Laser Power raises ₹222 crore from anchor investors ahead of ₹742-crore IPO; GMP up 7%
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Power transmission and distribution equipment maker Laser Power & Infra has raised ₹222 crore from anchor investors ahead of the opening of its initial public offering (IPO) today. The Kolkata-based company allotted 1.04 crore equity shares to anchor investors at ₹214 per share, the upper end of the IPO price band, according to an exchange filing.
Among the prominent anchor investors are Nippon Life Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund, Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Edelweiss Mutual Fund, Bank of India Mutual Fund, 3P India Equity Fund, Kotak Mahindra Life Insurance, Edelweiss Life Insurance, Societe Generale, Buoyant Capital AIF, Sanshi Fund and SageOne.
Of the total anchor allocation, 76.63 lakh equity shares, or 73.67%, were allotted to eight domestic mutual funds through 12 schemes.
GMP up 7% ahead of IPO opening
The ₹742-crore IPO of Laser Power, comprising a fresh issue of ₹542 crore and an offer for sale (OFS) of ₹200 crore, opens for public subscription today and will close on July 13. The company has fixed a price band of ₹203-214 per share, valuing it at over ₹3,000 crore at the upper end.
Ahead of the IPO opening, the company was commanding a grey market premium (GMP) of ₹15 per share in the unlisted market, indicating an estimated listing price of around ₹229, or a premium of about 7% over the issue price. However, the GMP is an unofficial indicator and does not guarantee listing performance.
The company plans to utilise the fresh issue proceeds primarily to strengthen its balance sheet by reducing debt. In an interview with Fortune India, Chairman and Managing Director Deepak Goel said the company 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.
As of June 17, 2026, Laser Power had outstanding borrowings of ₹935.7 crore.
Goel also said the company consciously reduced the IPO size from the ₹1,200 crore proposed in its draft papers following investor feedback during the listing process.
Brokerage view
Several brokerages have assigned a 'Subscribe' rating to the IPO for investors with a long-term investment horizon. They believe Laser Power's strategic manufacturing presence in eastern India and its partnership with a leading global player provide a competitive edge in the power transmission segment.
SBI Securities has recommended a 'Subscribe' rating for the IPO, valuing the issue at a post-issue FY26 price-to-earnings (P/E) multiple of 25.3x at the upper end of the price band. The brokerage said the valuation is lower than those of larger listed peers and broadly in line with companies of similar size. It also expects the proposed debt reduction to lower interest costs and improve profitability over the medium term.
Headquartered in Kolkata, Laser Power manufactures power cables, conductors, and transmission and distribution equipment supplied to utilities and infrastructure companies. The company has also expanded into the engineering, procurement and construction (EPC) segment, executing rural electrification, power distribution and substation projects.
The company is a licensed stranding partner of U.S.-based TS Conductor and serves customers including Indian Railways, power distribution utilities in Odisha, and private EPC companies such as Montecarlo Ltd and KRYFS Power Components.
Laser Power operates three manufacturing facilities in West Bengal with a combined installed production capacity of 85,448 metric tonnes as of March 31, 2026.
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