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.

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.

The IPO was subscribed 0.17 times by end of Day 1. The retail portion was subscribed 0.26 times, and NII portion was booked 0.20 times, Meanwhile, Qualified Institutional Buyers (QIBs) portion had not received any bids yet.

The company has received bids for 41.84 lakh shares against 2.42 crore shares on offer.

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.

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.