Lakshya Powertech Limited has positioned itself as a vital player in providing tailored EPC (Engineering, Procurement, and Construction) services for the oil and gas, power generation, and renewable energy sectors. With a strong commitment to excellence, the company has carved out a unique niche in the fabrication and manufacturing of critical engineering and process equipment. This IPO presents a compelling opportunity for investors looking to engage with a company that has demonstrated resilience and innovation across diverse sectors.

The Lakshya Powertech IPO is a Book Built Issue amounting to ₹49.91 Crores, consisting entirely of a Fresh Issue of 27.72 Lakh shares. The subscription period is set from October 16, 2024, to October 18, 2024. Investors can anticipate the allotment date to be finalized on or around October 21, 2024, with the shares expected to list on the NSE SME by October 23, 2024.

Share Price Band and Investment Requirements
The price band for the Lakshya Powertech IPO is established between ₹171 and ₹180 per equity share. The minimum lot size is 800 shares, making the minimum investment for retail investors approximately ₹1,44,000. For High-Net-Worth Individuals (HNIs), a minimum of 2 lots (1,600 shares) is required, amounting to ₹2,88,000. This pricing structure is designed to cater to a wide range of investors, allowing both retail and institutional participation.

Lead Managers and Market Makers
GYR Capital Advisors Private Limited serves as the book-running lead manager for the IPO, while KFin Technologies Limited acts as the registrar. Giriraj Stock Broking Private Limited is designated as the Market Maker, ensuring liquidity and efficient price discovery for the shares post-listing.

Grey Market Premium (GMP)
The current Grey Market Premium for the Lakshya Powertech IPO is approximately ₹120. However, it is crucial to note that trading based on the Grey Market Premium does not guarantee accurate price discovery, as it largely depends on the demand and supply dynamics in the unorganized market. This metric is provided purely for educational and informational purposes.

Live Subscription Status
As of 11:30 AM on October 17, 2024, the Lakshya Powertech IPO has garnered significant interest, achieving a subscription rate of 86.87 times on its second day of the subscription period. This robust demand underscores the market's positive sentiment towards the offering and hints at potential strong listing gains.

Anchor Investors Participation
Lakshya Powertech has successfully raised ₹13.39 Crores from anchor investors, allocating 7,44,000 equity shares at a price of ₹180 per share. This participation from institutional investors bolsters confidence in the company’s prospects and signifies institutional endorsement of the IPO.

Objectives of the IPO
The proceeds from the Fresh Issue are earmarked for several strategic purposes:

₹450.00 Lakhs will be directed towards the prepayment or repayment of outstanding borrowings, enhancing the company’s financial health.

₹3,000.00 Lakhs will support working capital requirements, ensuring that the company can maintain operational efficiency.

Remaining funds will be allocated for general corporate purposes, aiding in overall business growth and stability.

Financial Performance Overview
The financial performance of Lakshya Powertech illustrates its growth trajectory. For the period ending August 31, 2024, the company reported revenues from operations amounting to ₹5,815.38 Lakhs, with a strong upward trend observed in previous fiscal years (₹14,941.92 Lakhs in FY2024, ₹5,311.21 Lakhs in FY2023, and ₹3,421.39 Lakhs in FY2022). The company’s EBITDA figures also demonstrate impressive growth, with ₹947.27 Lakhs for the current period, compared to ₹2,318.64 Lakhs in FY2024.

Furthermore, the profit after tax for the period ended August 31, 2024, stands at ₹597.11 Lakhs, reflecting substantial profitability when contrasted with previous fiscal years (₹1,567.77 Lakhs in FY2024, ₹271.09 Lakhs in FY2023, and ₹104.58 Lakhs in FY2022). These metrics indicate a robust operational performance and a solid foundation for future growth.

Valuation Insights
For the Lakshya Powertech IPO, the pre-issue Earnings Per Share (EPS) is ₹21.75, while the post-issue EPS is projected at ₹15.54. The pre-issue Price-to-Earnings (P/E) ratio is calculated at 8.27x, with a post-issue P/E ratio of 11.58x. In comparison, the industry P/E ratio stands at 38.71, suggesting that the IPO is fairly priced and presents an attractive investment opportunity relative to peers. The company boasts an impressive Return on Capital Employed (ROCE) of 36.56% and a Return on Equity (RoAE) of 81.77% for FY24, further substantiating its growth potential.

Investment Recommendation
Given the positive financial performance and promising valuation metrics, we recommend that investors consider applying for the Lakshya Powertech Limited IPO. The Grey Market Premium indicates potential listing gains of around 66%, making it a viable option for both listing gains and long-term investment purposes.

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This comprehensive overview of the Lakshya Powertech IPO encapsulates the essential details, financial insights, and investment recommendations that potential investors need to make informed decisions. Stay updated, and seize the opportunity to invest in a growing company within a dynamic industry landscape.