Laser Power & Infra IPO: A High-Risk Opportunity for Long-Term Growth?

Laser Power & Infra, an Indian manufacturer of power cables and conductors, is set to launch its IPO aiming to raise ₹542 crore through a fresh issue and an additional ₹200 crore through an offer for sale. Following this IPO, the promoter’s stake will decrease from 100% to 75.3%. The company is well-positioned to capitalize on the increasing demand for wires and cables, spurred by significant investments in power infrastructure and network expansion efforts. However, potential investors should consider the company’s elevated debt levels and exposure to raw material price volatility which could impact future performance.

Incorporated in 1988, Laser Power & Infra derives nearly 73% of its revenue from its core business in power and cables, specializing in products for the power transmission and distribution sectors. With three manufacturing facilities in West Bengal and a combined capacity of 85,448 metric tonnes, the company is keen to leverage an expected annual market growth of 11-13% over the coming years. Notably, the company’s order book stood at approximately ₹3,243 crore as of March 2026, but risks associated with customer concentration should be noted, as the top 10 customers contribute over 72% of its revenue.

From a financial perspective, Laser Power & Infra has demonstrated solid growth, with a 15% increase in revenue to ₹2,326 crore in FY26, alongside a significant rise in net profit. However, its net debt-equity ratio has increased, indicating a higher level of financial leverage. As the IPO is valued at a FY26 price-earnings (P/E) multiple of 19.8, slightly below comparable entities, it may present a viable opportunity for long-term investors who can manage the inherent risks. Given the mixed sentiment around its financial health and market position, investors should conduct thorough due diligence before participating in this IPO.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)