Lakshya Powertech IPO makes stellar debut, shares list at 90% premium on NSE SME; check how much investors made

Lakshya Powertech Limited made a stellar debut on the NSE SME platform on Wednesday, October 23, with its shares listing at a 90% premium to the issue price.

Lakshya Powertech shares were listed on the NSE Emerge platform at ₹342 apiece, up 90% compared to the issue price of ₹180 apiece. After listing, the stock rallied further to hit the 5% upper at ₹359.1 levels.

The minimum bidding quantity in the Lakshya Powertech IPO was 800 shares for retail applicants. The successful bidders who were allotted shares in the primary issue would have made a profit of at least ₹1,29,600 (₹162 x 800) as soon as the stock started trading on the exchange.

After the stock began to trade, 3.79 lakh shares of the company changed hands on the NSE. The company's market capitalisation stood at ₹362.11 crore.

Lakshya Powertech IPO details

Lakshya Powertech IPO was worth ₹49.91 crore. The book-building issue consisted of a fresh issuance of 27.73 lakh shares. The IPO price band was fixed at ₹171 to ₹180 per share.

The minimum application size for retail investors was fixed at a single lot size of 800 shares, which aggregated to an investment of ₹1,44,000.

Lakshya Powertech IPO was booked 573.46 times during the three-day bidding period from Wednesday, October 16, to Friday, October 18. Investors across categories placed bids for over 108.31 crore shares of Lakshya Powertech against 18.88 lakh shares on offer.

The non-institutional investors (NII) quota was booked 1,118.13 times, and the retail investors’ quota was oversubscribed nearly 590.31 times. The SME issue was booked 212.17 times in the QIB category and received bids for 1,11,200 shares from company employees.

The company plans to use the proceeds of the public issue for prepayment or repayment of its outstanding borrowings. A portion of the IPO proceeds will also be used for funding the working capital requirements of the company and general corporate purposes.

Lakshya Powertech Limited was established in 2012. The company started its operations as an engineering consultancy firm. The company provides services across four verticals— Engineering, Procurement, Construction, and Commissioning (EPCC), Integrated Operation and Maintenance (O&M), and Specialty Services for the construction industry. Lakshya Powertech caters to clients from both public and private sector. Some of the company's key clients include Gmmco Limited and Equinox Engineering Limited. The company employed 912 workers as of May 31, 2024.