Laser Power Infra IPO Surges to 2.5X as Market Gears Up for Listing Amid Profit Surge
The initial public offering (IPO) of Laser Power & Infra is showing robust demand on its final day of subscription, having been subscribed approximately 2.5 times by the morning of July 13. The Kolkata-based power transmission equipment manufacturer has generated significant interest from investors ahead of its listing on the BSE and NSE, scheduled for July 16.The IPO, with a total size of Rs 742 crore, received bids for 6,62,79,500 shares against 2,55,86,207 shares offered. Demand was particularly concentrated in the institutional and retail segments. Non-institutional investors (NIIs) showed strong enthusiasm, with their quota subscribed at 7.22 times. The retail investor portion also saw a healthy response, closing at 1.71 times.
GMP Estimates Signal Strong Listing Prospects
The company's shares are commanding a notable premium in the unofficial grey market ahead of the launch. IPO tracking platforms have estimated varying levels of gain based on the upper price band of Rs 214.IPO Watch estimates the grey market premium (GMP) at Rs 35 per share, suggesting a potential listing gain of 16.35 percent. Meanwhile, Investorgain estimates the GMP at Rs 31 per share, implying an approximate listing gain of 14.5 percent. These premium valuations underscore the market's confidence in the company's underlying business structure and future growth trajectory.
Financial Performance Drives Investor Confidence
Financial analysis reveals a turnaround in profitability for Laser Power & Infra, despite a slight decline in top-line revenue. For the fiscal year ending March 2026, the company reported a 9.5 percent year-on-year decrease in revenue to Rs 2,326.1 crore.Crucially, the company's profit after tax surged by 42 percent, reaching Rs 151.6 crore. This profitability was backed by an improvement in operating performance, as EBITDA rose by 20.4 percent to Rs 301.4 crore. The expansion of operational efficiency is also evident as the EBITDA margin expanded to 12.96 percent from the previous year's 9.74 percent.
IPO Structure and Operational Footprint
The total IPO comprises a fresh issue of 2.53 crore shares, valued at Rs 542 crore, alongside an offer-for-sale (OFS) of 93 lakh shares amounting to Rs 200 crore by promoter shareholders. The funds generated from the fresh issue will be strategically utilized to repay outstanding borrowings of Rs 490 crore.As of June 17, 2026, the company had a total outstanding debt of Rs 935.7 crore. Incorporated in 1988, Laser Power & Infra operates three manufacturing facilities across West Bengal, boasting a combined installed production capacity of 85,448 metric tonnes.
Risks and Market Outlook for Laser Power Infra
Market commentators view the IPO as a potential long-term investment opportunity due to the company's established position as a leader in power cable and conductor manufacturing within East India.However, investors are cautioned by the risk factors detailed in the IPO note. These include exposure to raw material price volatility and reliance on a limited supplier base. Furthermore, the company faces risks related to high customer concentration and dependence on power cables and conductors for a significant share of its revenue stream.
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