IPO GMPs: Kusumgar IPO vs Laser Power IPO; here's what GMP hints

The recent trend in IPO subscriptions reveals a mixed picture: the Laser Power IPO experienced a sluggish start on its first day, whereas the Kusumgar IPO maintained robust investor interest on the second day of bidding.

According to subscription data from the BSE, the two prominent public issues received differing responses across investor categories, highlighting contrasting market sentiments toward these offerings.

Talking about Kusumgar IPO, Swastika Investmart has recommended subscribing to the issue primarily for listing gains, citing the company's niche position in the defence sector and high entry barriers. However, the brokerage remains cautious on its long-term prospects due to declining revenue, EPS, and RoNW, the likelihood that FY25 earnings were boosted by a one-off order, and the fact that the IPO is a 100% offer-for-sale with no fresh capital infusion.

Speaking about Laser Power IPO, BP Equities and Swastika Investmart have assigned a "Subscribe" rating to the IPO, highlighting the company's improving profitability, healthy ₹3,243 crore order book, planned debt reduction through IPO proceeds, attractive valuations, and favourable long-term growth prospects driven by investments in power transmission, distribution, and smart grid infrastructure.

Let's take a look at the issue details and grey market premium (GMP) trends for the current and upcoming IPOs:

Laser Power IPO GMP today is +12.5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Laser Power share was ₹226.5 apiece, which is 5.84% higher than the IPO price of ₹214.

Based on grey market activity observed over the past six sessions, the current GMP ( ₹12.5) indicates a tendency to decline. The minimum GMP recorded is ₹0.00, while the maximum GMP stands at ₹28, as per expert analysis.

Laser Power IPO aims to raise ₹742 crore, comprising a fresh issue of equity shares worth ₹542 crore and an Offer for Sale (OFS) of ₹200 crore by the company's promoters.

The Laser Power IPO price band has been fixed at ₹203-214 per share. Based on the upper end of the price band, the Kolkata-based company commands an estimated market capitalisation of around ₹3,000 crore.

As part of the OFS in the Laser Power IPO, promoter Deepak Goel will offload up to ₹112.5 crore worth of shares, while Rakhi Goel and Devesh Goel will sell ₹25 crore and ₹62.5 crore worth of shares, respectively.

The company plans to utilise ₹490 crore from the net proceeds of the fresh issue to reduce debt by prepaying or repaying borrowings. The remaining proceeds will be deployed towards general corporate purposes.

Laser Power & Infra is engaged in manufacturing products for the power transmission and distribution sector and executing engineering, procurement, and construction (EPC) projects. Its product portfolio includes power cables, conductors, aluminium wire rods, aerial bunched cables and other transmission-related products, positioning the company to benefit from rising investments in India's power infrastructure.

Kusumgar IPO GMP today is +155. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Kusumgar share was ₹574 apiece, which is 36.99% higher than the IPO price of ₹419.

Considering grey market activity over the past eight sessions, today's IPO GMP shows an upward trend and is anticipated to deliver a robust listing. Experts indicate that the lowest GMP is ₹135.00, with the highest at ₹171.

The Kusumgar IPO is a pure OFS of 10.5 crore equity shares by the company's existing promoters. As the issue does not include a fresh issue of shares, Kusumgar Ltd will not receive any proceeds from the public offer, with the entire amount going to the selling shareholders.