Lakshya Powertech IPO 16th Oct to 18th Oct: A Comprehensive Overview
The electroequipment player, Lakshya Powertech, is floating its IPO to raise Rs 49.91 crore, and entirely as a fresh issue, Lakshya plans to sell 27.73 lakh shares to primarily support the company’s expansion plans and other corporate purposes. The IPO subscription window begins on 16th October 2024 and closes on the 18th of October 2024. Stock is slated to be listed at the NSE SME exchange on 23rd October 2024. In this blog, we will discuss all the details of the IPO, such as price band, subscription details, allotment process, etc.
IPO Details: Lakshya Powertech
Lakshya Powertech is an electricity infrastructure solution provider; manufacturing, installation, and providing various electrical equipment. The company is planning to issue an IPO to raise funds for the purpose of expansion in the production capacity, working capital, and other corporate activities, thereby satisfying their needs for capital.
| Event | Date |
|---|---|
| IPO Open Date | Wednesday, October 16, 2024 |
| IPO Close Date | Friday, October 18, 2024 |
| Basis of Allotment | Monday, October 21, 2024 |
| Initiation of Refunds | Tuesday, October 22, 2024 |
| Credit of Shares to Demat | Tuesday, October 22, 2024 |
| Listing Date | Wednesday, October 23, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 18, 2024 |
IPO Size: Rs 49.91 crores
Fresh Issue: 27.73 lakh shares
Type of Offer: Entire issue comprises fresh equity shares. No existing shareholders whose stakes get diluted.
Subscription Dates and Allotment
Investors have an extremely narrow window to invest in this IPO, as the subscription shall remain open for three days :
Oct 16, 2024
Oct 18, 2024
At the end of the subscription period, allotment shall occur. Allotment will be completed on October 21, 2024. The stocks are likely to list on NSE SME platform by October 23, 2024.
Price Band and Minimum Investment
Lakshya Powertech IPO Price Band ₹171 – ₹180; Retails to buy in minimum of 800 shares or more for a minimum consideration of ₹ 144,000. The minimum investment for HNIs would be in 2 lots i.e., 1,600 shares amounting to ₹ 288,000.
This type of the structured investment approach allows retail and HNI investors participation as per their financial capacity, while employees get the facility at a discounted price.
| Event | Date |
|---|---|
| IPO Open Date | Wednesday, October 16, 2024 |
| IPO Close Date | Friday, October 18, 2024 |
| Basis of Allotment | Monday, October 21, 2024 |
| Initiation of Refunds | Tuesday, October 22, 2024 |
| Credit of Shares to Demat | Tuesday, October 22, 2024 |
| Listing Date | Wednesday, October 23, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 18, 2024 |
Employee Reservation
The company has reserved 72,000 shares for its employees in this IPO, offering them a discount of Rs 15 per share over the issue price. This employee reservation is the way of involving the workforce in the company by giving them a chance to invest at a discounted price with a share in the growth prospects of the company.
Motive of the IPO
The amount raised from the Lakshya Powertech IPO will be utilized for a number of major corporate purposes, such as:
Increasing the production capacity since the demand for the company’s electrical structure and equipment is on an upsurge.
Working capital: A significant portion of the raised amount is used to fund the working capital requirement for the company, thus making the day-to-day activities flow smoothly.
General Corporate Purposes: Remaining will be utilized for general corporate expenses and further rejuvenating financial position of the corporation.
Industry Overview: Electrical Equipment Industry
Indian electrical equipment companies have been on an upward growth trajectory with increasing infrastructure development, the increasing rate of urbanization, and a rising need for renewable energy. Companies like Lakshya Powertech well position themselves to ride this trend because it provides the necessary tools and equipment in the sector of setting electrical infrastructure.
The main thrust in the electrification and modernization of the country’s power grids by the government has led to an increased demand for transformers, circuit breakers, cables, and other related equipment–all of these falling well within the portfolio companies such as Lakshya Powertech enjoy.
Apart from this, the increasing adoption of electric vehicles and renewable energy sources like solar and wind power has further increased the demand for electrical equipment. This is set to be an important domain in the era of transitioning India to cleaner energy; thus, companies here make the investors’ wallet attractive.
Financial Summary of Lakshya Powertech
The company’s financial details are yet to be portrayed; however, Lakshya Powertech has been growing steadily over the past few years. Strategic focus of the company towards high-quality electrical equipment manufacturing has helped them acquire a solid reputation in the market.
The investors will be very interested to see the revenue growth, profit margins, and ROE performance as they assess the long-term prospects of the company. The listing on the NSE SME exchange platform will further enhance the visibility of the health and wellness in the company.
Risks Involved
Sector-Specific Risks The electrical equipment sector is considerably dependent on government policies regarding infrastructure development, energy, and electrification. Changes in such policies might affect the prospects of the company.
The investors have to evaluate these risks while deciding to invest.
How to Apply for Lakshya Powertech IPO
Key steps to apply:
Enter the number of shares you would like to subscribe to and the price at which you are biddable within the price band of ₹171-₹180 per equity share.
Click submit and confirm your application.
You must submit your application between October 16–18, 2024.
Allotment is subject to availability.
Conclusion:
All above recommendations are of the market analysts. Neither the author, nor the brokerage firm, nor Stockstoday.in will be responsible for any loss arising out of any such decision taken based upon this information. All users are cautioned to take their own expert advice prior to making any investment decision.
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