LAPL Automotive IPO is a book-built issue with a total issue size of ₹32.40 crores. The IPO consists entirely of a fresh issue of 0.34 crore shares aggregating to ₹32.40 crore, with no offer-for-sale component.
The IPO subscription window will remain open from Aug 6, 2026 to Aug 10, 2026. The share allotment is expected to be completed on Aug 11, 2026, while the company’s shares are proposed to be listed on the BSE SME on Aug 13, 2026.
The price band for the issue has been fixed at ₹88 to ₹94 per share. Investors can apply for a minimum lot of 1,200 shares. For retail investors, the minimum investment required is ₹2,25,600 (2,400 shares) (based on upper price). HNI investors must apply for at least 3 lots (3,600 shares), requiring a minimum investment of ₹3,38,400.
GYR Capital Advisors Pvt.Ltd. is acting as the book-running lead manager for the issue, while Maashitla Securities Pvt.Ltd. has been appointed as the registrar.
Company Overview
LAPL Automotive Limited is engaged in the manufacturing of automotive components and precision-engineered products for the automobile industry. The company caters to a diverse customer base, supplying components used in passenger vehicles, commercial vehicles, and other automotive applications.
Its product portfolio is designed to meet the quality and performance requirements of original equipment manufacturers (OEMs) as well as aftermarket customers. The company focuses on precision manufacturing, consistent product quality, and timely delivery to build long-term relationships with its clients.
LAPL Automotive operates manufacturing facilities equipped with modern machinery and production processes to ensure efficient operations and adherence to industry standards. It also emphasizes continuous product development and process improvements to enhance operational efficiency and remain competitive in the evolving automotive sector.
With growing demand for high-quality automotive components, the company aims to strengthen its market presence by expanding its manufacturing capabilities, improving technological expertise, and serving a wider range of customers across India.
Industry Context
- The global automotive industry was valued at USD 2.75 trillion in 2025 and is projected to reach USD 3.26 trillion by 2030, expanding at a 3.46% CAGR, supported by electrification and connected vehicle adoption.
- India’s automobile sector continues to benefit from strong domestic demand and exports, with automobile exports exceeding 5.3 million units in FY25, supported by favourable government policies and expanding manufacturing capabilities.
- The domestic market remains two-wheeler led, with two-wheelers accounting for 77.87% and passenger vehicles 15.60% of market share. Vehicle production reached around 2.8 million units in October 2025.
- India’s electric vehicle ecosystem is expanding rapidly, with 1,00,000 EVs sold in CY24. The sector presents a US$206 billion opportunity by 2030, supported by investments in manufacturing and charging infrastructure.
- Government initiatives, including the PLI Scheme and Automotive Mission Plan 2026, have attracted US$8.1 billion in proposed investments, strengthening India’s position as a global automotive manufacturing and EV hub.
Business Strengths
- The company offers a wide range of automotive components catering to different vehicle segments, helping it serve varied customer requirements.
- It emphasizes precision engineering, stringent quality control, and compliance with industry standards, enabling it to deliver reliable products.
- Long-standing associations with OEMs and aftermarket customers support repeat business and contribute to stable revenue generation.
- Equipped with advanced machinery and efficient production processes, the company is capable of maintaining consistent quality and improving operational efficiency.
- The company’s leadership has industry experience that supports strategic decision-making, operational excellence, and long-term business growth.
Business Risks
- The company’s performance is closely linked to the automotive sector, making it vulnerable to fluctuations in vehicle production and demand.
- A significant share of revenue from a limited number of customers could adversely impact the business if any major customer reduces or discontinues orders.
- Changes in the prices or availability of key raw materials may increase production costs and affect profit margins.
- The automotive components market is highly competitive, requiring continuous investment in quality, technology, and pricing to retain customers.
- Any disruption in manufacturing operations due to equipment failure, labour issues, supply chain disruptions, or regulatory compliance could affect production schedules and financial performance.
Financial Performance
LAPL Automotive Limited- Financials (₹ in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
|---|---|---|---|
| Revenue from Operations | 6,597.53 | 6,073.48 | 6,007.48 |
| Total Income | 6,707.28 | 6,103.39 | 6,036.87 |
| EBITDA | 993.59 | 537.66 | 467.44 |
| Profit After Tax | 503.45 | 217.37 | 198.04 |
| PAT Margin | 7.63% | 3.58% | 3.30% |
| Return on Equity (ROE) | 35.68% | 20.69% | 24.37% |
| Return on Capital Employed (ROCE) | 30.85% | 21.65% | 27.39% |
(Source: RHP)
Key Ratios & Metrics
| KPI | Mar 31, 2026 |
|---|---|
| Return on Equity (ROE) | 41.20% |
| Return on Capital Employed (ROCE) | 34.37% |
| Debt/Equity Ratio | 0.83 |
| Return on Net Worth (RoNW) | 34.16% |
| PAT Margin | 9.25% |
| EBITDA Margin | 16.75% |
| Net Asset Value (NAV per share) | ₹28.70 |
(Source: RHP)
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 6 to 10 Aug, 2026 |
| Allotment | Tue, Aug 11, 2026 |
| Listing Date | Thu, Aug 13, 2026 |
| Face Value | ₹10 per share |
| Price Band | ₹88 to ₹94 per share |
| Lot Size | 1,200 Shares |
| Issue Type | Book Building IPO |
| Sale Type | Fresh capital only |
| Total Issue Size | 34,46,400 shares (agg. up to ₹32 Cr) |
| Fresh Issue (Ex Market Maker) | 32,73,600 shares (agg. up to ₹31 Cr) |
| Shareholding Pre-Issue | 90,89,818 shares |
| Shareholding Post-Issue | 1,25,36,218 shares |
| Listing Exchange | BSE SME |
(Compiled from RHP and market updates)
Objects of the Issue
- Setting up a new manufacturing facility at Plot No-68-1, Sector No.5, Auric City Shendra, Aurangabad, Maharashtra, to expand production capacity.
- Repaying or prepaying a portion of the company’s outstanding secured borrowings to strengthen its financial position.
- Meeting general corporate requirements to support the company’s overall business operations and growth initiatives.
Conclusion
LAPL Automotive Limited operates in the automotive components industry, supplying precision-engineered products that cater to the evolving requirements of vehicle manufacturers and the aftermarket segment. The company’s emphasis on quality manufacturing, established customer relationships, and planned investment in expanding its production capacity through a new manufacturing facility could support its long-term growth prospects.
At the same time, investors should evaluate risks such as the company’s dependence on the automotive sector, fluctuations in raw material prices, competitive market conditions, and operational challenges. Overall, the LAPL Automotive IPO may appeal to investors seeking exposure to the automotive manufacturing sector, provided they carefully assess the company’s fundamentals, growth plans, and associated risks before making an investment decision.
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