Railway infrastructure firm Laxyo has received SEBI approval to raise ₹150 crore through an IPO. The company plans to use the funds to lower its debt and support capital spending. Investors should monitor its high reliance on the railway EPC segment, which contributes over 60% of its total revenue.
Madhya Pradesh-based infrastructure provider Laxyo has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering. The company, which specializes in railway Engineering, Procurement, and Construction (EPC) services, aims to raise ₹150 crore through a fresh issue of equity shares. This regulatory clearance allows the company to launch its public issue anytime within the next twelve months.
Use of IPO Funds and Debt Position
The company’s primary objective for this capital raise is to strengthen its balance sheet and support operational needs. A significant portion of the proceeds, approximately ₹70 crore, is earmarked for the repayment of outstanding debt. As of March 2026, the company reported a total debt of ₹121.7 crore, meaning the IPO could substantially reduce its borrowing costs and improve its financial flexibility.
Beyond debt reduction, Laxyo plans to allocate ₹9.7 crore toward capital spending for the purchase of new equipment. Additionally, ₹23 crore is set aside for working capital, which covers the day-to-day cash requirements needed to run its ongoing projects. The company may also consider a pre-IPO placement of up to ₹30 crore, which would effectively reduce the total size of the fresh issue offered to the public.
Business Model and Revenue Concentration
Laxyo operates across several specialized engineering segments, including mining services, dredging, and industrial plant maintenance. However, its railway infrastructure business is the core driver of its financial performance. This segment—which involves complex tasks like track laying, linking, and mechanized maintenance—accounted for 66% of the company's total revenue in the 2025 financial year. This contribution remained high at 63% during the six months ending September 2025.
For investors, this reliance on the railway segment means that the company’s growth is closely tied to government infrastructure spending and the steady flow of contracts from both public and private clients. Changes in railway procurement policies or delays in project execution could directly affect the company's future revenue.
Indorient Financial Services has been appointed as the sole book-running lead manager for the offering. The next step for the company will be deciding the timing of the share sale, which will depend on current market conditions and internal management decisions regarding the valuation and the potential pre-IPO placement.