Kolkata-based Laser Power & Infra made a robust stock market debut on Thursday, July 15, with its shares listing at a significant premium on both the BSE and NSE. The company, an an integrated manufacturer of power cables and conductors, saw its stock open at Rs 269 on the BSE, marking a 25.70 per cent premium over its initial public offer (IPO) price of Rs 214.
Strong Performance Exceeds Expectations
While the shares settled at Rs 250 on the NSE, still commanding a 16.82 per cent premium over the issue price, the initial listing on BSE surpassed market expectations. Ahead of its debut, Laser Power & Infra shares were trading at a grey market premium (GMP) of Rs 38-40, suggesting an 18-19 per cent listing gain. This was higher than the Rs 35 GMP observed when the IPO first opened for subscription.
Investor Gains Post-Listing
The strong listing translated into immediate profits for investors. Retail investors who secured a single lot of 70 equity shares, purchased for Rs 14,980, saw a profit ranging from Rs 2,520 to Rs 3,850. High Net-worth Individual (HNI) investors, with 14 lots (980 shares) valued at Rs 2,09,720, garnered profits between Rs 35,280 and Rs 53,900.
IPO Details and Subscription
Laser Power & Infra's IPO was open for bidding from July 9 to July 13, with shares offered in a price band of Rs 203-214 per share. The company successfully aimed to raise Rs 742 crore through the offering, which included a fresh issue of shares worth Rs 542 crore and an Offer For Sale (OFS) of 93,45,793 shares amounting to Rs 200 crore.
The IPO witnessed overwhelming demand, being subscribed 38.94 times overall, attracting over 11.53 lakh applications and bids totaling Rs 21,300 crore. The Qualified Institutional Buyers (QIBs) portion was subscribed an impressive 92.25 times. Non-Institutional Investors (NIIs) booked their quota 43.34 times, while the retail portion was subscribed 6.59 times during the three-day bidding period.
Company Profile
Incorporated in 1988, Laser Power & Infra is an established Kolkata-based entity specializing in the manufacture of power cables, conductors, and various specialized products and components for the power transmission and distribution sector in India. The company has also strategically diversified into the Engineering, Procurement, and Construction (EPC) segment within the power distribution industry.
Brokerage firms had largely given positive recommendations for the IPO, suggesting long-term subscription. IIFL Capital Services and ICICI Securities served as the book-running lead managers for the issue, with MUFG Intime India acting as the registrar.