Laser Power and Infra Ltd Gears Up for Rs 1,500-Crore IPO

Kolkata-based Laser Power and Infra Ltd (LPIL), a prominent player in the cable and conductor manufacturing sector, is set to make a significant move in the capital markets. The company is preparing to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) this month, aiming to raise between Rs 1,200 crore to Rs 1,500 crore through an initial public offering (IPO).

Valuation and Financial Performance

LPIL is targeting a valuation range of Rs 5,500 crore to Rs 6,500 crore through this public offering. The company has demonstrated strong financial performance, reporting a revenue of Rs 1,621.23 crore, marking a substantial growth of 31.4% from Rs 1,233.91 crore in the previous fiscal year.

Business Overview

Founded by Deepak Goel, LPIL has established itself as a key player in the Engineering, Procurement, and Construction (EPC) segment. The company specializes in manufacturing a wide range of products including wires, cables, conductors, and transmission products, catering to both domestic and international markets.

Project Execution and Order Book

LPIL boasts an impressive track record in project execution. One of its notable achievements includes the electrification of over 12,000 villages. The company's strong market position is further evidenced by its robust order book, which currently exceeds Rs 3,500 crore, spanning more than 25 ongoing projects.

Client Base and Manufacturing Capacity

The company has built a diverse and prestigious client base, supplying its products to both state and central power distribution companies. Some of its key clients include:

• Power Grid Corporation of India Ltd (PGCIL)
• National Thermal Power Corporation (NTPC)
• West Bengal State Electricity Distribution Company Limited (WBSEDCL)
• Private sector giants like Tata Power and Tata Steel

LPIL's manufacturing prowess is reflected in its annual production capacity of approximately 70,000 metric tonnes.

Technological Advancement

In a move to enhance its technological capabilities, LPIL has partnered with US-based TS Conductor for advanced conductor technology. This collaboration is expected to strengthen the company's product offerings and competitive edge in the market.

Market Impact

The proposed IPO by Laser Power and Infra Ltd is likely to draw significant attention in the power and infrastructure sectors. As the company prepares to go public, investors will be keenly watching how this established player in the cable and conductor manufacturing industry positions itself in the stock market.

The success of this IPO could potentially provide LPIL with the capital needed to further expand its operations, take on larger projects, and invest in cutting-edge technologies, thereby strengthening its position in the competitive power infrastructure landscape.