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Table of Contents

What is the business of Lakshya Powertech?

Lakshya Powertech Limited: Leading Engineering Solutions Since 2012

Founded in 2012, Lakshya Powertech Limited has established itself as a premier engineering consultancy specializing in mechanical and electrical services. Initially focused on power generation consultancy, the company quickly evolved to offer comprehensive operations and maintenance (O&M) solutions for gas-fired power plants and large-scale energy projects.

By strategically diversifying into the oil and gas sector, Lakshya Powertech has broadened its service offerings and solidified its industry presence. Key milestones include securing an EPC contract in the renewable energy sector in Malaysia and expanding its capabilities in oil and gas plant maintenance and repair, which underscores the company’s global footprint.

Its services are organized into four primary areas:

1. Engineering, Procurement, Construction, and Commissioning (EPCC)
2. Integrated Operation and Maintenance Services
3. Specialty Services

With a proven track record, Lakshya Powertech has successfully completed over 138 projects, with major undertakings valued at approximately Rs. 13,690.68 lakhs. Its commitment to excellence and innovation drives its mission to deliver superior engineering solutions that meet the evolving needs of the energy sector.

Lakshya Powertech Limited collaborates with both public and private sector clients. Our esteemed clientele includes prominent organizations such as Gmmco Limited, Equinox Engineering Limited, and various respected government institutions.

As of May 31, 2024, its dedicated team consists of 912 employees, reflecting its commitment to delivering high-quality engineering solutions.

For more information about the company, visit its website @ https://www.lakshyapowertech.com/

Who are the Promoters of Lakshya Powertech?

Mr. Rajesh Anne and Mrs. Priya Bandhavi Anne are the company’s promoters

What are the Objects of Lakshya Powertech IPO?

The Offer comprises of fresh issue of shares

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects:

1.Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company;

2.Funding working capital requirements of the Company; and

3. General Corporate Purposes

Lakshya Powertech IPO GMP grey market premium, review, Subscription, allotment, listing estimate

Lakshya Powertech IPO Review

Founded in 2012, Lakshya Powertech Limited has established itself as a premier engineering consultancy specializing in mechanical and electrical services. Initially focused on power generation consultancy, the company quickly evolved to offer comprehensive operations and maintenance (O&M) solutions for gas-fired power plants and large-scale energy projects.

Size:  Net size of the IPO is Rs.47.25 crore, comprising of 2624800 shares. IPO size is somewhat large considering the recent trends. With 1148 applications, retail portion can get one time subscribed
Financial Snapshot: In the fiscal year 2023-24, just prior to its IPO, Lakshya Powertech Limited reported a net profit of Rs.15.68 crore on total income of Rs.149.42 crore. This marks a significant increase compared to the previous year, 2021-22, when the company achieved a net profit of Rs.1.05 crore on total income of Rs. 34.21 crore.
The substantial growth in total income, particularly from Rs.53.11 crore in 2022-23 to Rs.149.42 crore in 2023-24, indicates a strong upward trajectory in the company’s operations.
The leap in net profit from Rs.2.71 crore to Rs.15.68 crore reflects improved operational efficiency and possibly successful project execution.
The EPS of Rs. 21.44 in the current fiscal year signals strong profitability, making the company attractive to potential investors.

While the sharp rise in profits for 2023-24 is noteworthy, it raises concerns about sustainability. If the company struggles to maintain such high profit levels in future, its valuation could be perceived as overly inflated.
A RoNW of 15.84% is healthy and suggests that the company is effectively utilizing shareholders’ equity to generate profits.

Book Value and Valuation

• Book Value of Share (as of 31.03.2024): ₹52.00
• IPO Offer Price (upper band): ₹180

The current book value indicates a significant disparity between the book value and the IPO offer price. The offer price of Rs.180 implies a price-to-book ratio that may be perceived as high, especially considering the substantial increase in profits that raises questions about sustainability.

Conclusion

While Lakshya Powertech Limited demonstrates impressive growth in revenue and profitability leading up to its IPO, investors should remain cautious. The remarkable increase in profits for 2023-24 may not be sustainable in the long term. If the company fails to maintain these profit levels, the high valuation at the IPO price could become a concern.

Potential investors are advised to closely monitor the company’s future performance and market conditions before making investment decisions.

+ from fundamental angle: May Avoid
+ from grey market angle: ?

Quicklinks

• Staffavailable.com
• BigGaddi.com
• ChanakyaMFGuidance.com
• Magajmari.com
• AnalysisLibrary.com

Lakshya Powertech IPO GMP today allotment, review?

Lakshya Powertech IPO GMP grey market premium

Lakshya Powertech IPO FAQs

What is Lakshya Powertech IPO?

This is a SME IPO of 2772800 equity shares of the face value of Rs. 10 aggregating up to Rs.49.91 Crores. The issue is priced at Rs.171-180 per share. The minimum order quantity is 800 Shares.

When will Lakshya Powertech IPO subscription open?

Lakshya Powertech IPO opens on October 16, 2024, and closes on October 18, 2024.

What is the lot size of Lakshya Powertech IPO?

Lakshya Powertech IPO lot size is 800 Shares, and the minimum amount required is Rs.144000

How to apply for Lakshya Powertech IPO?

You can apply in Lakshya Powertech IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.

When is Lakshya Powertech IPO allotment?

The finalization of Basis of Allotment for Lakshya Powertech IPO will be done on October 21, 2024, and the allotted shares will be credited to your demat account by October 22, 2024.

When is Lakshya Powertech IPO listing date?

Lakshya Powertech IPO listing date is October 23, 2024.