Wed Oct 16 14:05:36 UTC 2024: ## Lakshya Powertech IPO Oversubscribed by 20 Times on Day 1
Lakshya Powertech Limited, a power generation company, saw a strong start to its initial public offering (IPO) on Wednesday, October 16th. The IPO, which is set to raise ₹49.91 crore, was oversubscribed by nearly 20 times within the first two hours of its launch.
The retail portion of the issue was subscribed 34.36 times, while the non-institutional buyers’ segment saw 17.75 times oversubscription. The IPO is open for subscription until Friday, October 18th.
The strong demand reflects confidence in the company’s future prospects. Lakshya Powertech specializes in freelance power generation consultancy and operations & maintenance for gas-fired power plants and large generation projects. The company’s profit after tax has seen significant growth, reaching ₹1,567.77 lakh in FY24.
According to market sources, the grey market premium (GMP) for Lakshya Powertech was ₹169 around 12:05 pm on Wednesday. This indicates a potential listing premium of over 90%, with shares expected to be listed at ₹349.
The IPO is available in lots of 800 shares, with a price band of ₹171 to ₹180 per share. The company plans to use the funds raised for paying borrowings, meeting working capital requirements, and general corporate purposes.
The final share allotment is expected on Monday, October 21st, with successful bidders receiving shares in their demat accounts the following day. The IPO is set to be listed on the NSE SME on Wednesday, October 23rd.
**Key Takeaways:**
* Lakshya Powertech IPO oversubscribed by 20 times on the first day.
* Strong demand indicates investor confidence in the company’s growth potential.
* IPO expected to list at a premium of over 90%.
* Allotment expected on October 21st, listing on October 23rd.
**Disclaimer:** This news article is based on publicly available information and should not be considered investment advice. Investors should consult with certified experts before making any investment decisions.
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