Laser Power IPO draws full subscription despite revenue dip
Laser Power & Infra's Rs 742-crore Indian public offering was fully subscribed by its second day, testing investor appetite for a power cable maker whose profits are rising but revenue is contracting and customer concentration is growing.
Laser Power & Infra’s Rs 742-crore initial public offering was fully subscribed by the end of its second day of bidding. The issue received bids for all 2.55 crore shares on offer, supported by a grey market premium of Rs 36 that indicates a 17% premium over the upper price band of Rs 214.
The strong demand arrives despite a mixed financial performance for the fiscal year ending March 31, 2026. Total income fell 9% year-on-year to Rs 2,347.89 crore, down from Rs 2,592.53 crore in FY25. However, profit after tax surged 42% to Rs 151.59 crore, pointing to improved operational efficiency and better margins rather than top-line growth.
Investors appear willing to look past the revenue contraction, likely drawn by the company's substantial order backlog. As of late March, the power transmission and distribution firm reported an order book of Rs 3,243 crore, which should provide clear near-term revenue visibility. The company operates three manufacturing facilities in West Bengal with a combined capacity of 85,448 metric tonnes, while executing turnkey engineering, procurement and construction projects across 26 Indian states, four Union Territories, and 10 international markets.
A significant portion of the IPO proceeds is earmarked to strengthen the balance sheet. The company plans to use Rs 490 crore from the Rs 542-crore fresh issue to prepay outstanding borrowings. The remaining funds will cover general corporate purposes. An additional Rs 200 crore is being raised through an offer for sale of 0.93 crore shares by promoter shareholders Deepak Goel, Rakhi Goel, and Devesh Goel.
Concentration risk
Market professionals will likely note the company's increasing reliance on a narrow client base. The top 10 customers accounted for 72.14% of total revenue in FY26, a sharp increase from 53.37% just two years earlier. The company's prospectus warns that contract cancellations, execution delays, or a loss of business from these key clients could severely impact cash flows and profitability.
The retail investor portion of the IPO was subscribed at 80% by day two, indicating that institutional bidders are driving the overall full subscription. Shares are priced between Rs 203 and Rs 214 in minimum lots of 70. IIFL Capital Services is managing the book, with MUFG Intime India serving as registrar. Share allotment is scheduled for July 14, 2026, with trading expected to begin on the NSE and BSE on July 16.
