Quality Power Electrical IPO fully subscribed on Day 3: Check GMP, price band and other details

The initial public offering (IPO) of Quality Power Electrical, which opened for public bidding on February 14, was fully subscribed by 1:08 pm on the final day of bidding on Tuesday. The company aims to raise Rs 858.70 crore through the IPO, and the issue is a mix of a fresh issue worth Rs 225 crore and an offer for sale (OFS) of 1.49 crore shares.

The retail portion of the issue was subscribed 1.45 times, while the issue was subscribed 1.23 times in the non-institutional investors’ category on the final day of bidding. Meanwhile, the qualified institutional buyers had subscribed 74% of the allotted portion.

Quality Power Electrical IPO’s GMP on Day 3

Ahead of listing, the company's shares were trading with a GMP of Rs 0 in the unlisted market on Tuesday, indicating a nil premium over the upper end of the IPO price band of Rs 425. The GMP fell from Rs 5 in the unlisted market on Monday.

Proceeds from IPO

Net proceeds from the IPO will be used to acquire Mehru Electrical and Mechanical Engineers, fund capital expenditure requirements for purchasing plant and machinery, to fund inorganic growth through unidentified acquisitions and other strategic initiatives.

Price band for Quality Power IPO

The company has fixed a price band of Rs 401-425 per share, where investors can bid for 26 shares in one lot and in multiples thereafter.

Allotment and listing date

The share allotment for the IPO will be finalised on February 19 and the listing of the shares is scheduled on February 21, with the shares set to list on both NSE and BSE platforms.

Quality Power IPO review: Should you subscribe?

Analysts advised investors to subscribe to the IPO for the long term as the company is strategically positioned as an Indian producer of high-voltage power products and power quality systems with a diversified global customer base.

“QPEEL has a seasoned team which brings extensive industry experience and skilled workforce, enabling the company to capitalize on growth opportunities, acquire companies at strategic pricing driving growth, market expansion and effective project execution to scale stronger growth through its product offerings, unlocks geographical expansion and solidifying leadership in the energy transmission sector in the coming years. Hence, we recommend a Subscribe," said Reliance Securities.

About Quality Power Electrical IPO details

Incorporated in 2001, Quality Power Electrical Equipments is an Indian player serving global clients in critical energy transition equipment and power technologies. The company provides high voltage electrical equipment and solutions for electrical grid connectivity and energy transition.

They are a technology-driven company specializing in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors.

Additionally, the company offers equipment and solutions tailored for emerging applications such as large-scale renewables.

The company is among the few global manufacturers of critical high-voltage equipment for high-voltage direct current (HVDC) and Flexible AC Transmission Systems (FACTS) networks. These equipment and networks form key components for energy transition from renewable sources to traditional power grids.

Quality Power 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.

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