Laser Power & Infra IPO Stalls at 23%: Analyzing Profit Surge vs. Risk Exposure Before You Invest

Laser Power & Infra IPO Stalls at 23%: Analyzing Profit Surge vs. Risk Exposure Before You Invest​

The IPO of Kolkata-based power transmission equipment manufacturer, Laser Power & Infra, is facing muted demand on its second day of subscription. As of 10:15 am on July 10, the issue has been subscribed to 23 percent on NSE data. The offering, priced in the range of Rs 203-214 per share, remains open for investors until July 13.

The IPO sought bids for 58,52,420 shares against a total offer of 2,55,86,207 shares. This translates to a subscription rate of 23 percent overall. Non-institutional investors (NIIs) led the initial demand with a 34 percent subscription rate, while retail individual investors subscribed at 31 percent so far on July 10.

IPO Subscription Status and Demand Breakdown​

The allocation structure for Laser Power & Infra reserves 50 percent for qualified institutional buyers (QIBs), 35 percent for retail investors, and 15 percent for non-institutional investors. The company has already secured substantial backing from Anchor Investors, raising ₹ 222.6 crore on July 8 from participants including Societe Generale, HDFC Mutual Fund, and Kotak Mahindra Life Insurance.

The issue size was reduced from a proposed Rs 1,200 crore mentioned in the draft red herring prospectus filed in September 2025. The current structure comprises a fresh issue of 2.53 crore shares worth ₹ 542 crore, along with an offer-for-sale component of 93 lakh shares aggregating ₹ 200 crore by promoter shareholders.

Company Fundamentals: Profit Surge Amid Revenue Dip​

Financial performance reveals a complex picture for Laser Power & Infra. The company reported a notable 42 percent surge in profit after tax to Rs 151.6 crore. This improved profitability, however, was set against a 9.5 percent year-on-year decline in revenue, which stood at Rs 2,326.1 crore in FY26.

The operational strength is evident through the margins. EBITDA expanded by 20.4 percent to reach Rs 301.4 crore, resulting in an improved EBITDA margin of 12.96 percent, up from 9.74 percent in the previous year. This indicates improving efficiency despite reduced top-line revenue.

Investment Thesis and Critical Risks​

Master Capital's IPO note suggests that investors may view this offering as a potential long-term investment opportunity. The rationale provided centers on the company’s established position as one of the leading players in manufacturing capacity for power cables and conductors across East India.

However, potential buyers must note several significant risks flagged within the IPO documentation. These include high customer concentration, where the top 10 customers contribute a substantial portion of revenue. Other major risks involve reliance on power cables and conductors for a large share of revenue, exposure to raw material price volatility, and dependence on a limited supplier base without long-term procurement agreements.

Use of Proceeds and Corporate Overview​

The funds generated through the IPO will be strategically utilized by the company. From the fresh issue alone, Laser Power & Infra plans to use ₹ 499 crore. This allocation is primarily designated for repaying or prepaying outstanding borrowings. The company held debt amounting to Rs 935.7 crore as of June 17, 2026.

The remaining proceeds from the IPO will be allocated toward general corporate purposes. Established in 1988, Laser Power & Infra operates three manufacturing facilities in West Bengal. These facilities boast a combined installed capacity of 85,448 metric tonnes as of March 31, 2026. Manufacturing currently contributes 73 percent of the FY26 revenue, with the EPC business accounting for the remaining 27 percent.