Lakshya Powertech IPO booked 30x so far on Day 1

Bucking the trend of recent slowdown in SME IPOs, Lakshya Powertech's issue has been garnering strong demand from investors. The issue, which opened for bidding earlier today, was already subscribed 30 times.

This demand was driven by retail investors, whose category was booked over 50 times, followed by non-institutional investors at 24 times.

The company's shares are commanding a GMP of Rs 169 in the unlisted market, which indicates a premium of 94%. However, it should be noted that the listing price is capped at 90%.

The net proceeds from the public offer will be used for repayment of debt, working capital requirements and general corporate purposes.

The company started its journey as a freelancing consultancy in power generation and rapidly transitioned into a multifaceted entity with a robust expansion into operations and maintenance (O&M) for gas power generation.

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Lakshya Powertech started as an engineering consultancy and contracting Company, distinguished for its expertise in mechanical and electrical services. It rapidly transitioned into a multifaceted entity with a robust expansion into operations and maintenance (O&M) for gas power generation.

The company strategically expanded its operations by delving into power generation projects, a move that was strengthened by the entry into the oil and gas sector.

This diversification not only broadened the scope of the company's services but also solidified our position in the industry.

According to the Central Electricity Authority (CEA), the share of renewable energy generation would increase from 18% to 44% by 2029-30 and thermal is expected to see a reduction from 78% to 52%.

The government of India plans to establish a renewable capacity of 500 GW by 2030 and has allocated $1.4 trillion under the National Infrastructure Pipeline for FY 2019-25.

GYR Capital Advisors is acting as the lead manager to the issue and Kfin Technologies is the registrar.