Lakshya Powertech IPO: Price Band Set at ₹171 to ₹180, Opens on 16th October 2024

Established in 2012, Lakshya Powertech Limited started as an engineering consultancy firm specializing in mechanical and electrical services. The company has expanded its services to include Engineering, Procurement, Construction, and Commissioning (EPCC); Integrated Operation and Maintenance Services; and Specialty Services. Lakshya Powertech has successfully executed more than 138 projects, with major projects completed amounting to approximately ₹13,690.68 lakhs. As of May 31, 2024, the company had 912 employees on its payroll.

The Objectives of the Issue

Lakshya Powertech Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company
• Funding working capital requirements of the Company
• General Corporate Purposes

Highlights of Lakshya Powertech IPO

Lakshya Powertech IPO is set to launch with a book-built issue of ₹49.91 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 16th October 2024 and closes on 18th October 2024.
• The allotment is expected to be finalised on 21st October 2024.
• Refunds will be initiated on 22nd October 2024.
• Credit of shares to Demat accounts is also expected on 22nd October 2024.
• The company will tentatively list on NSE SME on 23rd October 2024.
• The price band is set at ₹171 to ₹180 per share.
• The fresh issue comprises 27.73 lakh shares, aggregating to ₹49.91 crores.
• The minimum lot size for the application is 800 shares.
• Retail investors need to invest a minimum of ₹144,000.
• The minimum investment for HNI is 2 lots (1,600 shares), amounting to ₹288,000.
• The issue includes a reservation of up to 72,000 shares for employees offered at a discount of ₹15 to the issue price.
• GYR Capital Advisors Private Limited is the book-running lead manager for the IPO.
• Kfin Technologies Limited serves as the registrar.

Lakshya Powertech IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 18th October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Lakshya Powertech IPO Issue Details/Capital History

Lakshya Powertech IPO is scheduled from 16th October to 18th October 2024, with a price band of ₹171 to ₹180 per share and a face value of ₹10. The total issue size is 27,72,800 shares, raising up to ₹49.91 crores through a fresh issue. The IPO will be listed on NSE SME. The market maker portion is 1,48,000 shares.

Lakshya Powertech IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 800 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Lakshya Powertech Ltd

Strengths:

• Extensive expertise in project management
• Significant growth underpinned by a solid order book
• Integrated operational and management services
• Diversified activities across various industries and economies
• Strong financial performance and sustainable growth

Weaknesses:

• Dependence on specific sectors (power generation, oil and gas)
• Potential overreliance on key clients

Opportunities:

• Expansion into emerging renewables and green energy businesses
• Growth potential in EPCC contracts
• Increasing demand for specialized engineering services

Threats:

• Intense competition in the engineering and construction sector
• Economic fluctuations affecting project investments
• Regulatory changes impacting the power and oil & gas industries

Financial Highlights: Lakshya Powertech Ltd

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

Lakshya Powertech Limited has shown exceptional growth in recent years. The company's revenue increased by 181%, and profit after tax (PAT) rose by 452% between the financial year ending on 31st March 2024 and 31st March 2023.

Assets have shown substantial growth, increasing from ₹1,758.89 lakhs in FY22 to ₹8,246.31 lakhs in FY24, representing a growth of about 369% over two years.

Revenue has seen remarkable growth, rising from ₹3,421.39 lakhs in FY22 to ₹14,941.92 lakhs in FY24, marking an impressive increase of 337% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹104.58 lakhs in FY22 to ₹1,495.24 lakhs in FY24, representing a substantial growth of 1,329% over two years.

Net Worth has shown strong growth, increasing from ₹389.89 lakhs in FY22 to ₹3,201.18 lakhs in FY24, a growth of about 721% over two years.

Total Borrowings have increased from ₹590.43 lakhs in FY22 to ₹2,900.04 lakhs in FY24, which represents an increase of about 391% over two years. This increase in borrowings, coupled with the significant growth in assets and revenue, suggests that the company is in an aggressive expansion phase.

The company's financial performance shows a trend of exceptional revenue growth and profitability improvement. The substantial increase in Net Worth indicates a strengthening financial position. However, the significant increase in borrowings should be considered in the context of the company's rapid growth. Investors should evaluate these financial trends along with the company's market position and future growth prospects when considering the IPO.