Laser Power & Infra Surges Up to 26% on Listing Day as Strong Buying Interest Drives Debut

Laser Power & Infra Surges Up to 26% on Listing Day as Strong Buying Interest Drives Debut​

Laser Power & Infra, a prominent manufacturer of power cables and transmission products, witnessed a robust market debut on Thursday. The stock surged up to 26 percent during the trading session, fueled by significant buying interest from investors.

The company's shares hit an intraday high of Rs 270 per share on the NSE, representing a jump of over 26 percent from the issue price of Rs 214. By 1:30 p.m., the stock saw some profit booking and was trading at Rs 263.82, which remained up by 22.9 percent.

On the BSE, the company debuted at Rs 269, a premium of 25.70 percent over the issue price. Meanwhile, the NSE listing occurred at Rs 250, reflecting a 16.82 percent increase from the initial offer price. The current market valuation for the firm stands at Rs 3,705.02 crore.

Strong Subscription and Fundamental Support​

The Rs 742-crore initial public offering of Laser Power & Infra saw significant demand, with the issue being subscribed to 38.94 times on the final day of bidding. The IPO was originally priced in the range of Rs 203 to Rs 214 per share.

Market analysts point toward the company's strong fundamentals as a primary driver for the listing success. Shivani Nyati, Head of Wealth at Swastika Investmart, noted that approximately 90 percent of the IPO proceeds are intended for debt repayment. This strategy, coupled with an order book of Rs 3,243 crore, provides significant revenue visibility for the company.

For investors who received allotments, the current recommendation is to hold positions from a medium- to long-term perspective. New entrants may consider accumulating shares during price dips, though experts suggest maintaining a stop-loss at Rs 225 to manage downside risks.

Operational Outlook and Sector Positioning​

Ravi Singh, Chief Research Officer at Master Capital Services, highlighted that while short-term traders should monitor listing momentum and market sentiment, future price movements will depend heavily on operational performance. He noted that the company has over three decades of experience in manufacturing power cables, conductors, and specialized products for the power transmission sector.

The company maintains a strong presence as a registered supplier to Indian Railways and an accredited vendor for the Research Design & Standards Organisation (RDSO). It operates three manufacturing units in West Bengal with a total installed capacity of 85,448 MT.

Laser Power & Infra is active in both the manufacturing and engineering, procurement, and construction (EPC) segments. The company produces a wide range of products, including aluminum wire rods, aerial bunched cables, and other essential components used in power distribution infrastructure.

The proceeds from the fresh issue will be primarily utilized to prepay or repay borrowings totaling Rs 490 crore. The remaining funds are slated for general corporate purposes to support continued growth in the infrastructure sector.