Laxyo IPO

Laxyo Limited IPO is a ₹150.00 crore book-built issue comprising entirely of a fresh issue of shares, with no offer for sale (OFS) component.

The equity shares are proposed to be listed on the NSE and BSE.

Indorient Financial Services Limited is the book running lead manager, while MUFG Intime India Private Limited is the registrar to the issue.

Industry Outlook

Railway Infrastructure Market Outlook

• Market Size & Growth: The total addressable market for EPC players in Indian railway infrastructure is projected to expand from ₹1.4 lakh crore in FY25 to ₹2.4 lakh crore by FY31F, growing at a CAGR of 9.4%. Overall capital outlay for Indian railway infrastructure is expected to rise from ₹2.6 lakh crore in FY25 to ₹4.4 lakh crore by FY31F.
• Track Laying EPC: The largest segment, valued at ₹89,700 crore (63.6% market share) in FY25E, is forecast to reach ₹1.43 lakh crore by FY31F, growing at a CAGR of 8.1%.
• Track Maintenance: Valued at ₹21,500 crore (15.2% share) in FY25E, this segment is projected to grow at the fastest CAGR of 12.7%, reaching ₹44,100 crore by FY31F, supported by network expansion and recurring maintenance requirements.
• Civil Construction: The segment is valued at ₹18,600 crore in FY25E and is projected to reach ₹36,900 crore by FY31F, growing at a CAGR of 12.1%.
• Public-Private Partnerships (PPP): Driven by station redevelopment initiatives covering 1,318 stations, the segment is projected to grow at a CAGR of 12.2%, from ₹15,000 crore in FY25E to ₹30,000 crore by FY31F.
• Government Initiatives: Growth is supported by initiatives including PM Gati Shakti, the National Rail Plan, Dedicated Freight Corridors (DFCs), and multi-modal logistics park policies.

Mining Services & Raise Boring Market Outlook

• Market Size & Growth: The Indian raise boring market expanded from ₹51.3 crore in FY20 to ₹135 crore in FY25E, representing a CAGR of approximately 21.4%. It is projected to reach ₹575 crore by FY31F, growing at a CAGR of approximately 27.3%.
• Market Dynamics: The sector is highly concentrated, with fewer than three active specialised firms in India. Laxyo is stated to be the second-largest operator, with a 22% domestic market share, alongside Master Drilling.
• Entry Barriers: High capital requirements create entry barriers, with raise bore rigs costing ₹30-45 crore and having an import lead time of around 10 months.
• Key Growth Drivers: Regulatory shifts favouring non-explosive, mechanised vertical shaft drilling and increasing underground mining activity are expected to support demand.
• Underground Coal Production: Growth is also linked to the Ministry of Coal's target of 100 MT of underground coal production by FY31.

Dredging & Reclamation Services Market Outlook

• Market Size & Growth: The Indian dredging and reclamation market is estimated at ₹4,091 crore in FY25E and is expected to reach ₹6,093 crore by FY31F, growing at a CAGR of approximately 6.9%.
• Capital Dredging: Capital dredging accounts for around 10-12% of port and waterway capital expenditure.
• Maintenance Dredging: Maintenance dredging generates recurring contracts, typically lasting 4-6 months.
• Key Growth Drivers: Demand is supported by port modernisation under the Sagarmala Programme and the operationalisation of 20 new National Waterways (NW) between FY26 and FY31, including NW-5 in Odisha.
• Competitive Landscape: The market comprises around 30 active players, with high capital requirements for fleet acquisition acting as a key entry barrier.

Operations & Maintenance (O&M) in Industrial & Power Plants

• Market Size & Growth: India's outsourced industrial and power plant O&M market is estimated at ₹11,800 crore in FY25E and is projected to reach ₹17,400 crore by FY31F, growing at a CAGR of 6.7%.
• Key Sector Trends: Demand is driven by ageing assets, increasing technical complexity involving boilers, turbines, and Distributed Control Systems (DCS), and a shortage of in-house technical personnel.
• Bundled O&M Contracts: Industrial plant owners are increasingly adopting multi-disciplinary, performance-based bundled O&M contracts covering mechanical, electrical, and control/instrumentation services.
• Market Structure: The market remains fragmented, with more than 300 regional and national players.

Laxyo IPO Objectives

• Prepayment or repayment of outstanding borrowings: ₹70.00 crore towards the full or partial prepayment or repayment of certain outstanding borrowings availed by the company.
• Capital expenditure: ₹9.75 crore towards the purchase of equipment.
• Working capital requirements: ₹23.00 crore to fund the company's working capital requirements.
• General corporate purposes: The remaining amount is proposed to be utilised towards general corporate purposes.

About Laxyo Limited

Laxyo Limited, originally incorporated in 2007 as Laxyo Energy Private Limited, operates as an integrated Engineering, Procurement and Construction (EPC) player and domain-specific contractor in India.

Headquartered in Madhya Pradesh, the company operates across railway infrastructure, mining services and raise boring, dredging and reclamation, and operations and maintenance (O&M) services. In railway infrastructure, it provides end-to-end EPC services covering civil engineering, track laying and linking, earthwork formation, subgrade stabilisation, gauge conversion, track doubling, line expansion, yard remodelling, and Complete Track Renewal (CTR).

Its ancillary work includes minor bridges, culverts, road under/over bridges, platforms, station redevelopment, and integration of overhead electrification (OHE) and signalling and telecommunication systems.

The company also owns specialised Plasser Quick Relaying System (PQRS) machines for mechanised track relaying and renewals and primarily executes projects across the Western and Central Railway zones.

In mining services, Laxyo undertakes surface mining and civil earthwork activities, including excavation, overburden removal, site preparation, mineral handling, and transportation for clients in the cement and thermal power sectors.

Its raise boring operations use specialised Raise Boring Machines (RBMs) for non-explosive vertical and inclined shaft drilling in underground mines, including ventilation shafts, ore passes, and conveyor passages.

The company is stated to be the only domestic company owning raise boring machinery in India and has a reported market share of around 22% as the second-largest operator in the domestic raise boring market. It has also secured an international raise boring contract for Mopani Mines in Zambia through its subsidiary, Laxyo Evapeta Zambia Limited.

In addition to its core business verticals, Laxyo operates an equipment rental business, hiring out dredgers, raise boring machines, and heavy construction equipment to third parties between contracts.

The company has also entered into a 10-year agreement with Western Railway's Ratlam Division to develop and operate a mini-mall, Laxyo Plaza, on Platform 4 of Ratlam Railway Station.

Its contracts are procured through competitive bidding for government and public sector undertakings (PSUs), while private and international projects may be secured through value-based negotiations.

Financial Performance of Laxyo Limited

Laxyo Limited Peer Comparison 

Strengths and Opportunities of Laxyo IPO

• Specialised Railway Machinery: Laxyo owns Plasser Quick Relaying System (PQRS) machinery and is stated to be among around five contractors in India with owned PQRS equipment. The machinery is used for mechanised track relaying and Complete Track Renewal (CTR) activities.
• Presence in Raise Boring Services: Laxyo is stated to be the only domestic company in India owning Raise Boring Machines (RBMs), with a reported 22% share of the domestic raise boring market. Raise boring machines involve high capital requirements, with individual rigs costing around ₹30-45 crore, while imported equipment may have long lead times.
• Diversified Business Operations: The company operates across four primary verticals: railway infrastructure, mining and raise boring, dredging and reclamation, and industrial and power plant Operations and Maintenance (O&M) services. This gives the company exposure to multiple infrastructure and industrial segments.
• Exposure to Railway Infrastructure Spending: Laxyo operates in railway infrastructure, including track laying, track renewal, and related civil works. The total addressable market for railway EPC players in India is projected to increase from ₹1.4 lakh crore in FY25 to ₹2.4 lakh crore by FY31F, representing a projected CAGR of 9.4%.
• Expansion into Overseas Markets: Laxyo has secured its first overseas raise boring contract for Mopani Mines in Zambia through its subsidiary, Laxyo Evapeta Zambia Limited. This marks the company's entry into the international raise boring market.
• Order Book and Government Client Base: As of January 31, 2026, the company had a consolidated order book of ₹632.76 crore, with 81.72% of the order book comprising government orders. The company has also undertaken projects for government and public sector clients across its business verticals.

Risks and Threats of Laxyo IPO

• High Dependence on Government and PSU Contracts: Government and government-owned entities accounted for 81.72% of Laxyo's total order book as of January 31, 2026. Changes in government spending, project approvals, tendering activity, or payment timelines could affect project execution and cash flows.
• High Dependence on Railway Projects: Railway infrastructure projects accounted for 67.89% of the company's order book as of January 31, 2026. A slowdown in railway project awards or changes in spending priorities could affect the company's order inflow and project execution.
• Geographical Concentration in Madhya Pradesh: Madhya Pradesh contributed 44.20% of revenue from operations in H1 FY26 and 47.99% in FY25. A high concentration of operations in one state exposes the company to regional project, regulatory, and operating conditions.
• QIB Allocation Requirement Under SEBI ICDR Regulations: The IPO is being conducted under Regulation 6(2) of the SEBI ICDR Regulations, based on the company's stated eligibility under the applicable framework. Under this route, at least 75% of the net offer is required to be allotted to Qualified Institutional Buyers (QIBs). If the required QIB subscription is not achieved, the issue may not proceed as planned under the applicable regulations.
• Competitive Bidding and Cost Escalation Risk: The company secures EPC contracts through competitive bidding. Changes in the prices of fuel, raw materials, labour, and subcontracting costs during project execution could increase project costs and affect margins where such increases cannot be fully recovered from customers.
• Working Capital and Bank Guarantee Requirements: The company's operations require working capital and bank guarantees for project execution. As of H1 FY26, the company had submitted bank guarantees amounting to ₹44.74 crore. Delays in project execution, invocation of guarantees, or difficulties in obtaining additional banking facilities could affect the company's liquidity and working capital position.

Laxyo IPO Reservation