Lakshya Powertech Limited is coming up with an IPO with a fresh issue of 27,72,800 shares worth INR 49.91 crores. The company aims to repay the borrowings, fund the working capital requirement, and general corporate purposes.
Lakshya Powertech IPO – Important Dates
| Lakshya Powertech Limited IPO Date | October 16, 2024 to October 18, 2024 |
| Lakshya Powertech Limited IPO Listing Date | October 23, 2024 |
| Lakshya Powertech Limited IPO Price | INR 171-180 per share |
| Lakshya Powertech Limited IPO Lot Size | 800 Shares |
| Lakshya Powertech Limited IPO Total Issue Size | INR 49.91 crores |
| Lakshya Powertech Limited IPO Basis of Allotment | October 21, 2024 |
| Lakshya Powertech Limited IPO Initiation of Refunds | October 22, 2024 |
| Lakshya Powertech Limited IPO Credit of Shares to Demat | October 22, 2024 |
| Lakshya Powertech Limited IPO Issue Type | Book Built Issue IPO |
| Lakshya Powertech Limited IPO Listing At | NSE SME |
Read more about Lakshya Powertech Limited IPO GMP
Lakshya Powertech Limited IPO – Company Profile
The company was established in 2012 and started as an engineering consultancy and contracting company, distinguished for its expertise in mechanical and electrical services. The company has embarked as a freelancing consultancy in power generation and it has rapidly transitioned into a multifaceted entity with a robust expansion into Operations and Maintenance (O&M) for Gas Power Generation.
The company has strategically expanded its operations by delving into significant Power Generation Projects, a move that was strengthened by the entry into the Oil and Gas sector. This diversification not only broadened the scope of the services but also solidified the position in the industry.
The global reach was further established through an Engineering, Procurement, and Construction (EPC) Contract in Renewables in Malaysia, and the growth extended into the Operations and Maintenance (O&M) of Oil and Gas facilities.
Lakshya Powertech Ltd IPO Fundamental Analysis
Lakshya Powertech Limited demonstrates strong revenue growth, excellent profitability, reduced financial leverage, and stable liquidity. The high return on equity and consistent growth in EPS and NAV further indicate strong shareholder value creation. The company’s significant debt reduction and improved financial ratios position it well for future growth.
Revenue Analysis:
- Revenue Growth:
- FY2023 revenue stood at ₹5,304.52 lakhs and surged to ₹14,813.46 lakhs in FY2024, reflecting a significant growth of 179%.
- For the first 5 months of FY2025, revenue was ₹5,780.43 lakhs, showing steady progress, but it suggests a slowdown in the revenue growth rate.
2. Expense Management:
- Expense Growth:
- Expenses increased from ₹4,929.47 lakhs in FY2023 to ₹12,905.23 lakhs in FY2024, growing by 161.9%, which is slightly lower than the revenue growth, indicating improved operational efficiency.
- In the first 5 months of FY2025, expenses were ₹5,042.52 lakhs, suggesting efficient cost control despite increased operations.
3. Profitability Metrics:
- Profit After Tax (PAT):
- PAT increased from ₹271.09 lakhs in FY2023 to ₹1,567.77 lakhs in FY2024, an impressive increase of 478.5%.
- For the first 5 months of FY2025, PAT was ₹597.11 lakhs, indicating profitability continues to grow at a healthy rate.
- Earnings Per Share (EPS):
- EPS increased from ₹11.30 in FY2023 to ₹21.75 in FY2024, showing good returns to shareholders.
- EPS for the 5-month period is ₹8.17, reflecting robust earnings potential.
4. Equity and Net Asset Value (NAV):
- Equity Growth:
- Equity saw a substantial rise from ₹660.98 lakhs in FY2023 to ₹3,273.71 lakhs in FY2024, reflecting improved capital structure.
- By August 2024, equity stood at ₹3,373.71 lakhs, showing consistent improvement in the company’s equity base.
- NAV per Equity Share:
- NAV per share increased from ₹27.54 to ₹43.41 in FY2024 and further to ₹51.58 in August 2024, showcasing strong asset value growth.
5. Return on Net Worth (RONW):
- High Efficiency:
- RONW was 41.01% in FY2023, which improved to 49.40% in FY2024, demonstrating the company’s ability to generate high returns for shareholders.
- The 5-month RONW of 15.84% (not annualized) indicates the company’s strong profitability trajectory.
6. Financial Health Indicators:
- Debt-Equity Ratio:
- The company’s debt-equity ratio reduced from 2.19 in FY2023 to 0.95 in FY2024, indicating a significant reduction in leverage, and improving financial stability.
- As of August 2024, the debt-equity ratio is 0.83, further reducing financial risk.
- Current Ratio:
- The current ratio remained stable at 1.53 in both FY2023 and FY2024, improving slightly to 1.57 by August 2024, which indicates the company has adequate short-term liquidity.
7. Overall Financial Strength:
- Asset Growth:
- Total assets grew from ₹3,334.85 lakhs in FY2023 to ₹8,246.31 lakhs in FY2024, and further to ₹9,415.91 lakhs by August 2024, showing strong expansion.
- Liability Growth:
- Liabilities increased from ₹2,673.87 lakhs in FY2023 to ₹4,972.60 lakhs in FY2024, which is in line with the asset growth, maintaining a healthy balance sheet.
Lakshya Powertech IPO Financial Analysis
| Particular | As of 31 March 2023 | As of 31 March 2024 | As of 31 August 2024(5 months) |
| Revenue (₹ in lakhs) | 5,304.52 | 14,813.46 | 5,780.43 |
| Equity (₹ in lakhs) | 660.98 | 3,273.71 | 3,373.71 |
| Expenses (₹ in lakhs) | 4,929.47 | 12,905.23 | 5,042.52 |
| Profit and Loss After Tax (₹ in lakhs) | 271.09 | 1,567.77 | 597.11 |
| Diluted EPS only (₹) | 11.30 | 21.75 | 8.17 |
| NAV per Equity Share (₹) | 27.54 | 43.41 | 51.58 |
| Return on Net Worth (RONW) (%) | 41.01 | 49.40 | 15.84 (not annualised) |
| Total Assets (in lakhs) | 3,334.85 | 8,246.31 | 9,415.91 |
| Total Liabilities (in lakhs) | 2,673.87 | 4,972.60 | 6,042.20 |
| Debt Equity Ratio (in times) | 2.19 | 0.95 | 0.83 |
| Current Ratio (in times) | 1.53 | 1.53 | 1.57 |
Lakshya Powertech Limited IPO Peer Comparison
Lakshya Powertech has the highest RoNW at 49.40% with ₹14,813.46 lakhs in total income. Engineers India leads in total income at ₹3,50,002.30 lakhs, while Asian Energy Services shows moderate figures.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (₹) Diluted | RoNW (%) | NAV(₹) |
| Lakshya Powertech Limited | 14,813.46 | 10 | NA | 21.75 | 49.40 | 43.41 |
| Asian Energy Services Limited | 31,128.48 | 10 | 53.56 | 6.48 | 9.19 | 68.35 |
| Engineers India Limited | 3,50,002.30 | 5 | 23.86 | 7.92 | 19.74 | 40.12 |
Lakshya Powertech Ltd IPO Objective
The main objective of Lakshya Powertech is to utilize INR 4.50 crores to repay borrowings, INR 30 crores for working capital requirements, and the remaining funds for general corporate purposes such as operating expenses and project development.
- To repay the borrowings: The company proposes to utilise INR 4.50 crores from the funds raised to repay the existing borrowings of the company.
- To meet working capital requirements: The company proposes to utilise INR 30 crores towards funding its working capital requirements in the ordinary course of business.
- General corporate purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
Lakshya Powertech IPO Risks And Challenges
Lakshya Powertech faces potential liquidated damages from project delays, negatively impacting cash flows, operations, and financial condition. Rising raw material and labor costs, along with sustained negative cash flow, could further weaken financial health.
- Delays in the completion of current and future projects could lead to payment of liquidated damages, which could have an adverse effect on the cash flows, business, results of operations, and financial condition.
- An increase in the prices of raw materials and labour could have an adverse effect on the business, results of operations, and financial condition.
- The company has had negative cash flows from Operating, investing, and financing activities in the past. Sustained negative cash flow will impact the financial health of the company.
Lakshya Powertech Ltd IPO – Industry & Market Potential
The Indian power EPC market refers to the sector in India that involves the Engineering, Procurement, and Construction (EPC) of power generation and distribution infrastructure. This market encompasses the planning, design, and procurement of equipment and materials, and the construction of power plants, electrical grids, and related facilities necessary for the generation and distribution of electricity in India.
The India power EPC market involves a wide range of projects aimed at ensuring a reliable and efficient power supply to meet the growing energy demands of the nation.
Lakshya Powertech Limited IPO – Type of Offer
Lakshya Powertech Limited is launching an IPO with an offer size of INR 49.91 crores, consisting of a fresh issue of 27,72,800 shares. The company plans to repay borrowings, fund working capital requirements, and address general corporate purposes.
Lakshya Powertech IPO Offer Size
The offer size of Lakshya Powertech Limited’s IPO is INR 49.91 crores, consisting of a fresh issue of 27,72,800 shares. The company plans to utilize the funds to repay borrowings, meet working capital needs, and for general corporate purposes.
Lakshya Powertech Limited IPO Allotment Structure
Lakshya Powertech Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 1,48,000 shares are reserved for market makers and 72,000 shares are reversed for eligible employees.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 1,48,000 shares, are reserved for market makers.
● Eligible Employees: A portion of shares, i.e. 72,000 shares, are reserved for eligible employees.
How to apply for the Lakshya Powertech IPO?
To apply for the Lakshya Powertech Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Lakshya Powertech Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Lakshya Powertech Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Lakshya Powertech IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Lakshya Powertech Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Lakshya Powertech Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Lakshya Powertech Limited IPO:
● Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the Lakshya Powertech Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official website of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Lakshya Powertech Ltd IPO Offer Registrar
The registrar for the Lakshya Powertech Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Kfin Technologies Limited
Selenium Tower-B, Plot 31 & 32,
Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Email: [email protected]
Website: www.kfintech.com
Lakshya Powertech IPO – FAQs
1. What is the allotment date of the Lakshya Powertech IPO?
The allotment date of the Lakshya Powertech Limited IPO is October 21, 2024.
2. What is the price band of the Lakshya Powertech IPO?
The price band of the issue is INR 171-180 per share.
3. What is the size of the Lakshya Powertech IPO?
The offer size of Lakshya Powertech Limited’s IPO is INR 49.91 crores, consisting of a fresh issue of 27,72,800 shares. The company plans to utilize the funds to repay borrowings, meet working capital needs, and for general corporate purposes.
4. What is the listing date of the Lakshya Powertech IPO?
The listing date of Lakshya Powertech Limited’s IPO is October 23, 2024.
