Parth Electricals & Engineering Limited, a long-standing player in India’s power infrastructure sector, is launching its Initial Public Offering (IPO) on August 4, 2025. The issue size is pegged at ₹49.72 crore, consisting of a fresh issue of 29.24 lakh equity shares. The IPO will close on August 6, with the allotment likely on August 7 and the listing scheduled for August 11, 2025, on the NSE SME platform.

Company Overview

Founded in 2005, Parth Electricals has steadily scaled its operations in the Indian power sector. It started as a service provider before incorporating as a private limited company in 2007. By 2009, it had set up a modern manufacturing plant with Japanese technology and added a powder coating facility by 2010. The firm offers a full suite of solutions from installation to commissioning and electrification, executing major projects across India.

The company’s growth has been underpinned by a strong technical team, modern infrastructure, and efficient coordination, leading to successful project delivery.

Promoter & Leadership

The company is promoted by:

• Jigneshkumar Gordhanbhai Patel, who brings nearly 20 years of experience in the electrical contracting and manufacturing domain.

• Jemini Jigneshkumar Patel, who has played a crucial role in manufacturing and operational leadership over the past five years.

Their combined experience ensures deep domain expertise and organizational continuity.

IPO Details

Anchor Investor Participation

Parth Electricals has already garnered significant interest from anchor investors, raising ₹13.80 crores ahead of the IPO. The company allocated 8,12,000 equity shares at ₹170 to these institutional buyers, demonstrating confidence in the valuation and growth potential of the business.

Use of IPO Proceeds

The net proceeds of the IPO will be deployed across four major objectives:

1. ₹20 crore – Setting up a GIS manufacturing unit in Gujarat.

2. ₹19 crore – Establishing a new facility in Odisha to expand geographical reach.

3. ₹15 crore – Repayment of short-term borrowings, thereby strengthening the balance sheet.

4. Remaining funds – Allocated for general corporate purposes, including working capital and operational enhancements.

Financial Performance

Parth Electricals has posted robust financial growth over the past three years, highlighting consistent top-line and bottom-line performance.

This clearly shows more than 2x growth in revenue and profits from FY24 to FY25.

Valuation & Key Ratios

• 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 P/E: ~26x

• ROCE (FY24): 23.38%

• ROE (FY24): 24.92%

• RoNW: 24.92%

These metrics suggest reasonable valuation compared to peers, especially considering strong returns and increasing earnings.

Grey Market Premium (GMP)

As of July 29, 2025, the GMP for Parth Electricals IPO stands at ₹30, indicating a 17.56% premium over the upper band price of ₹170. The expected listing price is around ₹200, though this remains speculative.

Note: GMP is based on unregulated market data and should be treated with caution.

Allotment & Listing Information

• Allotment Date: August 7, 2025

• Listing Date (Tentative): August 11, 2025

• Registrar Portal: KFin Technologies

• How to Check Allotment:

  • Visit the KFintech website

  • Select Parth Electricals & Engineering IPO

  • Enter PAN, application no. or DP ID

  • Submit to view allotment

    Parth Electricals has been delivering quality products and services in the power sector since 2005. Starting as a service provider, they became a private limited company in 2007 and established a state-of-the-art manufacturing facility in 2009, equipped with advanced Japanese machinery and a modern powder coating plant by 2010. With a strong team, robust infrastructure, and seamless coordination, they have consistently achieved key milestones, contributing to major installation, commissioning, and electrification projects across India.
    
    The company is led by Promoters, JIGNESHKUMAR GORDHANBHAI PATEL, who has an experience of approx 20 years (2005-2025) with the business of the Company (including approx. 2 years as the proprietor) and JEMINI JIGNESHKUMAR PATEL, her experience at the Company is in the domain of management of the manufacturing and factory operations. She has worked at all levels of the organization, starting with General Administration, Commercial Offers, Accounts, Project Management, before taking up the operations side of the business since the last 5 years.

    The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 17,620.12 Lakh, ₹ 8,716.50 Lakh and ₹ 6,570.29 Lakh. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 1,906.22 Lakh, ₹ 942.70 Lakh and ₹ 447.66 Lakh. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 1,011.68 Lakh, ₹ 461.02 Lakh and ₹ 244.77 Lakh respectively. This indicates a steady growth in financial performance.
    
    The Company Key Performance Indicates the pre-issue EPS of ₹ 10.27 and post-issue EPS of ₹ 7.40 for FY24. The pre-issue P/E ratio is 16.55x, while the post-issue P/E ratio is 22.97x against the Industry P/E ratio is 26x. The company's ROCE for FY24 is 23.38%, ROE for FY24 is 24.92% and RoNW is 24.92%. These metrics suggest that the IPO is fairly priced.
    
    The Grey Market Premium (GMP) of Parth Electricals & Engineering showing listing gains of 17.56 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Parth Electricals & Engineering Limited IPO for Listing gain.

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    Disclaimer

    The above analysis is for educational and informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Kindly consult your financial advisor before investing.

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    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.

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    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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