Infra Sector Surge: Is Laser Power IPO Set for Mega Listing After Low Day Subscription?

Infra Sector Surge: Is Laser Power IPO Set for Mega Listing After Low Day Subscription?​

The Kolkata-based power transmission equipment manufacturer, Laser Power & Infra, launched its Initial Public Offering on July 9, 2026. The issue comes with a price band set between ₹203 and ₹214 per share. This offering aims to raise substantial capital through a fresh issue of 2.53 crore shares worth ₹542 crore, complemented by an Offer For Sale (OFS) component totaling ₹200 crore from promoter shareholders.

As of the morning trading on NSE, the IPO registered an overall subscription rate of 2%. This figure reflects bids received for 4,87,900 shares against a total offer volume of 25,586,207 shares. Retail individual investors (RIIs) led demand in their category, subscribing to 3% of the reserved segment. Non-Institutional Investors (NIIs) closely followed, contributing a 1 percent subscription so far.

Initial Investor Response and Market Signals​

Despite the subdued early trading response, preparatory market signals suggested a robust debut for the stock. Prior to the issue opening, grey market activity indicated potential listing gains across various tracking platforms. One IPO tracker estimated the Grey Market Premium (GMP) at ₹19, implying an 8.88% listing gain over the issue price. Another estimate placed the GMP at ₹15, suggesting a 7.01% listing appreciation for investors.

The allocation structure for the offering is designed with specific institutional targets in mind. Qualified Institutional Buyers (QIBs) are allocated 50% of the shares. Retail investors secured 35%, while Non-Institutional Investors were allotted 15%. Furthermore, the company successfully raised ₹222.6 crore from anchor investors on July 8, attracting major participants such as Societe Generale and HDFC Mutual Fund.

Financial Resilience Amid Revenue Decline​

While the IPO is a significant capital raise, recent financial data shows a complex operational picture for the firm. Laser Power & Infra reported a 42% surge in profit after tax, amounting to ₹151.6 crore. This strong profitability improvement was achieved despite a 9.5% year-on-year decline in revenue, which stood at ₹2,326.1 crore in FY26.

The operational strengthening is highlighted by the company’s EBITDA rising 20.4% to reach ₹301.4 crore. This growth drove an expansion in the EBITDA margin, moving it up to 12.96% from the previous year's 9.74%. The company plans to utilize a significant portion of the fresh issue proceeds to strengthen its balance sheet.

Business Operations and Corporate Profile​

Incorporated since 1988, Laser Power & Infra manages three manufacturing facilities situated in West Bengal. These facilities possess a combined installed capacity standing at 85,448 metric tonnes as of March 31, 2026. Manufacturing activities accounted for 73% of the company’s FY26 revenue, with the remaining 27% derived from the EPC business.

The company holds a substantial order book valued at ₹3,243 crore as of March 31, 2026. This robust pipeline is composed of ₹1,668 crore secured through manufacturing contracts and ₹1,574 crore from EPC projects. A key aspect of the business profile is its status as a licensed stranding partner of US-based TS Conductor, enabling advanced local production in India.

Expert View: Risk Assessment and Investment Opportunity​

Master Capital’s IPO note suggests that the issue could be viewed as a viable long-term investment opportunity for investors. This view rests on Laser Power & Infra's established position as one of the leading manufacturers of power cables and conductors within East India. The company plans to utilize ₹499 crore from the fresh issue specifically for repaying or prepaying outstanding borrowings, given that its total debt stood at ₹935.7 crore as of June 17, 2026.

However, potential investors must carefully note several critical risks flagged by the IPO documents. These include a high degree of customer concentration, where the top ten customers contribute substantially to the overall revenue stream. Furthermore, the business shows dependence on power cables and conductors for a large portion of its earnings, alongside exposure to raw material price volatility and reliance on limited supplier bases without long-term procurement agreements.