Laser Power & Infra IPO Draws 38x Subscription, Led by QIBs

Laser Power and Infra's ₹742-crore IPO closed Wednesday with overall subscription of 38.49 times, led by institutional buyers who bid 92 times the shares set aside for them.

The qualified institutional buyer segment was the heaviest bid category. Non-institutional investors subscribed 43.13 times. Retail investors bid 5.79 times.

The company had already raised about ₹223 crore from anchor investors before the IPO opened. The anchor book included 3P India Equity Fund, Nippon India Mutual Fund, HDFC Mutual Fund, Mirae Asset Mutual Fund, and several others. The company allotted 1.04 crore shares at ₹214 apiece, the top of the price band.

The public issue consists of a fresh equity issue of ₹542 crore and an offer-for-sale of ₹200 crore from promoters. Promoter Deepak Goel sold shares worth up to ₹112.5 crore in the OFS. Rakhi Goel sold up to ₹25 crore, and Devesh Goel sold up to ₹62.5 crore.

The price band was set at ₹203 to ₹214 per share. At the upper end, the Kolkata-based company is valued at around ₹3,000 crore.

Proceeds from the fresh issue will go mostly toward repaying borrowings. The company plans to use ₹490 crore to prepay or repay debt. The remainder will fund general corporate purposes.

Laser Power and Infra manufactures power cables and transmission products, a segment tied to India's grid modernization spending.

IIFL Capital Services and ICICI Securities managed the offering.