Laser Power and Infra IPO Day 2: Check latest GMP, subscription status, and other details - Should you apply?

Laser Power and Infra IPO Day 2: The initial public offering (IPO) of Laser Power & Infra opened for public subscription on July 9 and will remain open until July 13. The company has fixed the price band at ₹203-214 per equity share.

The basis of allotment for the IPO is expected to be finalised on July 14. Shares are likely to be credited to the demat accounts of successful applicants on July 15, while refunds to unsuccessful bidders will also be initiated on the same day. The company's shares are scheduled to make their stock market debut on the BSE and NSE on July 16.

Laser Power IPO GMP Today

Investor sentiment toward the IPO is strong, as its grey market premium (GMP) is 24 on July 10. This suggested that the stock was likely to debut at ₹238, a premium of 11.21% from IPO price.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Laser Power IPO subscription status

The IPO was subscribed 0.23 times by 10:10 am on Day 2. The retail portion was subscribed 0.32 times, and NII portion was booked 0.34 times, Meanwhile, Qualified Institutional Buyers (QIBs) portion had not received any bids yet.

The company has received bids for 56.28 lakh shares against 2.42 crore shares on offer.

The issue was subscribed 0.17 times on Day 1.

Laser Power IPO Details

The ₹742 crore public issue comprises a fresh issue of equity shares worth ₹542 crore and an Offer for Sale (OFS) of ₹200 crore by the promoters. As part of the OFS, Deepak Goel will offload shares worth up to ₹112.5 crore, while Devesh Goel and Rakhi Goel will sell shares worth ₹62.5 crore and ₹25 crore, respectively.

The company intends to utilise ₹490 crore from the net proceeds of the fresh issue towards the prepayment or repayment of certain borrowings, while the balance amount will be used for general corporate purposes.

Ahead of the IPO launch, Laser Power & Infra mobilised around ₹223 crore from anchor investors. The anchor allocation was completed on July 8, a day before the issue opened for subscription.

The lot size for an application is 70 shares. The minimum amount of investment required by an individual investor (retail) is ₹14,980 (70 shares) (based on upper price).

Out of the total issue size, up to 50% has been reserved for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs) and at least 35% for retail investors.

The issue is being managed by IIFL Capital Services and ICICI Securities, which are acting as the book-running lead managers to the IPO.

Laser Power IPO - Should you subscribe?

Brokerages are positive on the Laser Power & Infra IPO, citing the company's strong positioning in the power transmission sector, improving financial performance, diversified business model and favourable long-term industry outlook. Here's what brokerages recommend:

SBI Securities: SBI Securities said Laser Power & Infra is a strategically located cable and conductor manufacturer in East India catering to the power transmission segment. It added that the company's location advantage and partnership with a leading global player give it a competitive edge over peers. The brokerage highlighted that the company delivered a Revenue/EBITDA/Adjusted PAT CAGR of 15.4%/39.0%/72.5%, respectively, between FY24 and FY26.

"At the upper price band of ₹214, the IPO is valued at FY26 P/E multiple of 25.3x on a post-issue basis. This is significantly lower than some of its larger peers and in line with peer of similar size. The company plans to utilize the proceeds for debt reduction, which should reduce the interest cost and help improve profitability. We recommend investors to SUBSCRIBE to the issue with a LONG TERM investment horizon," SBI Securities said.

Choice Broking: Choice Broking believes the company is well placed to sustain its growth, backed by its diversified product portfolio, expanding EPC presence and favourable long-term industry tailwinds driven by rising investments in India's power transmission and distribution infrastructure.

"At the upper price band, the issue is valued at a P/E of 19.8x and an EV/Sales of 1.4x, relative to its listed peers. Considering its integrated business model, improving financial profile and deleveraging-led earnings potential, we recommend investors 'Subscribe for Long Term'," Choice Broking said.

About Laser Power and Infra

Originally incorporated in 1988, Laser Power & Infra manufactures power cables, conductors and other products used in the transmission and distribution sector, while also undertaking EPC projects. In its DRHP, the company describes itself as the fastest-growing manufacturer of power cables and conductors in India by revenue growth during the relevant period.

The company has reported strong financial growth over the past two years. Revenue from operations increased from ₹1,314.46 crore in FY23 to ₹2,570.40 crore in FY25, representing a 39.84% CAGR. During the same period, PAT rose from ₹23.19 crore to ₹106.75 crore, while EBITDA increased from ₹111.67 crore to ₹250.39 crore. EBITDA margin improved from 8.50% to 9.74%, while PAT margin expanded from 1.75% to 4.12%.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.