Laser Power & Infra lists today after 39x oversubscribed IPO
Laser Power & Infra begins trading on Indian exchanges after a heavily oversubscribed offering, with the market's focus shifting to the cable maker's aggressive debt reduction.
Laser Power & Infra shares begin trading on the BSE and NSE today at 10:00 AM, with the stock assigned to the exchange's 'B' Group of Securities. The listing follows an initial public offering that closed on July 13 after drawing demand 38.94 times the shares on offer. The integrated manufacturer of power cables and conductors priced its IPO at the top of its ₹203 to ₹214 range, raising a total of ₹742 crore.
The offering comprised a fresh issue of 2.53 crore equity shares worth ₹542 crore, alongside an offer for sale of 93.45 lakh shares aggregating to ₹200 crore. IIFL Capital Services Ltd. managed the book-building process, while MUFG Intime India Pvt. Ltd. acted as registrar. Trading will initially commence through a Special Pre-open Session before the regular market opens.
Ahead of the listing, unlisted market activity pointed to a strong debut. The grey market premium stood at ₹40 per share, representing an 18.69% premium over the upper issue price of ₹214. This unregulated market indicator suggests an estimated listing price around ₹254.
However, the structural appeal for longer-term investors lies in the company's balance sheet restructuring rather than the immediate listing premium. Of the ₹542 crore raised through fresh shares, approximately ₹490 crore is earmarked to pay down part of an existing ₹828 crore borrowing stack.
The valuation gap highlights the market's distinction between pure-play cable manufacturers and businesses with significant engineering, procurement, and construction exposure. Investors will now monitor whether management can translate the deleveraging into sustained margin expansion.
“The re-rating case rests on execution and margin delivery after deleveraging, not on the listing-day pop,” Prashar said.
