The Quality Power Electrical Equipments IPO has entered its third day of subscription, attracting significant investor interest. The IPO price band is set between ₹401 to ₹425 per share, with the subscription window open from February 14 to February 18, 2025.
Quality Power IPO Subscription Status
As of February 18, 2025, the overall IPO has been subscribed 1.27 times, driven by strong participation from Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs).
| Category | Subscription Status |
|---|---|
| Retail Investors | 1.59x |
| Non-Institutional Investors | 1.31x |
| Qualified Institutional Buyers (QIBs) | 91% |
| Overall | 1.27x |
The company has successfully raised over ₹386 crore from anchor investors ahead of the IPO.
Quality Power IPO Issue Details
- Total IPO Size: ₹859 crore
- Fresh Issue: ₹225 crore
- Offer for Sale (OFS): 1.5 crore shares worth ₹634 crore
- Lead Manager: Pantomath Capital Advisors
The funds raised will be utilized for strategic acquisitions and capital expenditure, including the purchase of Mehru Electrical and Mechanical Engineers.
Grey Market Premium (GMP) & Market Trends
The Grey Market Premium (GMP) for Quality Power IPO has been fluctuating over the past few days. On the third bidding day, the GMP stands at ₹0, indicating that shares are currently trading at their issue price in the grey market. Experts suggest that the GMP could remain volatile depending on market sentiment.
Expert Reviews & Recommendations
Several brokerage firms have shared their views on Quality Power IPO:
- Choice Equity Broking: Assigned a “SUBSCRIBE” rating, citing the company’s strong position in the energy transition sector and reasonable valuation.
- Sushil Finance: Suggests a long-term investment approach, highlighting the company’s potential in India’s growing energy sector.
- GEPL Capital: Recommends avoiding the IPO due to overvaluation concerns.
- Indsec Securities: Assigned a “Subscribe for Long-Term” rating, stating that the company’s strong financials justify investment but current market conditions are weak.
Company Strengths & Market Position
- Leading player in energy transition technology with over 20 years of experience.
- Comprehensive product portfolio in power transmission, distribution, and automation.
- Diversified global customer base, including large-scale industrial clients.
- Three manufacturing facilities in India (Maharashtra & Kerala) and Turkey.
- R&D-driven approach ensuring future-ready energy solutions.
Key Risks & Challenges
Despite its strong market position, investors should consider the following risks:
- Supply chain disruptions affecting raw material availability.
- Capital-intensive nature of the business requiring high working capital.
- Valuation concerns, as the IPO is priced at a higher-than-industry-average P/E ratio.
Conclusion: Should You Invest?
If you are a long-term investor, Quality Power IPO offers a strong business model and growth potential in the energy sector. However, for short-term gains, market volatility and valuation concerns should be considered before making an investment decision.