About Parth Electricals & Engineering
Since 2005, Parth Electricals has been a key player in the power sector, providing quality products and services. From a service provider to establishing a modern manufacturing facility with advanced Japanese machinery and powder coating plant, the company has supported major electrification projects across India. Their robust infrastructure and experienced team have enabled consistent achievement of milestones in installation and commissioning.

IPO Details
The company is launching a Book Built Issue of ₹49.72 Crores, entirely through a Fresh Issue of 29.24 Lakh shares. The IPO subscription window is from August 4 to August 6, 2025. The allotment will be finalized on or about August 7, 2025, with shares listing expected on the NSE SME platform by August 11, 2025.

The price band is fixed between ₹160 and ₹170 per share. At the upper price of ₹170, the market capitalization post-IPO will be approximately ₹232.35 Crores. The lot size is 800 shares, with retail investors required to invest a minimum of 2 lots (1,600 shares), amounting to ₹2,72,000.

The book running lead manager is Horizon Management Private Limited, the registrar is KFin Technologies Limited, and Shreni Shares Limited is the Market Maker.

Financial Performance Summary
The company has demonstrated strong financial growth in recent years:

• Revenue from operations (₹ Lakh): 17,620 (FY25), 8,717 (FY24), 6,570 (FY23)

• EBITDA (₹ Lakh): 1,906 (FY25), 943 (FY24), 448 (FY23)

• Profit After Tax (₹ Lakh): 1,012 (FY25), 461 (FY24), 245 (FY23)

Financial ratios for FY24:

• Pre-issue EPS: ₹10.27

• Post-issue EPS: ₹7.40

• Pre-issue P/E ratio: 16.55x

• Post-issue P/E ratio: 22.97x

• Industry P/E ratio: 26x

• ROCE: 23.38%

• ROE: 24.92%

• RoNW: 24.92%

These figures reflect steady growth and a fairly priced IPO relative to the industry.

Promoters and Management Team

• Jigneshkumar Gordhanbhai Patel: Approx 20 years experience including proprietary business since 2005.

• Jemini Jigneshkumar Patel: Extensive operational management experience in manufacturing and factory functions, with roles spanning administration, finance, and project management over the past five years.

Grey Market Premium (GMP) and Listing Gains
The Grey Market Premium for the IPO is ₹30, indicating healthy demand and positive listing gains potential of about 17.56%.

Investment Recommendation
Given the financial performance, experienced management, and promising GMP, the IPO looks attractive for investors willing to take moderate risk.

We recommend risk-aware investors consider applying to the Parth Electricals & Engineering IPO for potential listing gains.

Conclusion

Parth Electricals & Engineering presents a good opportunity to invest in India’s power equipment manufacturing sector with solid fundamentals and experienced promoters. The IPO is fairly priced with strong listing gain prospects, making it suitable for investors with moderate risk appetite.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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