Laser Power & Infra lists at 26% premium. What should investors do now?

Laser Power & Infra Ltd made a powerful entry into the stock market, delivering healthy gains for IPO investors as shares debuted at a significant premium over the issue price. The company’s strong order book, debt reduction plans, and growing presence in India’s power infrastructure sector have drawn positive views from market experts.

The stock was listed at Rs 269 per share on the BSE, marking a 25.7% premium over its IPO price of Rs 214. On the NSE, shares opened at Rs 250, reflecting a gain of 16.8% compared with the issue price.

Following the listing, market analysts advised existing investors to stay invested while suggesting that new investors could look at accumulating the stock during market corrections.

Experts suggest holding for long-term growth

According to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, Laser Power & Infra’s market debut highlights strong investor confidence in the company’s growth prospects.

“The company’s fundamentals remain strong, supported by the planned utilisation of around 90% of IPO proceeds towards debt repayment and a robust order book worth Rs 3,243 crore, providing strong revenue visibility,” Nyati said.

She added that investors who received allotment may continue to hold the stock for the medium to long term, while fresh investors can consider buying on dips. A stop-loss level of Rs 225 has been suggested to manage downside risks.

"The company operates three manufacturing facilities in West Bengal with an installed capacity of 85,448 MT. India's wires and cables market is projected to grow from Rs 1,408 billion in FY25 to Rs 2,350–2,550 billion by FY30, driven by infrastructure spending, electrification, smart grids and rising exports. This positions Laser Power & Infra to benefit from favourable sectoral tailwinds," Singh said.

He added that while the strong listing reflects robust investor interest, the stock's long-term performance will depend on the company's execution, business growth and financial performance. "Long-term investors can continue to track the company's progress as investments in India's power infrastructure gather pace," he said.

Strong investor demand drives IPO success

Laser Power & Infra’s Rs 742 crore initial public offering (IPO) received an overwhelming response during its subscription period from July 9 to July 13.

The issue was subscribed 38.94 times overall, reflecting strong demand across investor categories. Institutional investors showed the highest interest, with the Qualified Institutional Buyers (QIB) portion subscribed 92.25 times.

The Non-Institutional Investors (NII) category received 43.34 times subscription, while the Retail Individual Investors (RII) segment was subscribed 6.59 times.

The IPO consisted of a fresh issue of 2.53 crore equity shares worth Rs 542 crore and an offer for sale (OFS) of 0.93 crore shares valued at Rs 200 crore. The issue price was fixed in the range of Rs 203–Rs 214 per share.

Laser Power & Infra operates as an integrated company in India’s power transmission and distribution industry. It manufactures a wide range of products, including power cables, control cables, conductors, and specialised electrical equipment.

The company has also built a strong presence in the Engineering, Procurement and Construction (EPC) segment, where it undertakes turnkey projects across critical power infrastructure areas, including rural electrification, substation development, transmission networks, and power distribution infrastructure.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)