Parth Electricals & Engineering has launched its Initial Public Offering (IPO) on August 04, 2025, aiming to raise ₹49.72 Crores entirely through a Fresh Issue of 29.24 Lakh shares. The company, a significant player in India’s power infrastructure and electrification sector, is now seeking public investment to expand its operations further and strengthen its presence in the market.

Company Background and Journey

Parth Electricals started its journey in 2005 as a service provider in the power sector. Over the years, the company evolved strategically:

• Became a Private Limited Company in 2007

• Set up a state-of-the-art manufacturing facility in 2009

• Installed advanced Japanese machinery and a modern powder coating plant in 2010

This well-timed progression has enabled the company to deliver high-quality products and services for key projects related to installation, commissioning, and electrification throughout India.

IPO Details at a Glance

• IPO Opening Date: August 04, 2025

• IPO Closing Date: August 06, 2025

• Listing Platform: NSE SME

• Tentative Listing Date: August 11, 2025

• Price Band: ₹160 to ₹170 per share

• Lot Size: 800 shares

• Minimum Investment: ₹2,72,000 for 2 lots (1,600 shares)

• Market Capitalisation at ₹170: ₹232.35 Crores

• Book Running Lead Manager: Horizon Management Pvt. Ltd.

• Registrar: KFin Technologies Limited

• Market Maker: Shreni Shares Limited

Financial Performance and Growth

Parth Electricals has shown strong and consistent growth over the last three fiscal years:

This sharp upward trend reflects scalability, sound management, and industry relevance.

Key Ratios and Valuations

• Pre-Issue EPS (FY24): ₹10.27

• Post-Issue EPS (FY24): ₹7.40

• Pre-Issue P/E: 16.55x

• Post-Issue P/E: 22.97x

• Industry Average P/E: 26x

• ROCE (FY24): 23.38%

• ROE & RoNW (FY24): 24.92%

These indicate that the IPO is reasonably priced, especially when compared to the industry average.

Use of IPO Proceeds

Parth Electricals intends to use the raised capital in the following manner:

1. ₹2,000 Lakh to establish a Gas Insulated Switchgear (GIS) manufacturing facility in Gujarat

2. ₹1,900 Lakh for a new manufacturing facility in Odisha

3. ₹1,500 Lakh for repayment of short-term borrowings

4. The rest for general corporate purposes

These planned expansions indicate a focus on long-term business sustainability and debt reduction.

Grey Market Premium (GMP) Insights

As of 29 July 2025, the GMP is ₹30, suggesting an expected listing price of ₹200 (based on an IPO price of ₹170). This implies a listing gain of approximately 17.56%.

However, it must be noted that:

• Grey Market trades are unofficial and unregulated

• GMP can fluctuate based on supply-demand dynamics

• GMP should be considered informational and not a guarantee

Anchor Investment Participation

Parth Electricals raised ₹13.80 Crores from Anchor Investors by allocating 8.12 Lakh shares at ₹170 each. Anchor investments usually reflect institutional confidence in the offering.

Live Subscription Status

On August 04, 2025 (Day 1) at 11:30 AM, the IPO was subscribed 0.14 times. While this is a slow start, SME IPOs often see surges on the final day as HNIs and retail investors finalize their decisions.

Promoter Background

The company is promoted by:

• Jigneshkumar Gordhanbhai Patel: Over 20 years of experience in the power sector

• Jemini Jigneshkumar Patel: Specializes in manufacturing operations and strategic business roles

Both have played a crucial role in shaping the company’s operational success and future vision.

IPO Allotment and How to Check Status

• Allotment Date: August 07, 2025

• Visit the KFintech IPO Allotment Status Page

• Select Parth Electricals & Engineering Ltd from the dropdown

• Enter Application No / PAN / DP Client ID

• Click Submit to view status

This process helps investors know whether they've received shares or not and plan their next steps.

Recommendation and Risk Factors

Considering:

• Strong revenue and profit growth

• Reasonable valuations

• Expanding infrastructure

• Solid promoter background

• ₹30 GMP indicating listing gains

The IPO is suitable for risk-taking investors who aim for listing gains and can tolerate short-term market volatility.

However:

• SME IPOs are less liquid

• Lower subscription on Day 1 may indicate caution

• GMP is not a guaranteed indicator of performance

Hence, investors should consult with financial advisors and evaluate risk appetite before investing.

Final Verdict

Parth Electricals & Engineering Limited’s IPO offers an opportunity to invest in a well-established, high-growth company with clear future plans and robust financials. Despite a modest Day 1 subscription, the positive GMP and anchor interest hint at potential upside on listing.

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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The Current active IPO are Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries, BLT Logistics, Bhadora Industries, Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem.

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