Lakshya Powertech IPO: 

Everything You Need to Know

Lakshya Powertech Limited is set to launch its IPO with a book-built issue totaling ₹49.91 crores. The offering consists solely of a fresh issue of 27.73 lakh shares, providing investors a chance to participate in the company's growth journey. This highly anticipated IPO opens for subscription on October 16, 2024, and will close on October 18, 2024.

Key Highlights of Lakshya Powertech IPO

• IPO Price Band: The price band is set between ₹171 to ₹180 per share, providing flexibility to investors.
• Minimum Investment: Retail investors need to apply for a minimum of 800 shares, amounting to ₹144,000. High Net-worth Individuals (HNIs) can invest with a minimum of 2 lots (1,600 shares), totaling ₹288,000.
• Employee Reservation: There is a reservation of up to 72,000 shares for employees, offered at a discount of ₹15 to the issue price.
• Lead Manager and Registrar: GYR Capital Advisors Private Limited is managing the IPO, with Kfin Technologies Limited as the registrar.
• Market Maker: Giriraj Stock Broking is acting as the market maker for this IPO, ensuring liquidity for investors.

Timeline for Lakshya Powertech IPO

Here is the detailed timeline for the Lakshya Powertech IPO to help you plan your investment:

• IPO Open Date: October 16, 2024
• IPO Close Date: October 18, 2024
• Basis of Allotment: Expected by October 21, 2024
• Initiation of Refunds: October 22, 2024
• Credit of Shares to Demat Accounts: October 22, 2024
• Listing Date: October 23, 2024

Lakshya Powertech: Company Overview

Established in 2012, Lakshya Powertech Limited initially provided engineering consultancy, specializing in mechanical and electrical services. Over the years, the company has evolved into a leader in operations and maintenance (O&M) for power generation and related sectors. Expanding its horizons into the oil and gas industry, Lakshya Powertech now holds a solid presence in global markets with multiple EPC (Engineering, Procurement, and Construction) contracts.

Lakshya Powertech's service portfolio includes:

1. Engineering, Procurement, Construction, and Commissioning (EPCC)
2. Integrated Operations and Maintenance Services
3. Specialty Services

The company boasts a successful track record, having completed over 138 major projects with a combined value of approximately ₹13,690.68 lakhs.

Competitive Strengths of Lakshya Powertech

Lakshya Powertech's competitive advantages include:

• Proven Expertise: Strong project management capabilities, focusing on quality, safety, and timely execution.
• Solid Financial Growth: A robust order book and strong pre-qualification credentials drive its growth.
• Diverse Industry Presence: Operations spanning power generation, oil and gas, and renewable energy sectors.
• Customer-Centric Approach: Building lasting relationships with clients, ensuring repeat business and high customer satisfaction.

Financial Performance of Lakshya Powertech

Lakshya Powertech's financial growth trajectory has been remarkable. Here are some key financial metrics to consider:

Metric	31 Aug 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (₹ Lakhs)	9,415.91	8,246.31	3,334.85	1,758.89
Revenue (₹ Lakhs)	5,815.38	14,941.92	5,311.21	3,421.39
Profit After Tax (₹ Lakhs)	597.11	1,567.77	271.09	104.58
Net Worth (₹ Lakhs)	3,770.8	3,173.71	660.98	389.89

Objectives of Lakshya Powertech IPO

The funds raised through the IPO will be utilized for:

• Repayment or prepayment of certain outstanding borrowings
• Working capital requirements
• General corporate purposes

Investing in Lakshya Powertech IPO: Key Considerations

• IPO Pricing: The price band of ₹171-₹180 per share seems attractively priced considering the company's financial metrics.
• Market Potential: Lakshya Powertech’s expansion into renewable energy and its existing stronghold in oil and gas provide substantial growth opportunities.
• Risk Factors: Rapid growth in the company's top and bottom lines just before the IPO raises questions about long-term sustainability.

Conclusion: Should You Invest in Lakshya Powertech IPO?

The Lakshya Powertech IPO presents a promising investment opportunity for both retail and HNI investors. With a proven track record, diversified service portfolio, and strong financial performance, the company is well-positioned for future growth. However, investors should also consider the potential risks and conduct thorough research before making a decision.

Lakshya Powertech's strategic focus on expanding into emerging markets and maintaining strong financials makes this IPO a considerable option for medium to long-term investments.