Brokerages back Laser Power IPO on attractive valuations; should you apply?

Brokerages remain positive on the initial public offering (IPO) of integrated power infrastructure company Laser Power & Infra, citing attractive valuations compared with peers, strong earnings growth, and a healthy order book that provides revenue visibility over the next 12-18 months. 

The company aims to raise ₹742 crore through the IPO, which opens for public subscription on Thursday, July 9, 2026.

 

Ahead of the issue opening, SBI Securities recommended investors subscribe to the IPO with a long-term investment horizon, citing attractive valuations.

 

"At the upper price band of ₹214, the IPO is valued at an FY26 P/E multiple of 25.3x on a post-issue basis. This is significantly lower than some of its larger peers and in line with peers of similar size," said SBI Securities in its report. The brokerage also noted that Laser Power & Infra is a strategically located cable and conductor manufacturer in East India catering to the power transmission segment. It added that the company's location advantage and partnership with a leading global player provide it with an edge over its peers.

 

The company plans to utilise the proceeds for debt reduction, which, the brokerage believes, should reduce the interest cost and help improve profitability.  

 

Swastika Investmart also recommended subscribing to the issue for the medium to long term, citing attractive valuations, lower debt, and favourable sector prospects.

 

The brokerage highlighted that around 90 per cent of the fresh issue proceeds will be used to repay debt, improving profitability. It also noted that the company's FY26 profit grew 42 per cent despite lower revenue, supported by higher Ebidta margins. Further, its order book of ₹3,243 crore, Swastika Investmart said, provides healthy revenue visibility for the next 12-18 months.

 

Grey market trends also indicate positive sentiment towards the public issue. According to sources tracking unofficial market activity, the company's unlisted shares were trading at ₹235 apiece, implying a grey market premium (GMP) of ₹21, or 9.81 per cent, over the upper end of the IPO price band of ₹214.

Laser Power IPO details

Laser Power & Infra IPO comprises a fresh issue of 25.3 million equity shares aggregating to ₹542 crore and an offer for sale (OFS) of up to 9.3 million shares worth ₹200 crore by promoters Deepak Goel, Rakhi Goel, and Devesh Goel.

 

The issue has been priced in the range of ₹203-214 per share, with a lot size of 70 shares. Investors can bid for a minimum of 70 shares and in multiples thereof.

 

A retail investor will require ₹14,980 to apply for one lot, while the maximum application of 13 lots (910 shares) will require an investment of ₹1,94,740.

 

The three-day subscription window will close on Monday, July 13, 2026. The basis of allotment is expected to be finalised on Tuesday, July 14, 2026, while the company's shares are scheduled to list on the stock exchanges on Thursday, July 16, 2026.

 

According to the red herring prospectus (RHP), the company will not receive any proceeds from the offer for sale, as the proceeds will accrue to the selling shareholders.

 

"Each of the Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale in proportion to the Equity Shares offered by the respective Selling Shareholders after deducting their proportion of Offer expenses and relevant taxes thereon. Our Company will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale will not form part of the Net Proceeds," said the company in its RHP.

 

The proceeds from the fresh issue will be used for the prepayment or repayment, in full or in part, of certain outstanding borrowings, with the balance earmarked for general corporate purposes.

 

MUFG Intime India is the registrar to the issue, while IIFL Capital Services and ICICI Securities are the book-running lead managers. 

ALSO READ: Cult.fit files for ₹4,000 crore IPO |   Jefferies on NSE IPO 

About Laser Power & Infra

Laser Power & Infra Ltd is an integrated power infrastructure company with operations across manufacturing and EPC segments. The company manufactures medium- and low-voltage power cables, aerial bunched cables, conductors, control and quad cables, instrumentation cables, aluminium rods, aluminium alloy rods, and armour rods under the LASER brand.  ================================================= 

(Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.)