Parth Electricals & Engineering Limited is coming up with its Initial Public Offering (IPO) on the NSE SME platform, scheduled to open for subscription from August 4, 2025, and close on August 6, 2025. The issue comprises a fresh issue of 29.24 lakh equity shares, aggregating to ₹49.72 crores. The price band for the IPO is fixed at ₹160 to ₹170 per share, with a lot size of 800 shares, requiring a minimum investment of ₹2,72,000 for retail investors (2 lots).

This is a Book Built Issue, and the listing date is tentatively set for August 11, 2025. The registrar of the issue is KFin Technologies Limited, while Horizon Management Private Limited is the book running lead manager. Shreni Shares Limited is acting as the market maker.

Company Background and Evolution

Parth Electricals has been operating in the Indian power sector since 2005, initially starting as a service provider, later transforming into a private limited company in 2007. By 2009, the company had set up its state-of-the-art manufacturing facility, supported by advanced Japanese machinery, and added a modern powder coating plant by 2010.

Over the years, the company has successfully executed a number of installation, commissioning, and electrification projects across India. It has earned a strong reputation due to its technical capabilities, modern infrastructure, and efficient workforce.

The promoter team includes Jigneshkumar Gordhanbhai Patel, who brings nearly 20 years of industry experience, and Jemini Jigneshkumar Patel, who has played a key role in factory operations and project execution in the last five years.

Financial Performance Overview

Parth Electricals has demonstrated strong financial growth over the past three years:

• FY 2022-23:

  • Revenue: ₹6,570.29 lakh

  • EBITDA: ₹447.66 lakh

  • PAT: ₹244.77 lakh

• FY 2023-24:

  • Revenue: ₹8,716.50 lakh

  • EBITDA: ₹942.70 lakh

  • PAT: ₹461.02 lakh

• FY 2024-25:

  • Revenue: ₹17,620.12 lakh

  • EBITDA: ₹1,906.22 lakh

  • PAT: ₹1,011.68 lakh

The steady rise in revenues and profitability signals the company’s operational efficiency and scalability.

Key financial ratios include:

• Pre-issue EPS: ₹10.27

• Post-issue EPS: ₹7.40

• Pre-issue P/E: 16.55x

• Post-issue P/E: 22.97x

• Industry P/E: 26x

• ROCE (FY24): 23.38%

• ROE and RoNW: 24.92%

These indicators suggest the IPO is reasonably priced compared to the industry benchmark.

IPO Objective

The company plans to utilise the net proceeds from the IPO towards the following:

• ₹20 crore for establishing a GIS manufacturing facility in Gujarat

• ₹19 crore for setting up a new manufacturing facility in Odisha

• ₹15 crore for repayment of short-term borrowings

• Remaining funds for general corporate purposes

These initiatives will further strengthen the company's manufacturing and operational capabilities.

Anchor Investment Details

On August 3, 2025, Parth Electricals raised ₹13.80 crores from Anchor Investors by allocating 8,12,000 shares at the upper price band of ₹170 per share. This strengthens investor confidence and provides early traction.

IPO GMP & Listing Outlook

The Grey Market Premium (GMP) as of July 29, 2025, is reported to be ₹30, indicating a potential listing gain of 17.56%, assuming listing at ₹200. While GMP is unofficial and speculative, it reflects positive investor sentiment.

However, it is important to note that GMP is not regulated and cannot be relied upon for accurate price discovery.

Live Subscription & Allotment

The live subscription window will be available from August 4 to August 6, 2025. Based on anchor interest and GMP, investor demand is expected to be strong.

Allotment date is Thursday, August 7, 2025, and the status can be checked on the KFin Technologies portal by entering either application number, PAN, or DP ID.

Day-wise GMP Trends

Risk Factors

Though Parth Electricals has shown consistent financial growth, the investment may still be considered moderately risky due to:

• Large investment ticket size of ₹2.72 lakh

• Potential industry cyclicality

• Heavy reliance on infrastructure and government projects

Hence, this IPO is best suited for high-risk investors looking for listing gains or short-term profits.

Final Verdict

Parth Electricals & Engineering Ltd has presented a solid growth trajectory, modern manufacturing capabilities, and a well-defined IPO utilisation plan. With an attractive GMP and anchor investor backing, the IPO offers a moderate opportunity for listing gains.

For risk-taking investors, applying in the IPO can be considered a strategic short-term investment. However, conservative investors should watch the subscription levels before making a move.

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.

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

The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

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