LT Elevator shares make a stellar debut, list at 75% premium over IPO price on BSE SME platform

Elevator and smart parking solutions provider LT Elevator made a stellar stock market debut on Friday, listing at a premium of 74.5%. The stock opened at Rs 136.10 apiece on the BSE SME platform, against its IPO price of Rs 78.

The company had launched a Rs 39.37 crore book-built IPO between September 12–16, offering 50.48 lakh shares at a price band of Rs 76–78 per share. The IPO was entirely a fresh issue, with no offer-for-sale component.

Ahead of the debut, the grey market premium on the stock hovered around 55%, hinting at robust listing gains following an impressive subscription response.

Strong subscription response

Investor appetite for the issue was visible in the subscription numbers. The IPO was subscribed 182.95 times overall, including 158.9 times in the retail category, 95.1 times by qualified institutional buyers (QIBs), and a staggering 356.16 times among non-institutional investors (NIIs).

Anchor investors had also participated, with the company raising Rs 11.21 crore ahead of the IPO through allocation of 14.36 lakh shares at Rs 78 per share.

Market watchers believe that the relatively modest issue size and niche positioning of the business may have added to speculative enthusiasm in the unofficial market.

About the company

LT Elevator manufactures, installs, and maintains a wide range of elevators, including manual, semi-automatic, and modern modular systems. The company also provides EPC and O&M services, operating under a “customer-first philosophy.

Its facility in Chakchata, West Bengal, is capable of producing around 800 elevators annually. The company has an in-house testing lab and emphasizes innovation, safety, and sustainable practices. Beyond elevators, it has also ventured into smart parking solutions through its subsidiary Park Smart Solutions.

Financials and strengths

The company’s financials have shown robust growth. Revenue rose 40% year-on-year to Rs 56.74 crore in FY25, while profit after tax surged 182% to Rs 8.94 crore. Margins have also strengthened, with PAT margin at 15.8% and EBITDA margin at 26.9%.

Key strengths include a wide product portfolio, modern manufacturing facilities, a skilled workforce, and strong brand recall in regional markets. However, analysts point out that the IPO valuations appear on the higher side given the recent surge in profits, which may raise questions on sustainability.

Objects of the issue

The IPO proceeds are earmarked for working capital needs (Rs 20 crore), investment in subsidiary Park Smart Solutions (Rs 8.8 crore), and general corporate purposes.

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