Laser Power & Infra Ltd. IPO

Laser Power & Infra

• Laser Power & Infra is coming out with a 100% book building; initial public offering (IPO) of 3,65,51,722 shares of face value Rs 5 each in a price band Rs 203-214 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on July 9, 2026 and will close on July 13, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 40.60 times of its face value on the lower side and 42.80 times on the higher side.
• Book running lead managers to the issue are IIFL Capital Services and ICICI Securities. 
• Compliance officer for the issue is Debendra Banthiya.  

Profile of the company 

The company is an integrated manufacturer of power cables, conductors and other specialised products and components to the power transmission and distribution industry in India. With an established operating history spanning over three decades, it has built a strong reputation for delivering high-quality products tailored to the evolving needs of its clients and tailor-made for their projects. In furtherance of its forward integration strategy, in the year 2015, it strategically expanded its business by entering the engineering, procurement, and construction (EPC) segment in power distribution sector, focusing on rural electrification projects, power distribution infrastructure development, and installation of substations, among other turnkey solutions.

Its Manufacturing units adhere to stringent quality control measures and international standards, ensuring the delivery of high-quality products. It strives to deliver customized and innovative products with speed and quality service. Its Manufacturing Units are certified for ISO 9001, ISO 14001 and ISO 45001 standards. Its Manufacturing Units are equipped with modern machinery and testing systems conforming to Bureau of Indian Standards (BIS) and other international benchmarks.

The company has built long-standing relationships with key public sector and private clients. It serves a number of reputed government authorities including Indian Railways, various distribution companies. It also supplies conductors, power cables to some of the private EPC players. Its diverse customer base also includes international clients which include government owned and controlled electricity companies, public enterprises and utilities, in Africa, Bangladesh, Bhutan and Nepal.

Proceed is being used for: 

• Pre-payment or re-payment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

The Indian electrical wires and cables, power conductors, and signal cables industry has witnessed significant growth in recent years, driven by increasing demand from various sectors such as infrastructure, construction, and telecommunications. As the country continues to urbanize and industrialize, the need for reliable and efficient electrical infrastructure has become paramount. This section provides an assessment of the Indian electrical wires and cables, power conductors, and signal cables industry.

In FY25, cables and wire market were valued at around Rs 1,408 billion, up from Rs 787 billion in FY20, registering a CAGR of 12.3%. This notable surge can be primarily attributed to a remarkable growth of High Voltage (HV) & Extra-High Voltage (EHV)- Above 33 KV cables and Elastomeric Cables also known as rubber cables, are a type of electrical cable that uses an elastomer (a flexible, rubber-like material) for insulation and/or sheathing, which have registered exponential growth on the back of increased expansion of transmission lines and electrification initiatives in rural areas. Other cable categories contributing substantially to the accelerated market growth include PVC Control Cables & Instrumentation, building wires, and switchboard cables, driven by pickup in construction activities in both commercial and residential sectors post COVID-19.

The exports of wire and cables grew to around Rs 145 billion in FY25, marking a substantial increase from Rs 49 billion in FY20 and registering a CAGR of 24.4%. This growth can be principally attributed to heightened international demand stemming investments in transmission projects by organizations like International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). Some of the key export partners for wires and cables in FY25 include Saudi Arabia, USA, UAE, UK, Australia, etc. Export destinations for wires and cables among African countries was led by Nigeria, South Africa, Liberia, Tanzania, Kenya etc.

Pros and strengths 

Established track record with marquee customer base: The company has a diverse customer base comprising power utilities and government authorities such as Indian Railways, various DISCOMS including TP Central Odisha Distribution, TP Western Odisha Distribution, TP Northern Odisha Distribution, TP Southern Odisha Distribution, among others and private sector players, international clients which include government owned and controlled electricity companies, public enterprises and electricity boards. It supplies its products to various governmental agencies, based on a pre-qualification process and grant of approval by these governmental agencies. Pre-qualification requirements include past experience in supply to such entities, ability to meet specific technical requirements, financial strength and the price competitiveness of its product offerings.

Strategic partnerships and collaboration with international players: Its key strength is its ability to form strategic alliances with leading global innovators to enhance its technological capabilities and market responsiveness. It has entered into a strategic manufacturing agreement with TS Conductor Corp, a U.S.-based company renowned for its transmission technology, to become qualified to manufacture conductors using composite core technologies. Through this partnership, it has expanded its manufacturing portfolio to include a broad range of advanced conductors such as AECC, HTLS conductors, ECO conductors, AL-59 AAC, and ACSS.

Robust execution capabilities, with a track record of executing and handling complex EPC projects successfully: With its experience of more than a decade in the EPC industry, particularly in the rural electrification for power projects and installation of substations, it has developed an established track record of efficient project management and execution experience, involving trained and skilled manpower, efficient deployment of equipment and an in-house integrated model. Its integrated approach involving manufacturing, logistics, in-house engineering, and on-ground execution has enabled it to deliver complex turnkey assignments across India in a timely and cost-effective manner.

Strong manufacturing capabilities: The company has developed strong in-house manufacturing capabilities supported by strategically located, production facilities that enable it to manufacture a diversified portfolio of products efficiently and at scale. Its manufacturing infrastructure serves as a key differentiator in terms of integration, automation, scale, and geographical advantage. These facilities are located in close proximity to key ports like Kolkata and Haldia, and raw material sources, including key aluminium and copper suppliers, allowing for time and cost-efficient procurement, reduced logistics costs, and faster turnaround times for both domestic and export orders. The proximity to critical inputs such as iron ore, chrome ore, and manganese ore further enhances its operational efficiency.  The company also has an established in-house compounding facility for insulation, sheathing and semi-conductive materials which are used across power cables and conductor. Its integrated operations reduce reliance on third-party suppliers, thereby enhancing supply security for critical inputs and mitigating risks associated with price and supply volatility.

Risks and concerns

Heavy reliance on top 10 customers: The company derives a significant portion of its revenue from its top 10 customers. Its business largely depends on its top 10 customers which contributed 72.14%, 68.87% and 53.37% of its Revenue from Operations in Fiscals 2026, 2025 and 2024. Loss of all or a substantial portion of sales to any of its top 10 customers, in particular for any reason (including, due to loss of contracts or failure to negotiate acceptable terms, loss of market share of these customers in their industries, disputes with these customers, adverse change in the financial condition of these customers, decline in their sales, plant shutdowns, labour strikes or other work stoppages affecting production of these customers), could have an adverse impact on its business, results of operations, financial condition and cash flows.

Power cables and conductors drive majority of revenue: The sale of power cables and conductors manufactured by the company contributes a significant portion of its revenue from operations, accounting for 72.70% in FY26, 72.25% in FY25, and 87.43% in FY24. The cables and conductors market is dependent primarily on governments planned expenditure on building new transmission and distribution networks or upgrading existing transmission and distribution networks. Accordingly, its cables and conductors business may be affected by a reduction in budgetary allocation in transmission and distribution networks or cancellation or interruption of transmission and distribution related projects. Any decrease in revenue or margins from its cables and conductors business, including due to the abovementioned factors, may also have an adverse effect on its business, cash flows, results of operation and financial position.

Fluctuating raw material prices could impact earnings: The company’s operations are dependent upon the prices and availability of the primary raw materials that it requires for the production of its aluminium conductors and power cables. The primary raw materials used by the manufacturing segment of its business are aluminium, steel, copper, XLPE and PVC compound. In the Fiscals 2026, 2025 and 2024, It has experienced fluctuations in the cost of raw materials, including due to changes in prices on various commodity stock exchanges and other market-driven factors. While it monitors such price movements, its purchase orders with customers generally include a price escalation mechanism, which provides for adjustments in pricing based on changes in the cost of key raw materials. If it is unable to pass on cost increases to its customers or are unsuccessful in managing the effects of raw material price fluctuations, which could materially and adversely affect its business, financial condition, results of operations and cash flow.

Dependence on limited suppliers raises raw material supply risk: The company depends on a limited number of suppliers and it usually does not enter into long term supply contracts with any of the raw material suppliers and typically place orders with them in advance of its anticipated requirements. The absence of long-term contracts at fixed prices exposes it to volatility in the prices of raw materials that it requires and it may be unable to pass these costs to its consumers. It also faces a risk that one or more of its existing suppliers may discontinue their supplies to it, and any inability on its part to procure raw materials from alternate suppliers in a timely manner, or on terms acceptable to it, may adversely affect its operations.

Outlook  

Laser Power & Infra is one of the leading players among power cable and conductor manufacturers. The company is a registered supplier to Indian Railways, accredited by the Research Design & Standard Organization (RDSO), and one of the largest approved vendors of PVC insulated armoured unscreened underground power cables, quad cables for signal and telecommunication (S&T) installations, and PVC insulated armoured unscreened underground railway signalling cables, signalling control, quad and power cables, based on the capacities of these products, among the approved vendors in East India. On the concern side, it faces certain competitive pressures from the existing competitors and new entrants in both public and private sector. Increased competition and aggressive bidding by such competitors are expected to make its ability to procure business in future more uncertain which may adversely affect its business, financial condition and results of operations.

The issue has been offering 3,65,51,722 shares in a price band of Rs 203-214 per equity share. The aggregate size of the offer is around Rs 742.00 crore to Rs 782.21 crore based on lower and upper price band respectively. On performance front, total income decreased by 9.44%, from Rs 2592.53 crore for Fiscal 2025 to Rs 2347.89 crore for Fiscal 2026. Its profit for the year increased by 42% from Rs 106.75 crore for Fiscal 2025 compared to Rs 151.59 crore for Fiscal 2026.

Meanwhile, its diverse and evolving product portfolio has been a key driver for its revenue expansion and market differentiation. It continues to prioritize diversification across its offerings to minimise dependence on any single product and to provide a broad range of solutions tailored to the evolving needs of its clients across the power and infrastructure sectors. In line with the strategy of product expansion, it has introduced a range of advanced and specialized conductors, including ACSS conductors, AECC conductors, MVCC conductors, and AL-59 AAAC conductors. These additions not only enable it to cater to niche and high-performance market segments but also support its efforts to enhance product margins and global reach.