Laser Power & Infra opens today at ₹203-214

The initial public offering of Kolkata-headquartered Laser Power & Infra Ltd (LPIL) opens today at a price band of ₹203-214. The IPO lot size has been fixed at 70 shares.

The ₹742 crore IPO of the integrated manufacturer of power cables, conductors and specialised products and components for the power transmission and distribution industry, is a combination of fresh issue (₹542 crore) and offer for sale of ₹200 crore by selling/promoter shareholders. Promoters are Deepak Goel, Devesh Goel, Akshat Goel and Rakhi Goel. As part of the OFS, Deepak Goel, Rakhi Goel and Devesh Goel will sell shares.

The company has reserved up to 50 per cent of the issue for qualified institutional buyers (QIBs), not less than 15 per cent for non-institutional investors (NIIs), and not less than 35 per cent for retail investors.

Laser Power & Infra Ltd has raised ₹222 crore from anchor investors at ₹214 per share. The anchor book saw participation from several domestic and global investors, including Prashant Jain’s 3P India Equity Fund, Nippon India Mutual Fund (MF), HDFC MF, Mirae Asset MF, Motilal Oswal MF, Bandhan MF, Edelweiss MF, Bank of India MF, Kotak Mahindra Life Insurance, Edelweiss Life Insurance and Societe Generale.

The company has allotted 1.04 crore equity shares to anchor investors at ₹214 apiece, the upper end of the IPO price band, aggregating ₹222.6 crore.

LPIL proposes to utilise the net proceeds of the fresh issue towards pre-payment or repayment, in full or in part, of certain outstanding borrowings worth ₹600 crore and a portion would be earmarked for general corporate purposes.

The company has three manufacturing facilities in West Bengal with a combined installed capacity of 85,448 metric tonnes as of March 31, 2026. Laser Power & Infra operates in the manufacturing and engineering, procurement and construction (EPC) segments. It manufactures power cables, conductors, aluminium wire rods, aerial bunched cables and other products used in the power transmission and distribution sector.

SBI Securities: Valuation: Laser Power & Infra Ltd is a strategically located cable and conductor manufacturer in East India catering to the power transmission segment. The location advantage along with its partnership with leading global player gives it an edge over its peers. The company delivered a revenue/EBITDA/Adj. PAT CAGR of 15.4 per cent/39.0 per cent/72.5 per cent respectively between FY24-26. 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 peers of similar size. The company plans to utilise 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.

Choice Equities: LPI has established itself as an integrated power T&D player with a backward-integrated manufacturing setup and a forward-integrated EPC business, enabling greater control over the value chain, improving cost efficiencies and strengthening execution capabilities. The company has demonstrated a healthy improvement in profitability, with EBITDA margins expanding from 8.5 per cent in FY23 to 13.0 per cent in FY26, while PAT margins improved from 1.8 per cent to 6.5 per cent, reflecting operating leverage, improved business mix and the benefits of integration. The proposed utilisation of a significant portion of the fresh issue proceeds towards debt repayment is expected to reduce finance costs, strengthen the balance sheet and further support earnings growth and net profit margins. Backed by a diversified product portfolio, expanding EPC presence and favourable long-term industry tailwinds driven by rising investments in India’s power transmission and distribution infrastructure, the company is well positioned to sustain its growth trajectory. At the upper price band, the issue is valued at P/E of 19.8x and a...