Laser Power & Infra IPO Review

Laser Power & Infra IPO price band is Rs 203 to Rs 214. At the top price, the company is valued at around 19.8 times its FY26 profit. Listed cable companies like Polycab, KEI Industries and Apar Industries trade at around 40 times. So this IPO is priced at almost half of the peers. But remember, those companies are much bigger and have strong brands.

The business is growing well. Profit jumped from Rs 40 crore in FY24 to Rs 152 crore in FY26. Operating margin improved from 8.9% to 13%. The order book is Rs 3,243 crore, which is about 1.4 times of FY26 revenue. This gives good revenue visibility for the next 12 to 18 months.

But there are some issues also, and that is why the IPO is priced cheap. Revenue actually fell 9.5% in FY26. Profit grew only because of better margins, not because of more sales. The company takes 196 days to collect money from customers, up from 145 days. Cash flow from operations was negative Rs 119 crore in FY26, even when profit was at its peak. This happens in government-related business, where profit comes on paper first and cash comes late. Top 10 customers give 72% of revenue, so customer concentration is high.

One good point is that Rs 490 crore from the fresh issue will be used to repay debt. Total debt is Rs 828 crore. Less debt means less interest cost and better profit after listing. Most brokers are positive on this IPO because of the low valuation. SBI Securities has given a subscribe rating for the long term.

GMP of this IPO is in the range of 10% to 16% of the issue price. Check the live GMP box on this page for the latest number. GMP is unofficial and changes fast.

Subscription started slow. By day 2, HNI portion was around 3.5 times, retail around 1.4 times and QIB around 1.3 times. The anchor book of Rs 222.6 crore was fully taken by 19 institutions at the top price.

Normally, when subscription is moderate and GMP is in double digits, the listing is mildly positive, not a bumper listing. The most important number to watch is QIB subscription on the last day, 13 July. If big institutions bid strongly, the listing will be better.

For short-term investors, the logic is simple. Valuation is cheap at 19.8 times profit when peers are at 40 times. But the discount is there for real reasons — negative cash flow, slow payment collection and dependence on few customers.

At the current retail subscription of around 1.4 times, allotment chances are good. Roughly 7 out of 10 retail applicants may get allotment. Allotment is on 14 July and listing is on 16 July. After allotment, watch if GMP holds or falls. That is the best short-term signal.

The long-term story depends on power sector spending in India. Grid expansion, rural electrification and railway electrification all need cables and conductors. Laser Power is a strong player in East India, is approved by RDSO for railway cables, and has its highest-ever order book. Debt repayment from IPO money will directly improve profit from the first year.

For the stock to get a higher valuation like its peers, three things must improve. First, cash collection should get faster and cash flow should become positive. Second, the company should reduce dependence on its top 10 customers. Third, margins should stay strong even when aluminium and copper prices go up. If you hold this stock for the long term, watch the working capital numbers in the next two annual reports. That will tell the real story.