Lakshya Powertech Limited is a well-established player in the EPC services sector, catering to the oil and gas, power generation, and renewable energy sectors. Known for its expertise in fabricating and manufacturing critical engineering and process equipment, Lakshya Powertech has positioned itself as a strong contender both domestically and globally. With a relentless focus on innovation and excellence, the company has carved a unique niche, making it an attractive prospect for investors.

Lakshya Powertech IPO Key Details:

The Lakshya Powertech IPO is an important opportunity for investors, aiming to raise ₹49.91 crores through a book-built issue consisting entirely of a fresh issue of 27.72 lakh shares. The IPO opens for subscription on October 16, 2024, and closes on October 18, 2024. The price band for the IPO has been set at ₹171 to ₹180 per equity share, offering an affordable entry point for retail and HNI investors. The minimum lot size is 800 shares, requiring a minimum investment of ₹1,44,000 for retail investors. High-Net-Worth Individuals (HNIs) can apply for 2 lots, with a total investment of ₹2,88,000.

GYR Capital Advisors Private Limited has been appointed as the book-running lead manager, ensuring smooth execution of the IPO process. KFin Technologies Limited is the registrar, and Giriraj Stock Broking Private Limited will serve as the market maker for the Lakshya Powertech IPO. The company has already secured ₹13.39 crores from anchor investors at the upper price band of ₹180 per share, which reflects strong interest from institutional buyers.

The tentative listing date for Lakshya Powertech shares on the NSE SME platform is expected to be October 23, 2024, with the allotment finalized by October 21, 2024. Investors keen on checking their allotment status can do so by visiting the registrar's website and entering their application number or PAN details.

Financial Performance:

Lakshya Powertech's strong financial performance over the years has bolstered its market reputation. The company recorded revenues of ₹5,815.38 lakhs for the period ending August 31, 2024, compared to ₹14,941.92 lakhs in FY24, ₹5,311.21 lakhs in FY23, and ₹3,421.39 lakhs in FY22. The company's EBITDA has also shown a positive trend, reaching ₹947.27 lakhs in the most recent period, highlighting consistent growth.

The company's profit after tax has risen from ₹104.58 lakhs in FY22 to ₹271.09 lakhs in FY23, and an impressive ₹597.11 lakhs for the period ending August 2024, reflecting strong business fundamentals and operational efficiency. Lakshya Powertech's Return on Capital Employed (ROCE) stands at a healthy 36.56% for FY24, with Return on Equity (ROE) at an impressive 81.77%, underscoring the company's profitability and attractiveness for investors.

Grey Market Premium (GMP):

As of today, the Grey Market Premium (GMP) for Lakshya Powertech stands at ₹120, which indicates potential listing gains of approximately 66%. However, it is important to note that Grey Market Premiums fluctuate based on demand and supply and should not be the sole basis for investment decisions.

Objectives of the Issue:

The proceeds from the Lakshya Powertech IPO will be allocated towards several key objectives:

  ▪ Prepayment or repayment of certain borrowings, amounting to ₹450.00 lakhs.

  ▪ Funding working capital requirements of ₹3,000.00 lakhs, enabling the company to meet its operational needs as it continues to expand.

  ▪ General corporate purposes, providing the company with flexibility to strengthen its operations and market presence.

Investment Recommendation:

Considering the strong financials, favorable price band, and market interest, we recommend investors apply to the Lakshya Powertech IPO. With promising listing gains as indicated by the Grey Market Premium and long-term growth potential in the EPC sector, the IPO offers an attractive investment opportunity.

For those looking to apply, the minimum lot size of 800 shares translates to a minimum investment of ₹1,44,000, making it accessible to retail investors. High-Net-Worth Individuals (HNIs) must apply for a minimum of 2 lots, amounting to ₹2,88,000.

Investors can check the Lakshya Powertech IPO live subscription status on platforms like NSE to track real-time updates and analyze the demand for shares during the subscription period.

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