Laser Power IPO subscribed 38.94 times on final day; QIB portion booked 92x
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The ₹742-crore initial public offering (IPO) of Laser Power & Infra garnered an overall subscription of 38.94 times on the final day of bidding, driven by robust demand from qualified institutional buyers (QIBs).
The QIB portion was subscribed 92.25 times, while the non-institutional investor (NII) category received bids for 43.34 times the shares on offer. The retail individual investor (RII) quota was subscribed 6.59 times, according to exchange data.
Overall, the IPO of the power transmission and distribution equipment maker received bids for 99.63 crore equity shares worth ₹21,321 crore against the 2.56 crore shares on offer, translating into an overall subscription of 38.94 times. The issue attracted 11.53 lakh applications.
Within the NII segment, the portion reserved for bidders applying for more than ₹10 lakh was subscribed 47.74 times, while the category for applications between ₹2 lakh and ₹10 lakh was subscribed 34.55 times.
Ahead of the IPO, 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 Laser Power IPO comprises a fresh issue of ₹542 crore and an offer for sale (OFS) of ₹200 crore. The company had fixed a price band of ₹203-214 per share, valuing it at over ₹3,000 crore at the upper end of the price band.
The company plans to utilise the proceeds from the fresh issue primarily to reduce debt. In an interview with Fortune India, Chairman and Managing Director Deepak Goel said Laser Power has earmarked ₹490 crore from the fresh issue 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.
Ahead of the issue's close, the company's shares were commanding a grey market premium (GMP) of around ₹43, indicating an estimated listing price of about ₹257 per share, or a premium of nearly 20% over the upper end of the issue price. The GMP had nearly doubled from around ₹24 when the IPO opened for subscription. However, the grey market premium is an unofficial indicator and does not guarantee listing performance.
The basis of allotment is expected to be finalised on July 14, while the company's shares are scheduled to list on the stock exchanges on July 16.