Lakshya Powertech shares list at 90% premium over IPO price on NSE SME platform

By

Akash Podishetti

, ETMarkets.comLast Updated: Oct 23, 2024, 09:59:00 AM IST

Synopsis

Lakshya Powertech's shares debut on the NSE SME platform at a 90% premium, opening at Rs 342 against an issue price of Rs 180. Funds from the public offer will address debt repayment, working capital, and general corporate needs. The company operates in oil and gas, renewable energy, power, and industrial sectors.

The shares of Lakshya Powertech debuted on the NSE SME platform at a premium of 90% on Wednesday. The stock opened at Rs 342, compared to an issue price of Rs 180.

The net proceeds from the public offer will be used for repayment of debt, working capital requirements, and general corporate purposes. The company started as an engineering consultancy and contracting firm, distinguished for its expertise in mechanical and electrical services. It then transitioned into a multifaceted entity with robust expansion into operations and maintenance (O&M) for gas power generation.

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

Lakshya Powertech is predominantly engaged across four key sectors: Oil and Gas, Power, Renewable Energy, and Industrial. Our services are organized into four primary divisions: EPC, integrated operation and maintenance services, and special services.

Within these segments, the company delivers comprehensive solutions tailored to meet the unique needs of clients, ensuring excellence at every stage of project execution.

Over the years, the company has successfully executed more than 138 projects, with major completed projects totaling approximately Rs 268 crore. As of August 2024, the company has 45 major ongoing projects, of which 45 projects worth Rs 432 crore have been confirmed.

According to the Central Electricity Authority (CEA), the share of renewable energy generation is expected to increase from 18% to 44% by 2029-30, while thermal generation is projected to decrease 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.

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