Laser Power & Infra shares list at 26% premium on BSE

Laser Power & Infra shares made a strong stock market debut on Thursday, listing at a premium.

The stock listed at ₹269 on the BSE, a premium of 25.7 per cent over the IPO price of ₹214 per share.

On the NSE, the stock began trading at ₹250, reflecting a premium of 16.8 per cent to the issue price.

At the time of writing, the stock traded with 21 per cent listing gains near ₹260 level.

According to Shivani Nyati, Head of Wealth at Swastika Investmart, Laser Power & Infra’s fundamentals remain strong, supported by around 90 per cent of the IPO proceeds being utilised for debt repayment and a healthy order book of ₹3,243 crore, providing revenue visibility.

Congratulations to Laser Power & Infra Limited on getting listed on NSE today.Laser Power & Infra Limited is a integrated manufacturer of power cables, conductors and other specialised products and components to the power transmission and distribution industry in India. Its… pic.twitter.com/B3kCEanjOq

Nyati said investors who received allotment can continue to hold the stock for the medium to long term, while fresh investors may consider accumulating the stock on dips. She recommended a stop-loss of ₹225 to manage downside risk.

The strong listing came after the company’s ₹742 crore IPO was subscribed 38.94 times, driven by strong demand from qualified institutional buyers and non-institutional investors.

The qualified institutional buyers portion was subscribed 92.25 times, while the non-institutional investors category was subscribed 43.34 times. The retail investor segment was subscribed 6.59 times.

Ahead of the IPO opening, the integrated power cables and transmission products manufacturer raised around ₹223 crore from anchor investors.

The public issue comprised a fresh issue of equity shares worth ₹542 crore and an offer-for-sale of ₹200 crore by promoters.

Under the offer-for-sale portion, promoter Deepak Goel sold shares worth up to ₹112.5 crore, while Rakhi Goel and Devesh Goel sold shares worth up to ₹25 crore and ₹62.5 crore, respectively.

The company had fixed the price band for the issue at ₹203-214 per share.

Proceeds from the fresh issue will primarily be used to prepay or repay borrowings worth ₹490 crore, while the remaining funds will be utilised for general corporate purposes.

IIFL Capital Services and ICICI Securities were the book-running lead managers to the issue.