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DRChoksey Report
Here are 10 key things investors should know before bidding:
1. IPO Size
The IPO is worth Rs 742 crore, comprising a fresh issue of Rs 542 crore and an offer-for-sale (OFS) of Rs 200 crore.
2. Price Band
The Kolkata-based manufacturer of electrical solutions for the power transmission and distribution sector, has fixed the price band at Rs 203-214 per share. At the upper end of the band, the post-issue market capitalisation is estimated at around Rs 3,004 crore.
3. Important Dates
The offer opened for subscription on July 09 and the public issue closes on July 13, while the tentative allotment is expected on July 14. Shares are likely to be credited to investors’ demat accounts on July 15, with listing tentatively scheduled to list on NSE and BSE for July 16.
4. How Will the IPO Proceeds Be Used?
The company plans to utilise a major portion of the fresh issue proceeds for repayment and prepayment of borrowings, with the balance earmarked for general corporate purposes. Around Rs 490 crore will be used toward debt reduction.
5. What Does the Company Do?
Laser Power and Infra manufactures power cables, conductors, railway signalling cables, aerial bunched cables and specialty products. It also undertakes turnkey EPC projects for power distribution networks, substations, underground cabling and related infrastructure works. The manufacturing business contributed around 72% of FY26 revenue, while EPC accounted for about 27%.
6. Strong Order Book
The company’s order book rose 49.3% over FY24-FY26 to Rs 3,243 crore, providing revenue visibility. DRChoksey noted that the order backlog is equivalent to around 1.4 times FY26 revenue, supporting future growth.
7. Financial Performance
Laser Power reported revenue CAGR of around 21% and profit CAGR of 74% during FY23-FY26. Ebitda margins improved from 8.5% in FY23 to 13% in FY26, while net profit increased to Rs 152 crore in FY26 from Rs 23 crore in FY23.
8. Key Growth Drivers and peers
According to DRChoksey, the company is well positioned to benefit from India’s ongoing investment cycle in power transmission and distribution. It also has a technology partnership with US-based TS Conductor Corp for advanced HTLS/AECC conductors used in grid modernisation projects.
Comparable companies such as Polycab India, KEI Industries, Apar Industries, RR Kabel and Diamond Power Infrastructure trade at substantially higher multiples, indicating room for valuation re-rating if the company sustains its growth trajectory and margin expansion.
9. Valuation
At the upper end of the price band, Laser Power is valued at 19.8 times FY26 earnings and 12.6 times EV/Ebitda.
DRChoksey said this represents a discount to the broader listed peer group, which trades at significantly higher valuation multiples.
10. Key Risks
Investors should monitor the company’s high working capital requirements, dependence on government utilities for payments, declining capacity utilisation, execution risks in EPC projects and sensitivity to government-led infrastructure spending. Commodity price volatility also remains a key risk.
Brokerage View
DRChoksey has assigned a’Subscribe’ rating to the IPO, citing the company’s integrated manufacturing and EPC capabilities, expanding order book, improving margins, deleveraging plans and favourable industry tailwinds. The brokerage believes the valuation is reasonable given the company’s growth prospects and exposure to India’s multi-year power infrastructure capex cycle.
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