Lakshya Powertech Limited started as an engineering consultancy firm specializing in mechanical and electrical services and has avoved into EPC, design and into operations and maintenance (O&M) for gas-fired power plants and large power generation projects. Lakshya Powertech IPO is set to raise Rs 49.91 crores. The issue is entirely a fresh issue of 27.73 lakh shares.
IPO opens
October 16, 2024
IPO Closes
October 18, 2024
IPO Size (Rs.)
₹49.91 Cr
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹158 to ₹166 per share
Minimum Lot
₹10 per share
Listing At
NSE SME
QIB Quota
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
GYR Capital Advisors Private Limited
Registrar
Kfin Technologies Limited i
Market maker
Giriraj Stock Broking.
About Lakshya Powertech IPO
Company established in the year 2012, started as an Engineering Consultancy and Contracting Company.
They embarked as a freelancing consultancy in power generation but rapidly expanded operations by delving into significant Power Generation Projects, a move that was strengthened by entry into the Oil and Gas sector.
They further established through an Engineering, Procurement, and Construction (EPC) Contract in Renewables in Malaysia, and growth extended into the Operations and Maintenance (O&M) of Oil and Gas facilities.
They are predominantly engaged across four key sectors: Oil and Gas, Power, Renewable Energy, and Industrial.
Their services are organized into four primary divisions:
(i) Engineering, Procurement, Construction & Commissioning;
(ii) Integrated Operation & Maintenance Services;
(iii) Special Services.
Their capabilities encompass the Fabrication and Manufacturing of a wide array of engineering and process equipment, further supported by specialized services such as testing & commissioning, overhauls, and refurbishing/retrofitting, ensuring optimal performance across multi-discipline and multi-sector projects and Trading operations.
Mr. Junaid Ahmed, Mr. Iqbalahmed Khudrathullah Mohammed, and Mrs. Asma Syed are the company’s promoters.
Financials: Lakshya Powertech IPO
Particulars/Rs Lacs
31-Aug-24
Fiscal 2024
Fiscal 2023
Fiscal 2022
Revenue from Operations
5,780.43
14,813.46
5,304.52
3,414.33
Growth in revenue (%)
NA
179.26%
55.36%
58.99%
Total Income
5,815.38
14,941.92
5,311.21
3,421.39
EBITDA
947.27
2,318.64
477.67
201.7
EBITDA Margin (%)
16.29%
15.52%
8.99%
5.90%
Restated profit
597.11
1,567.77
271.09
104.58
PAT Margin (%)
10.33%
10.58%
5.11%
3.06%
Return on Net Worth
15.84%
49.40%
41.01%
26.82%
Debt- Equity Ratio
0.83
0.95
2.19
1.51
Post issue Share Capital
1008
FV
10.0
IPO price
180.0
EPS Fy24
15.6
PE Fy24
11.6
EPS Fy25 (annualized)
14.2
PE Fy25 (annualized)
12.7
Market cap in Lacs
18,144
Market cap / Sales
1.21
Lakshya Powertech IPO: Anchors
Lakshya Powertech IPO: Salient Points
As at August 31, 2024, they have 45 major on-going projects out of which 45 projects worth approximately ₹ 43,199 Lakhs has been confirmed based on Letter of Allocation. Purchase Order for which ₹ 26,595 Lakhs worth project execution is pending.
Sector wise bifurcation
Industry Type
Period ended August 31, 2024
FY 2023-24
FY 2022-23
FY 2021-22
Public Sector Undertaking
746.73
1587.37
1113.92
37.92
Private Entities
4873.76
13226.09
4190.60
3376.41
Total Revenue
5620.49
14813.46
5304.52
3414.33
Ongoing EPCC projects undertaken by Company.
Sr.No.
Client Name
Brief Description of Project
Location
Agreement Amount
Work Completed as on 31.05.2024
Work Order in hand
1.
Equinox Engineering Ltd
LSTK of surface facilities and pipeline networks for CBM, Jharia block – Parbatpur GCS – Bokaro asset
Jharkhand
18426.91
6509.26
11917.65
2.
GMMCO Limited
Supply of BOP Equipment, Erection & Commissioning of 34 MWe Emergency power Generation with Diesel Generator Set
Maharashtra
892.22
666.00
226.22
3.
Powerica Limited
Supply of BOP Equipment, Erection & Commissioning of 16 MWe Emergency power Generation with Diesel Generator Set along with Double wall HSD fuel system
Maharashtra
1085.76
833.51
252.25
Total
20404.89
8008.77
12396.12
Net proceeds use :
Sr. No.
Particulars
Estimated amount
1.
Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our company
Upto 450.00
2.
Funding of the working capital requirement of our Company
Upto 3000.00
PE 2024: 11.6x
Peers: Company has shown Asian Energy Services, Engineers India as listed peers. They are trading at higher PE but in true sense they are not comparable.
They provide the Integrated Operations and Maintenance service to the Power, Oil & Gas, Renewables Industry.
Company specializes in offering comprehensive engineering, procurement, and construction services tailored to the oil and gas industry.
They also offer emergency power solutions, optimizing fuel handling systems for sustainability and efficiency, and offering comprehensive, end-to-end services for Data Centre operations.
I intend to apply in Lakshya Powertec IPO. India power EPC market has good outlook. Company clients include names like Triveni turbines, IOCL, Megha Engineering & Infrastructures Limited, Kirloskar Pneumatic, APCOTEX, Powerica Limited, Larsen & Toubro. Atul Limited etc.
GMP as reported on social media is Rs. 169(74%)
Lead manager has excellent record and enjoys good standing.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
