Wed Oct 16 16:10:52 UTC 2024: ## Lakshya Powertech IPO Overwhelmed by Investor Demand
Lakshya Powertech’s initial public offering (IPO) has received an overwhelming response from investors on the first day of bidding, with retail and non-institutional investors driving the demand.
The engineering consultancy and contracting company, which specializes in mechanical and electrical services, aims to raise Rs 49.91 crore through its IPO. The issue, which closes on October 18, has a price band of Rs 171-180 per share.
Investors have already subscribed 55.81 times the offer size, with retail investors showing the highest enthusiasm, subscribing 97.6 times their allotted portion. Non-institutional investors followed closely with a subscription of 65.9 times, while qualified institutional buyers (QIBs) showed less interest, subscribing 1.34 times their allotted quota.
Lakshya Powertech, incorporated in 2012, has a strong track record in the EPCC (engineering, procurement, construction, and commissioning) services market, particularly in the oil and gas, power, industrial, and renewable energy sectors. The company plans to utilize the IPO proceeds to repay debt, fund working capital, and for general corporate purposes.
The company’s strong financial performance in recent years, with a significant increase in net profit and revenue, further fueled investor interest.
The grey market premium for Lakshya Powertech IPO shares has consistently been increasing, currently quoting at more than 90% over the upper price band, reflecting the strong demand from the market.
The overwhelming response to Lakshya Powertech’s IPO points to a positive sentiment towards the Indian IPO market, particularly from retail investors.
First Piper 