Parth Electricals & Engineering Limited, a prominent name in India’s power infrastructure sector, is launching its Initial Public Offering (IPO) on August 4, 2025, with the aim to raise ₹49.72 crore through a Book Built Issue. The IPO comprises a fresh issue of 29.24 lakh equity shares, and will be listed on the NSE SME platform. This IPO marks an important phase in the company's growth trajectory, reflecting both its operational excellence and future expansion plans.

Company Background and History

Established in 2005, Parth Electricals began as a service provider in the power infrastructure segment. It later transitioned into a private limited company in 2007, and further expanded its capabilities by setting up a state-of-the-art manufacturing facility in 2009. By 2010, the company integrated advanced Japanese machinery and a modern powder coating plant, enabling it to deliver turnkey solutions across India’s electrification and commissioning projects.

Parth Electricals has played a pivotal role in numerous high-impact electrification projects across the country. With its strong workforce, modern infrastructure, and dedicated management, the company has continued to make significant contributions to India’s growing energy needs.

IPO Details

• IPO Opening Date: August 4, 2025

• IPO Closing Date: August 6, 2025

• Allotment Date: Expected on or about August 7, 2025

• Tentative Listing Date: On or about August 11, 2025

• Exchange: NSE SME

• Issue Size: ₹49.72 crore

• Fresh Issue: 29.24 lakh shares

• Price Band: ₹160 to ₹170 per equity share

• Lot Size: 800 shares

• Minimum Investment (Retail): ₹2,72,000 (for 2 lots)

• Book Running Lead Manager: Horizon Management Private Limited

• Registrar: KFin Technologies Limited

• Market Maker: Shreni Shares Limited

Anchor Investor Allotment

Parth Electricals successfully raised ₹13.80 crore from Anchor Investors ahead of the IPO. A total of 8,12,000 equity shares were allotted at ₹170 per share, the upper limit of the price band. This pre-subscription reflects institutional confidence in the company's financials and growth potential.

Utilization of IPO Proceeds

The net proceeds from the IPO will be used toward the following objectives:

1. ₹20 crore – For setting up a GIS manufacturing facility in Gujarat.

2. ₹19 crore – For establishing a manufacturing facility in Odisha.

3. ₹15 crore – To repay short-term borrowings, reducing financial leverage.

4. General corporate purposes – Supporting working capital and administrative expansion.

Financial Performance of the Company

Parth Electricals & Engineering has exhibited consistent growth in revenue and profitability over the past three years. Below are key financial figures for FY2023, FY2024, and FY2025:

The pre-issue P/E ratio stands at 16.55x, and post-issue P/E ratio is 22.97x, compared to the industry average P/E of 26x. This suggests that the IPO is reasonably priced given the company's strong earnings momentum and industry outlook.

IPO Grey Market Premium (GMP)

As of July 29, 2025, the Grey Market Premium (GMP) for Parth Electricals IPO is ₹30, indicating a potential listing price of ₹200, which is about 17.56% higher than the upper price band.

Note: GMP is an unregulated indicator and should not be solely relied upon for investment decisions.

IPO Subscription Status and Key Notes

• The IPO subscription window will open on August 4, 2025, and remain active until August 6, 2025.

• Retail investors must apply for a minimum of 1,600 shares (2 lots) due to the lot size requirement.

• Anchor portion is drawn from the Qualified Institutional Buyers (QIBs) reservation.

• Market Maker portion is included under Non-Institutional Investors (NIIs) in the subscription table.

How to Check Parth Electricals IPO Allotment Status

Investors can check the IPO allotment status on the Registrar's Website (KFin Technologies) using the following steps:

1. Visit the IPO allotment page.

2. Select Parth Electricals & Engineering Limited IPO from the dropdown.

3. Enter Application Number, PAN, or DP Client ID.

4. Click Submit to check your allotment status.

Promoters and Management Team

• JIGNESHKUMAR GORDHANBHAI PATEL – With 20 years of experience in the power sector, he has led the company from its inception through its rapid growth.

• JEMINI JIGNESHKUMAR PATEL – Active in the company's operational management, she has worked in accounts, administration, and project management, contributing significantly to the company's manufacturing operations in the past 5 years.

IPO Review and Investment Outlook

Parth Electricals has shown robust growth in both revenue and profitability, along with a strong promoter background and strategic expansion plans. The IPO pricing appears reasonable, and the presence of anchor investors, coupled with a positive GMP, suggests possible listing gains.

Our Recommendation:
Risk-tolerant investors may consider applying for listing gains, while long-term investors should assess operational scalability and margin consistency post-expansion.

Disclaimer

The above information is for educational and informational purposes only. It is not financial advice. Investing in IPOs involves risk. Please consult a SEBI-registered advisor before making investment decisions. Market conditions may change, and past performance is not indicative of future returns.

“Investments in securities market are subject to market risks. Read all related documents carefully before investing.”

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Flysbs Aviation, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics.

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