Lakshya Powertech IPO, Bidding Date, Financials

Lakshya Powertech IPO bidding will open on October 16, 2024, and its closing date is October 18, 2024. The company was established in 2012 and provides Engineering, Procurement, Construction, and Commissioning (EPCC) and Operations and Maintenance (O&M) services in the Oil, Power, Industrial, and Renewable Energy sectors. So, let’s unfold all the thesis behind Lakshya Powertech IPO details, its financials, and underlying risk factors.

Lakshya Powertech IPO Date 2024

The important dates related to Lakshya Powertech IPO are:

• Bidding Opening Date: October 16, 2024
• Bidding Closing Date: October 18, 2024
• Allotment Date: October 21, 2024
• Initiation of Refunds (in case of less or no allotment): October 22, 2024
• Shares Credited to Your Demat Account: October 22, 2024
• Listing Date: October 23, 2024

Lakshya Powertech Limited IPO Details

Its total issue size is ₹49.91 crores, which only has the fresh issue shares and not any OFS selling component.

Here are the key details of this IPO:

• Lakshya Powertech IPO Price Band: ₹171 to ₹180 per share
• Face Value: ₹10 per share
• Lot Size: 800 Shares
• Total Issue Size and Amount: 27,72,800 shares (amounting to ₹49.91 crores)
• Fresh Issue Size and Amount: 27,72,800 shares (amounting to ₹49.91 crores)
• Listing On Exchange: NSE SME

Lakshya Powertech IPO Proceeds

Lakshya Powertech Limited is planning to use the money raised from the IPO in the following ways:

• ₹4.5 crores for prepayment or repayment of some outstanding borrowings.
• ₹30 crores for fulfilling working capital needs.
• Remaining for other corporate requirements.

Lakshya Powertech IPO Reservations

Here are the details of Lakshya Powertech IPO reservations to different investors out of the issue of 27,72,800 equity shares.

• For employee reservation: Up to 72,000 Equity Shares
• For QIBs: Not more than 12,60,800 Equity Shares
• For NIIs: Not less than 3,96,000 Equity Shares
• For retail investors: Not less than 8,96,000 Equity Shares
• Lakshya Powertech IPO Shareholder Quota: As per its RHP filing, there is no shareholder quota.

Lakshya Powertech Lot Size

Lakshya Powertech IPO lot size is 800 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:

Applicant Type	Lot Size	Number of Shares	Amount (in ₹)
Retail (Min)	1	800	1,44,000
Retail (Max)	1	800	1,44,000
HNI (Min)	2	1,600	2,88,000

Lakshya Powertech IPO Promoter Holding

The promoters of Lakshya Powertech are:

• Mr. Rajesh Anne
• Mrs. Priya Bandhavi Anne

Lakshya Powertech: Company Overview

Lakshya Powertech is an Engineering Consultancy and Contracting and O&M company that provides services to four key sectors: Oil and Gas, Power, Renewable Energy, and Industrial. Till now, the company has executed more than 138 projects with the major projects totalling of ₹26,843.1 lakhs. As of August 31, 2024, the company has 45 major ongoing projects.

The Engineering, Procurement, and Construction (EPC) services hold the major share in the company revenue mix, which was 50.12% as of the end of August 31, 2024. The integrated O&M segment has a share of 40.61%.

The company’s key competitive strengths are comprehensive project management expertise, a robust order book, experienced professional services, and operations in different industries. Its geographical footprint spans in Andhra Pradesh, Gujarat, Rajasthan, Uttar Pradesh, etc.

Lakshya Powertech Limited Financials

Lakshya Powertech’s key financial metrics for different periods are as follows:

Particulars	31 Aug 2024	31 Mar 2024	31 Mar 2023	YoY Change
Assets	9,415.91	8,246.31	3,334.85	147%
Total Income	5,815.38	14,941.92	5,311.21	181%
Profit After Tax	597.11	1,567.77	271.09	478%
Net Worth	3,770.80	3,173.71	660.98	380%
EBITDA	947.27	2,318.64	477.67	385%
Total Borrowing	2,916.59	2,900.04	1,448.67	100%
Net Cash Flow from Operating Activities	241.97	-2,217.63	-645.16	-244%
Earnings per Share (in ₹)	8.17	21.75	11.30	92%

*(in ₹ lakhs)

• Assets, total income, and PAT have registered a YoY (year-on-year) growth of 147%, 181%, and 478%, respectively in FY24.
• EBITDA has grown by 385% but the concern is that borrowing also increased by 100%.
• Net cash flow operating activities decreased by 244% from FY23 to FY24, but it turned positive as on August 31, 2024.

Key Ratios of Lakshya Powertech

The key ratios highlighting the company’s performance are:

Particulars	31 Aug 2024	31 Mar 2024	31 Mar 2023	YoY Change
EBITDA Margin	16.29%	15.52%	8.99%	73%
PAT Margin	10.33%	10.58%	5.11%	107%
Return on Net Worth	15.84%	49.40%	41.01%	20%
Return on Capital Employed	13.41%	36.56%	20.55%	78%
Return on Equity	0.16	0.80	0.52	54%
Debt-Equity Ratio	0.83	0.95	2.19	-57%
Net Capital Turnover Ratio	2.09	8.34	8.29	1%
Inventory Turnover Ratio	2.94	42.60	15.59	173%

• Both the key margins, EBITDA margin, and PAT margin have experienced a growth of 73% YoY and 107% YoY, respectively in FY24.
• The RoNW, ROCE, and ROE have also grown positively signifying its strong financial performance.
• The debt-to-equity ratio has seen a drop of 57% which means the company is relying more on equity financing.
• A rise in the inventory turnover ratio means the company is selling its inventory at a faster pace.

Lakshya Powertech Limited IPO: Peer Comparison

The key performance indicators of the Lakshya Powertech Limited and its peers are:

Company Name	Revenue from operations (₹ in lakhs)	Basic EPS (₹)	Diluted EPS (₹)	P/E Ratio	RoNW (%)	NAV Per Share (₹)
Lakshya Powertech	14,813.46	21.75	21.75	–	49.40%	43.41
Asian Energy Services Limited	31,128.48	6.64	6.48	53.56	9.19%	68.35
Engineers India Limited	3,50,002.30	7.92	7.92	23.86	19.74%	40.12

(For FY24 ending)

• Lakshya Powertech EPS is high while its Return on Net Worth is also the highest among its peers.
• The NAV per share of the company is also competitive in the industry.

Risk Factors in Lakshya Powertech Limited

There are multiple risk factors that can affect the company’s financial performance, which are as follows:

1. Not able to qualify, compete, or win the projects that are given through competitive bidding by the government and private companies.
2. Registered and corporate office and workshop areas are not owned by the company.
3. Any delay in the execution and completion of the current and future projects may lead to a loss of cash flows.
4. An increase in the cost of raw materials or a difference in actual cost from the estimated cost could affect the business and cash flows.
5. Negative cash flows in operating and financing activities in some periods. If the same is replicated in the future, the company may not be able to fulfill its working capital needs.
6. More than 85% dependency on the top 10 suppliers for the purchase of products.

Lakshya Powertech IPO Review

Lakshya Powertech IPO GMP can help you analyze the estimated listing price of the stock. However, it does not guarantee the true nature of the IPO-bound stock on the listing day as various factors can come into play like overall market sentiments, global conditions, industry-level changes, etc.

For all the insights on Lakshya Powertech IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening a demat account now.

Lakshya Powertech Limited IPO Contact Information

For inquiries related to the Lakshya Powertech IPO details, you can contact at the following places:

Registered Office Address: A-620 & 621 Siddhivinayak Tower – A, B/H DCP Office, Off. S.G. Highway, Makarba, Jivraj Park, Ahmedabad, Gujarat-380051, India
Phone: +91 9898577752
Email: investor@lakshyapowertech.com
Company Website: http://www.lakshyapowertech.com/

Lakshya Powertech IPO Registrar Details:

Registrar Name: KFIN Technologies Limited
Phone: +91 40 6716 2222
Email: Lakshya.ipo@kfintech.com

Lakshya Powertech IPO Lead Manager Details:

Lead Manager: GYR Capital Advisors Private Limited
Phone: +91 87775 64648
Email: info@gyrcapitaladvisors.com

FAQs

1. Who is the owner of Lakshya Powertech Pvt Ltd?

Mr. Rajesh Anne and Mrs. Priya Bandhavi Anne are the owners of Lakshya Powertech Pvt Ltd.

2. What is the Lakshya Powertech IPO Date 2024?

Lakshya Powertech IPO is an SME IPO that will open on October 16, 2024, and close on October 18, 2024.

3. Is Lakshya Powertech a listed company?

Lakshya Powertech will be listed on the NSE SME platform on October 23, 2024.

Reference
https://lakshyapowertech.com/lib/investors/278668.pdf

Author: All Content is verified by SMC Global Securities.