Quality Power IPO subscribed 78% so far on day 2; Check GMP, price band and other details

The initial public offering (IPO) of Quality Power Electrical Equipments has been subscribed 78% so far on the second day of the bidding process. The issue had opened for subscription on February 14 and will conclude on February 18.

The category for non-institutional investors received 1.02 times subscription while the quota for Retail Individual Investors (RIIs) got subscribed 89%. The Qualified Institutional Buyers (QIBs) portion attracted 62% subscription.

Price band for the issue has been fixed between ₹401 – ₹425 per share. Investors can bid for one lot of 26 shares and in multiples thereafter.

The grey market premium for the IPO remained flat on the second day of subscription.However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
Ahead of the issue opening, the company has raised ₹386.41 crore from 21 institutional investors via anchor book on February 13.Marquee institutional investors including LIC Mutual Fund, Bank of India MF, Maybank Securities, Ashish Kacholia-owned Bengal Finance & Investments, India Inflection Opportunity Fund, Kotak Iconic Fund, Mint Focussed Growth Fund, Bharat Value Fund, SBI General Insurance Company, Steptrade Revolution Fund, Benani Capital Scheme, Universal Sompo General Insurance Company, and IMAP India Capital Investment Trust invested in the company via anchor book.

The company will spend fresh issue funds for the acquisition of Mehru Electrical and Mechanical Engineers, and purchase of plant and machinery. Further, the IPO money will also be utilised for inorganic growth through unidentified acquisitions, and general corporate purposes.

Incorporated in 2001, Quality Power Electrical Equipments is engaged in the business of energy transition equipment and power technologies. The company provides high-voltage electrical equipment and solutions for grid connectivity and energy transition, specialising in power products across generation, transmission, distribution, and automation sectors.

The company achieved a 28.3% revenue CAGR (FY22-24) with export revenue contributing up to 80.7% (in FY24) and high capital efficiency with ROE of 29.2% and ROCE of 19.2% demonstrating strong market performance.

Pantomath Capital Advisors is the book-running lead manager of the Quality Power IPO, while Link Intime India is the registrar.

The allotment for the Quality Power IPO is expected to be finalised on February 19, 2025. Quality Power IPO will be list on BSE, NSE with a tentative listing date fixed as February 21, 2025.