Lakshya Powertech IPO: Opens October 16 – Price Band & Latest GMP Details
Lakshya Powertech IPO
Lakshya Powertech IPO: ₹50 Crore Offering Opens October 16 – All You Need to Know from Price Band to Latest GMP
Lakshya Powertech Limited is gearing up for its Initial Public Offering (IPO), which is set to open for subscription on October 16, 2024.
This move marks a significant step for the company, as it aims to raise ₹49.91 crore through this public issue.
With a carefully structured price band of ₹171-180 per share, investors have the opportunity to subscribe to this IPO until October 18. It is worth noting that this IPO will consist entirely of fresh equity shares, with no Offer for Sale (OFS) component involved.
This means that the full proceeds from the IPO will directly benefit Lakshya Powertech, allowing the company to fund its growth strategies and operational needs. The shares are expected to be listed on the NSE SME platform on October 23, 2024.
About the Lakshya Powertech IPO
Lakshya Powertech’s IPO will involve the issuance of 27.73 lakh fresh equity shares, equating to a total value of ₹49.91 crore.
The allotment process for successful applicants is projected to occur shortly after the subscription period, with shares expected to be allocated on October 21, 2024.
For retail investors, the minimum lot size for application is set at 800 shares, which translates to a minimum investment of ₹144,000.
This investment threshold indicates the company’s positioning as a mid-sized player aiming to attract serious investors.
An additional 72,000 shares have been specifically reserved for employees, who will benefit from a discount of ₹15 per share on the issue price.
This allocation not only incentivizes employees but also aligns their interests with those of the company and its shareholders, fostering a sense of ownership and commitment among the workforce.
The capital raised through this IPO is earmarked for several essential purposes. Primarily, the funds will be used for the prepayment or repayment of certain outstanding borrowings, which can help improve the company’s financial health and reduce interest liabilities.
Additionally, a portion of the proceeds will be directed towards meeting working capital requirements, ensuring that Lakshya Powertech can sustain and expand its operations effectively.
Lastly, the funds will be utilized for general corporate purposes, providing the company with the flexibility to respond to emerging opportunities and challenges in the market.
The management team is led by promoters Rajesh Anne and Priya Bandhavi Anne, who have been instrumental in steering the company’s vision and growth strategy. GYR Capital Advisors Private Limited is acting as the book running lead manager for the IPO, ensuring a streamlined process for investors. Kfin Technologies Limited will serve as the registrar of the issue, handling the administrative aspects of the share allocation.
Additionally, Giriraj Stock Broking is appointed as the market maker for Lakshya Powertech’s IPO, which plays a crucial role in ensuring liquidity and facilitating trading for the company’s shares post-listing.
Lakshya Powertech IPO Latest GMP
The response to Lakshya Powertech’s IPO has been promising, especially in the grey market, where it has been trading at a premium of ₹135 as of October 13.
This strong demand suggests that investors have confidence in the company’s growth potential and are optimistic about its future performance.
Should this trend continue, shares could be listed at approximately ₹315, representing a potential gain of 75% for investors.
Such a high level of interest reflects the market’s anticipation of robust financial performance and growth trajectory for Lakshya Powertech.
Business Overview of Lakshya Powertech
Established in 2012, Lakshya Powertech Limited has carved out a niche for itself in the engineering consultancy and contracting sector.
Operating primarily in Gujarat and Dadra and Nagar Haveli, the company has developed expertise in mechanical and electrical services.
This specialization positions Lakshya Powertech to serve a diverse array of industries, including oil, gas, power generation, renewable energy, and various industrial applications.
Over the years, Lakshya Powertech has expanded its service offerings significantly. Initially focused on freelance power generation consultancy, the company has grown to encompass operation and maintenance (O&M) services for gas-fired power plants and large-scale power generation projects.
This evolution has not only diversified the company’s revenue streams but also enhanced its market presence and competitiveness.
The financial performance of Lakshya Powertech underscores its growth trajectory. The company reported revenues of ₹149.42 crore in the fiscal year 2024, a remarkable increase from ₹53.11 crore in 2023.
This exponential growth can be attributed to the increasing demand for reliable energy solutions and the company’s ability to leverage its expertise in engineering and project management.
Furthermore, Lakshya Powertech is projected to achieve a profit of ₹14.95 crore in 2024, up significantly from ₹2.71 crore the previous year.
This upward trend in profitability highlights the effectiveness of the company’s operational strategies and its commitment to delivering value to shareholders.
Market Position and Future Prospects
Lakshya Powertech operates in a dynamic and competitive landscape, where the demand for energy solutions continues to rise.
As countries and industries increasingly prioritize sustainability and renewable energy, the company is well-positioned to capitalize on these trends.
With its extensive experience in both traditional and renewable energy sectors, Lakshya Powertech can effectively navigate the evolving market landscape and seize new opportunities.
Looking ahead, the company’s plans for growth include expanding its service offerings, enhancing operational efficiencies, and exploring strategic partnerships.
By leveraging its technical expertise and industry knowledge, Lakshya Powertech aims to solidify its position as a leading player in the engineering consultancy and contracting space.
Final Remarks
In summary, the upcoming Lakshya Powertech IPO presents a compelling opportunity for investors seeking to engage with a company poised for significant growth.
With a strong management team, a solid business model, and favorable market conditions, Lakshya Powertech is well-equipped to achieve its objectives and create value for its stakeholders.
As the IPO date approaches, investors are encouraged to conduct thorough research and consider the potential benefits of participating in this offering.
