Thu Oct 17 03:50:00 UTC 2024: ## Lakshya Powertech IPO Oversubscribed 20 Times in First Two Hours

**Mumbai, India:** The initial public offering (IPO) of power generation firm Lakshya Powertech Limited opened to a strong response in the Indian primary market on Wednesday, October 16th. The IPO, which aims to raise ₹49.91 crore through the issuance of 27.73 lakh shares, saw a staggering 20 times oversubscription within the first two hours of its launch.

The robust demand has pushed the grey market premium (GMP) of the issue to over 90%, indicating that the stock could list at a significant premium. By 12:05 pm, the retail portion of the issue was subscribed 34.36 times, while the non-institutional buyers segment was subscribed 17.75 times.

The IPO is expected to conclude on Friday, October 18th, with the price band set between ₹171 and ₹180 per equity share. Based on the current GMP of ₹169, the stock is anticipated to list at ₹349, representing a 93.89% premium over the upper price band.

Lakshya Powertech specializes in freelance power generation consultancy, operations, and maintenance for gas-fired power plants and large power generation projects. The company has demonstrated strong financial performance, with profits after tax of ₹104.58 lakh, ₹271.09 lakh, and ₹1,567.77 lakh in FY22, FY23, and FY24, respectively.

The IPO proceeds will be utilized to repay borrowings, meet working capital requirements, and fund general corporate purposes. The company expects to finalize share allotment on Monday, October 21st, with successful bidders receiving shares in their demat accounts on Tuesday, October 22nd. The SME IPO is slated to be listed on the NSE SME on Wednesday, October 23rd.

**Key Takeaways:**

* Lakshya Powertech IPO received strong investor interest, oversubscribed 20 times within the first two hours.
* Grey market premium indicates potential listing at a significant premium.
* IPO to raise ₹49.91 crore for debt repayment, working capital, and general corporate purposes.
* The company is expected to finalize allotment on Monday, October 21st, with listing on the NSE SME on Wednesday, October 23rd.

**Disclaimer:** The information presented in this article is for informational purposes only and does not constitute investment advice. Consult a financial advisor before making any investment decisions.

Read More