The ₹742 crore IPO of Laser Power & Infra closed on July 13 with an overall subscription of 2.5 times, led by strong demand from non-institutional investors. The company intends to use the fresh issue proceeds primarily to reduce its debt burden. Investors should note the company's recent performance, which saw a revenue decline despite a rise in net profit.
Laser Power & Infra successfully closed its initial public offering on July 13, 2026, receiving bids for 6.62 crore shares against the 2.55 crore shares on offer. The final subscription level stood at approximately 2.5 times. Demand was particularly strong within the non-institutional investor category, which saw an oversubscription of 7.22 times, while retail investors subscribed 1.71 times their allocated portion.
Debt Reduction and Financial Performance
The total IPO size of ₹742 crore is structured as a mix of a fresh issue and an offer-for-sale. The company plans to use the proceeds from the fresh issue, amounting to ₹542 crore, mainly to prepay its existing borrowings. As of June 17, 2026, the company reported outstanding debt of ₹935.7 crore. Reducing this debt is a primary objective, as it could help lower interest costs and improve the balance sheet strength in future quarters.
Financially, the company reported a revenue of ₹2,326.1 crore for the fiscal year ending March 2026, marking a 9.5% decline compared to the previous period. Despite this, the company reported a 42% increase in profit after tax to ₹151.6 crore. This growth in bottom-line profit, even with a drop in top-line revenue, reflects improvements in operating efficiency during the year.
Business Context and Sector Dynamics
Headquartered in Kolkata and founded in 1988, Laser Power & Infra operates three manufacturing units in West Bengal. The business is bifurcated into two main segments: manufacturing, which accounts for 73% of its revenue, and engineering, procurement, and construction (EPC) projects, contributing the remaining 27%.
While the company holds a notable presence in the power cable market in East India, investors should remain aware of specific business risks. The company faces customer concentration risk, where a significant portion of its revenue may depend on a small number of clients. Furthermore, the business is sensitive to volatility in raw material prices, particularly copper and aluminium, which are essential for cable manufacturing. Fluctuations in these commodity prices can directly impact profit margins. Unlike some larger, more diversified peers, the company’s regional concentration and project-based EPC revenue model require consistent execution to manage working capital cycles effectively. The next major update for shareholders will be the listing of the shares on the stock exchanges and subsequent quarterly updates on debt reduction progress and order book execution.