Laser Power shares list at 26% premium over IPO price, beat estimates

Laser Power & Infra made a strong debut on the domestic bourses on Thursday, with shares of the power transmission and distribution equipment maker listing at up to a 26% premium despite a muted broader market.

The stock debuted at ₹269 on the BSE, a premium of 25.70% over its IPO price of ₹214. On the NSE, it listed at ₹250, up 16.82% from the issue price.

After listing, Laser Power shares climbed further to an intraday high of ₹269.80 on the BSE and ₹270 on the NSE. At the time of writing, the stock was trading at ₹262.65, up 22.73% over the issue price, valuing the company at around ₹3,693 crore.

Listing exceeds expectations

The listing of Laser Power exceeded grey market expectations. Ahead of its debut, the stock was commanding a grey market premium (GMP) of around ₹39, implying an expected listing price of about ₹253 per share, or an 18% premium.

Ravi Singh, Chief Research Officer at Master Capital Services, said Laser Power delivered a strong market debut, backed by robust sectoral tailwinds.

Singh noted that India's wires and cables market expanded from ₹78,700 crore in FY20 to ₹1.40 lakh crore in FY25, registering a CAGR of 12.3%, and is expected to reach ₹2.35-2.55 lakh crore by FY30, driven by infrastructure development, railway electrification, smart grid investments, digital connectivity, and rising exports.

He said short-term traders can benefit from the listing momentum, while long-term investors should focus on the company's execution and financial performance to capitalise on India's growing infrastructure and power transmission spending.

"Future price movement, however, is likely to depend more on the company's performance than on listing optimism," he added.

Shivani Nyati, Head of Wealth at Swastika Investmart, also maintained a positive outlook. She said the company's fundamentals remain strong, with nearly 90% of the IPO proceeds earmarked for debt repayment and a healthy order book of ₹3,243 crore, providing strong revenue visibility.

She advised investors who received allotment to continue holding the stock for the medium to long term, while fresh investors may consider accumulating it on dips, with a stop-loss at ₹225.

IPO subscribed 39x

The ₹742-crore IPO of Laser Power & Infra, which was open for subscription from July 9 to July 13, was subscribed 38.94 times overall, led by strong institutional demand. The IPO comprised a fresh issue of ₹542 crore and an offer for sale (OFS) worth ₹200 crore. The price band was fixed at ₹203-214 per share, valuing the company at over ₹3,000 crore at the upper end.

The qualified institutional buyer (QIB) portion was subscribed 92.25 times, while the non-institutional investor (NII) category was subscribed 43.34 times. The retail investor quota was subscribed 6.59 times, according to exchange data.

Ahead of the public issue, the Kolkata-based company raised ₹222 crore from anchor investors by allotting 1.04 crore equity shares at ₹214 apiece, the upper end of the price band.

The company plans to use the bulk of the fresh issue proceeds to reduce debt. In an earlier interview with Fortune India, Chairman and Managing Director Deepak Goel said ₹490 crore has been earmarked for the repayment or prepayment of borrowings.

"The primary raise of around ₹500 crore will reduce our debt by more than 50%. With this reduction, our balance sheet will become lighter and our cost of funding will come down, which will ultimately reflect in our bottom line," Goel said.

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