Lakshya Powertech Limited IPO Overview

Lakshya Powertech Limited, a key player specializing in tailored EPC services for the oil and gas, power generation, and renewable energy sectors, has launched its IPO. The issue size is ₹49.91 Crores, consisting entirely of a Fresh Issue of 27.72 lakh shares. The IPO subscription period runs from October 16 to October 18, 2024, and the company plans to list on the NSE SME with a tentative listing date of October 23, 2024.

Issue Price Band: ₹171 to ₹180 per share

Lot Size: Minimum 800 shares

Retail Minimum Investment: ₹1,44,000

HNI Minimum Investment: ₹2,88,000 (2 lots)

The book-running lead manager is GYR Capital Advisors Private Limited, with KFin Technologies Limited as the registrar and Giriraj Stock Broking Private Limited acting as the Market Maker.

Lakshya Powertech Limited IPO GMP

The Grey Market Premium (GMP) for Lakshya Powertech IPO is currently ₹120, indicating potential listing gains of 66% based on current demand. However, it’s crucial to note that the Grey Market Premium is speculative and should not be solely relied upon for price discovery.

Financial Performance

Lakshya Powertech's financials showcase a solid growth trajectory, underpinned by its strong market position and capabilities in engineering and manufacturing critical process equipment.

Revenues:

FY24 (up to August 31): ₹5,815.38 Lakhs

FY24: ₹14,941.92 Lakhs

FY23: ₹5,311.21 Lakhs

FY22: ₹3,421.39 Lakhs

EBITDA:

FY24 (up to August 31): ₹947.27 Lakhs

FY24: ₹2,318.64 Lakhs

FY23: ₹477.66 Lakhs

FY22: ₹201.70 Lakhs

Profit After Tax (PAT):

FY24 (up to August 31): ₹597.11 Lakhs

FY24: ₹1,567.77 Lakhs

FY23: ₹271.09 Lakhs

FY22: ₹104.58 Lakhs

Key Financial Ratios

Pre-issue EPS: ₹21.75

Post-issue EPS: ₹15.54

Pre-issue P/E: 8.27x

Post-issue P/E: 11.58x

Industry P/E: 38.71x

Return on Capital Employed (ROCE): 36.56% (FY24)

Return on Average Equity (RoAE): 81.77% (FY24)

These numbers indicate that the IPO is reasonably priced compared to industry peers, with strong returns on capital and equity.

IPO Objectives

Lakshya Powertech plans to use the funds raised from the IPO for the following purposes:

₹450.00 Lakhs for prepayment or repayment of borrowings.

₹3,000.00 Lakhs for funding working capital requirements.

The balance for general corporate purposes.

Subscription Status and Anchor Investors

As of the final day of subscription (October 18, 2024), the Lakshya Powertech IPO is oversubscribed 533.89 times, reflecting significant investor interest. The company has raised ₹13.39 Crores from Anchor Investors, who were allocated 7,44,000 shares at ₹180 per share.

Lakshya Powertech IPO Allotment and Listing

Allotment Date: October 21, 2024

Listing Date: Tentatively on October 23, 2024

Investors can check the allotment status on the Registrar's website by entering their application number, PAN, or DP Client ID.

Conclusion: Should You Invest?

Lakshya Powertech's strong financials, combined with robust industry demand and attractive GMP, make this IPO appealing for both listing gains and long-term investment. The company’s steady growth in revenues and profitability, along with a well-defined use of funds, points to a promising future. Given the oversubscription and solid backing from anchor investors, we recommend subscribing to the Lakshya Powertech IPO.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

For more insights into the latest IPOs and stock trading news, visit our sections on Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and explore the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.