Lakshya Powertech Limited IPO Date, Details, Allotment

The Lakshya Powertech Limited IPO is generating excitement in the market. This IPO opens for subscription from October 16, 2024, to October 18, 2024. With a total issue size of ₹49.91 crores, this offering presents a fresh opportunity for investors.

Refer to this Lakshya Powertech IPO RHP for detailed information.

Key Details of Lakshya Powertech Limited IPO

Basic Information

• IPO Date: October 16, 2024, to October 18, 2024
• Listing Date: Tentatively October 23, 2024
• Face Value: ₹10 per share
• Price Band: ₹171 to ₹180 per share
• Lot Size: 800 shares
• Total Issue Size: 27.73 lakh shares

Financials at a Glance

Subscription Details

• Retail Investors: Minimum investment of ₹144,000 (1 lot)
• HNI Investors: Minimum investment of ₹288,000 (2 lots)

Allotment Schedule

Lakshya Powertech Limited: Company Profile

Background

Established in 2012, Lakshya Powertech Limited began as an engineering consultancy. It specializes in mechanical and electrical services. Over the years, it expanded into operations and maintenance for gas-fired power plants.

Services Offered

Lakshya Powertech divides its services into four key areas:

1. Engineering, Procurement, Construction, and Commissioning
2. Integrated Operation and Maintenance Services
3. Specialty Services

Clientele

The company serves both public and private sectors. Major clients include:

• Gmmco Limited
• Equinox Engineering Limited
• Various government institutions

Competitive Strengths

Lakshya Powertech boasts several strengths:

• Expertise in Project Management: Focus on quality, safety, and efficiency.
• Strong Order Book: Continuous growth in project acquisition.
• Diverse Services: Covering various industries.
• Sustainable Growth: Financial stability supports future projects.
• Talent Acquisition: Attracts and retains skilled professionals.

Financial Performance

Key Financial Metrics

Key Ratios

Investment Perspective

Investors are keen to evaluate the Lakshya Powertech Limited IPO based on its robust financial growth and market positioning. The significant increase in revenue and profit over the past fiscal years indicates a positive trend.

Risk Factors

While the financials look promising, investors should consider potential risks:

• Market Competition: The industry is competitive, and new entrants may affect market share.
• Economic Factors: Global economic conditions can impact project execution and funding.
• Regulatory Risks: Changes in regulations could affect operations.

Use of Proceeds

The company plans to use the net proceeds from the Lakshya Powertech Limited IPO for several objectives:

1. Repayment of Borrowings: Reducing existing debts to strengthen the balance sheet.
2. Working Capital Needs: Funding day-to-day operations and projects.
3. General Corporate Purposes: Supporting overall business growth.

Extra Points

The Lakshya Powertech Limited IPO presents a unique investment opportunity. With a strong track record, diverse services, and impressive financial growth, it attracts attention from various investor segments. However, potential investors should remain aware of market risks and conduct thorough research before participating.

This IPO opens up a chance for both retail and institutional investors to engage with a growing company in the power sector. The upcoming subscription period from October 16 to October 18, 2024, is a crucial time for those looking to invest.

Investors are encouraged to stay updated on the latest developments and finalize their applications before the cutoff. This can be a step towards participating in the exciting journey of Lakshya Powertech Limited.

Pro and Cons

Pros

1. Strong Growth: The company has seen big increases in revenue and profit, which is a good sign for its future.
2. Variety of Services: Lakshya Powertech works in many areas, like engineering and maintenance, which helps it manage risks.
3. Trusted Clients: It has a good list of clients, including both government and private companies, which boosts its reputation.
4. Experienced Team: The management has a lot of experience in handling projects, which helps in getting things done well.
5. Good Market Position: With growing interest in power and renewable energy, the company is in a good spot to grow.
6. Solid Order Book: A strong pipeline of projects means it can keep generating income.
7. Employee Discounts: Offering shares at a discount to employees can build loyalty and boost morale.
8. Funding for Growth: Money raised from the IPO will help pay off debts and support future projects.
9. Active in Bidding: The company is actively looking for new projects, showing it’s keen to grow.
10. Focus on Sustainability: Its interest in renewable energy aligns with current trends, which attracts eco-conscious investors.

Cons

1. High Competition: The sectors it operates in are very competitive, which can squeeze profits.
2. Sensitive to Economy: Economic slowdowns can hurt project funding and execution.
3. Regulatory Risks: Changes in laws and regulations could affect how it operates.
4. Debt Issues: Having existing debt could be risky if not managed carefully.
5. Project Challenges: Issues in managing projects could lead to delays or extra costs.
6. Young Company: Being relatively new, it may face challenges in staying strong in the long run.
7. Reliance on Key Clients: Losing a big client could significantly impact its income.
8. Market Fluctuations: Stock prices can change a lot based on market mood, leading to volatility.
9. Keeping Talent: It needs to attract and keep skilled employees, and losing them could disrupt work.
10. Pricing Concerns: Some investors might think the IPO price is too high, which could affect how many people want to invest.