, 2024.

The share price band for the Lakshya Powertech IPO was set between ₹171 and ₹180 per equity share, requiring a minimum lot size of 800 shares. For retail investors, the minimum investment amounted to ₹1,44,000, while High-Net-Worth Individuals (HNIs) were required to invest in a minimum of two lots, totaling ₹2,88,000.

Market Dynamics and Investor Sentiment

The company's initial performance reflects robust market dynamics, with the Grey Market Premium (GMP) for Lakshya Powertech shares pegged at ₹120 based on its financial performance and subscription status. While trading based on GMP does not guarantee price discovery, it serves as an indicator of investor demand. It is important to note that the GMP can fluctuate based on market conditions, thus providing insights into potential listing gains.

On the final day of the subscription period, the Lakshya Powertech IPO showed a remarkable subscription rate of 533.89 times, showcasing strong investor interest and confidence. As of October 18, 2024, the IPO attracted considerable attention, further validated by the allocation of ₹13.39 Crores to anchor investors at a price of ₹180 per share. The allocation comprised 7,44,000 equity shares, illustrating the strategic backing from institutional investors.

Allotment Process

The allotment date for Lakshya Powertech is set for October 21, 2024. Investors can check their allotment status through the registrar’s website. To do so, they need to navigate to the IPO allotment status page, select Lakshya Powertech Limited IPO from the dropdown, and enter their application number, PAN, or DP Client ID. This streamlined process facilitates quick access to allotment information, allowing investors to plan their next steps accordingly.

Financial Performance and Future Prospects

Lakshya Powertech's financial performance has shown promising growth over recent years. The revenues from operations for the period ending August 31, 2024, and the preceding fiscal years were ₹5,815.38 Lakhs, ₹14,941.92 Lakhs, ₹5,311.21 Lakhs, and ₹3,421.39 Lakhs respectively. The EBITDA figures also reflect growth, with ₹947.27 Lakhs for the period ending August 31, 2024, compared to ₹2,318.64 Lakhs, ₹477.66 Lakhs, and ₹201.70 Lakhs for the previous fiscal years. The profit after tax for the same period was recorded at ₹597.11 Lakhs, indicating a healthy upward trend.

For the Lakshya Powertech IPO, the pre-issue EPS stands at ₹21.75, while the post-issue EPS is ₹15.54. The pre-issue P/E ratio is 8.27x, and the post-issue P/E ratio is 11.58x, providing a competitive valuation compared to the industry standard P/E ratio of 38.71. Additionally, the company has reported a Return on Capital Employed (ROCE) of 36.56% and a Return on Average Equity (RoAE) of 81.77% for FY24. These metrics collectively suggest that the IPO is fairly priced and may offer potential long-term value.

Given the positive financial outlook and robust demand observed during the IPO subscription, investors are encouraged to consider applying for the Lakshya Powertech Limited IPO for potential listing gains or long-term investment opportunities.

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