Thu Oct 17 03:50:00 UTC 2024: ## Lakshya Powertech IPO Overwhelmed by Investor Demand on Day One
**Hyderabad, India** – Lakshya Powertech, an engineering consultancy and contracting company specializing in mechanical and electrical services, witnessed a massive surge in investor interest on the first day of its initial public offering (IPO). The IPO, which opened on October 16th, saw a subscription level of 55.81 times the offer size, with retail and non-institutional investors driving the demand.
Investors have subscribed to 11.32 crore equity shares so far, exceeding the offer size of 20.28 lakh equity shares by a significant margin. The strong response comes despite the recent trend of underperformance in IPOs, with 18 out of the top 30 IPOs underperforming the Nifty 500 index.
Lakshya Powertech aims to raise Rs 49.91 crore through the IPO, which comprises a fresh issue of 27.72 lakh equity shares. The price band for the issue, closing on October 18th, has been fixed at Rs 171-180 per share.
The company has a strong track record of financial performance, with net profit for the year ended March 2024 increasing by 478.3 percent year-on-year to Rs 15.7 crore, and revenue climbing 179.3 percent to Rs 148.1 crore compared to the previous fiscal.
Lakshya Powertech plans to utilize the IPO proceeds to repay debt, fund working capital requirements, and for general corporate purposes. The company’s specialization in EPCC services for various sectors, including oil and gas, power, and renewable energy, has contributed to its strong growth.
The grey market premium for Lakshya Powertech IPO shares has been steadily increasing, currently quoted at more than 90 percent premium over the upper price band. The overwhelming response on the first day of bidding suggests a strong market interest in the company, despite the recent IPO market trends.
First Piper 