Lakshya Powertech IPO: Review, Valuation, Date & GMP

Lakshya Powertech IPO-Complete Overview

Lakshya Powertech IPO under the SME IPO category is a book-built issue of Rs.49.91 crore by Lakshya Powertech Pvt Limited. The company was founded in 2012 with a focus on mechanical and electrical services as an engineering consultant. The business swiftly grew from providing independent power-generating consulting to operations and maintenance (O&M) for massive power generation projects including gas-fired power plants.

The company improved its standing in the market and increased the scope of its services by branching out into the oil and gas sector. The company's global reach was demonstrated by an EPC contract in Malaysia's renewable energy industry and expansion in oil and gas facility maintenance and repair.

Engineering, Procurement, Construction, and Commissioning (i) Integrated Operation and Maintenance Services (ii) and Specialty Services are the company’s primary service categories offered by Lakshya Powertech.

The business has completed over 138 projects with success, the largest of which totaled Rs.approx Rs.13690.68 lac.

This Lakshya Powertech IPO will start on 16 October 2024, and its ‘initial public offering’ will end on 18 October 2024.

 

Lakshya Powertech IPO Overview

The Rs.49.91 crore new SME IPO comprises a wholly fresh issue of 27.73 lac Shares. 

This upcoming IPO date is from October 16 to October 18, 2024. Lakshya Powertech IPO price band is Rs.171 to Rs.180 for each Share. 

The expected IPO listing date is Wednesday, 23 October 2024, and listing at NSE and SME.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

How to get an IPO refund?

If you have applied for the IPO but have not been allotted the Shares by the Registrar and now looking for “ what to do if the IPO refund is not received ”, then we have covered the blog which explains the steps to get your IPO refund. Click here to learn the steps.

 

Company Financial

The company’s revenue grew by 181% and PAT increased by 478% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Category-wise Revenue Breakdown  

(Amount in lac)

 

Sector-wise Revenue Breakdown  

(Amount in lac)

 

Geography-wise Revenue Breakdown  

(Amount in lac)

 

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• The working capital requirements.

• Full or partial prepayment of some outstanding loans that the company has taken out.

• General corporate purposes.

 

Peers of Lakshya Powertech Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

 

Evaluation

The Lakshya Powertech IPO price is Rs.171 to Rs.180 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.21.75 from the last year, the resulting P/E ratio is 8.27x.

Considering the weighted EPS of Rs.15.37 for the last three years, the P/E ratio is 11.71x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 38.71x.

 

 IPO's Strengths 

• Competent managers and promoters.

• Establishing enduring connections with clients.

• A proficient team of operators.

• Reliable financial results.

 

IPO’s Weaknesses

• Reliance on particular industries (such as oil and gas, electricity generation).

• Possible over-dependence on important clientele.

• Fierce rivalry in the building and engineering industries.

• Changes in the economy that impact project investments.

• Regulations affecting the oil and gas and power sectors.

 

Lakshya Powertech Limited IPO GMP

Lakshya Powertech IPO GMP today is Rs.135 as of 14 October 2024. With a price of Rs.180 per Share, the estimated IPO listing price is Rs.315 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from October 16 to October 18, 2024, with allotment on October 21, refund initiation on October 22, and listing on October 23, 2024.

 

Lakshya Powertech IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 2,772,800 Shares (Rs.49.91 Cr).

Lakshya Powertech IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (800 Shares) amounting to Rs.1,44,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1600 Shares) amounting to Rs.2,88,000.

 

Lakshya Powertech IPO Reservation (% of Net Issue)

 

 

Promoters And Management of Lakshya Powertech Ltd.

• Mr. Rajesh Anne.

• Mrs. Priya Bandhavi Anne.

 

IPO Lead Managers

• GYR Capital Advisors Private Limited.

Dividend Policy

The company has not paid dividends in the last three FYs.

Conclusion

The company provides EPC-related services to the power generation and oil and gas sectors. It had orders totaling more than Rs.265 crore in stock as of August 31, 2024. The sharp rise in its top and bottom lines beginning in FY24 is cause for concern. According to a study of FY25 annualized super profits, the issue appears reasonably priced.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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