Parth Electricals & Engineering Limited, an emerging name in India’s power infrastructure space, is generating significant investor interest through its ₹49.72 crore SME IPO, which has already been subscribed 3.55 times as of the final subscription day. With a Grey Market Premium (GMP) of ₹30, the stock is expected to debut at a 17.56% premium, signaling bullish sentiment in the unlisted space.

Let’s dive into everything you need to know — from IPO structure and objectives to financials and valuation — to make an informed investment decision.

Company Overview

Established in 2005, Parth Electricals began as a service provider before becoming a private limited company in 2007. Over the years, it has transformed into a full-fledged engineering player with an advanced manufacturing facility set up in 2009. By 2010, they had implemented a modern powder coating plant and imported Japanese machinery, giving them an edge in quality and precision.

Their offerings include:

• Turnkey electrification services

• Installation and commissioning for power sector

• Customized electrical manufacturing and fabrication

They’ve contributed significantly to major national electrification projects and continue to expand their manufacturing capabilities.

IPO Details

• Issue Size: ₹49.72 Crores (entirely Fresh Issue)

• Number of Shares: 29.24 Lakh Equity Shares

• Price Band: ₹160–₹170 per share

• Lot Size: 800 shares

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

• Market Capitalization at upper price band: ₹232.35 Crores

• Listing Platform: NSE SME

• IPO Open: August 04, 2025

• IPO Close: August 06, 2025

• Allotment Date: August 07, 2025 (Thursday)

• Tentative Listing Date: August 11, 2025 (Monday)

• Registrar: KFin Technologies Limited

• Book Running Lead Manager: Horizon Management Pvt Ltd

• Market Maker: Shreni Shares Limited

Use of IPO Proceeds

The net proceeds from the IPO will be used as follows:

1. ₹20 Crores – Establishing GIS manufacturing facility in Gujarat

2. ₹19 Crores – Setting up a manufacturing facility in Odisha

3. ₹15 Crores – Repayment of short-term borrowings

4. Balance – General corporate purposes

These investments are expected to enhance capacity, reduce dependency on debt, and improve long-term profitability.

Anchor Investor Participation

On August 03, 2025, Parth Electricals raised ₹13.80 Crores through the allotment of 8,12,000 shares to anchor investors at ₹170 per share — a strong signal of confidence from institutional investors.

IPO Subscription Status (As of 11:30 AM, Aug 06, 2025)

The retail and HNI segments have led the subscription momentum, indicating healthy demand across the board.

Financial Performance Snapshot

• Revenue has grown 2.6x from FY23 to FY25

• EBITDA margin remains stable, indicating operating efficiency

• PAT has grown 4x, showcasing effective cost control and pricing power

Key Financial Ratios & Valuation Metrics

Despite being at a moderate premium to its pre-issue EPS, the valuation is justified given strong return ratios and growth prospects.

GMP Trend & Expected Listing Price

As per the latest grey market data:

• IPO Price: ₹170

• GMP: ₹30

• Expected Listing Price: ₹200

• Implied Premium: 17.56%

Note: GMP is unofficial, unregulated, and volatile. It should not be the sole basis of investment decisions.

Promoter Background

Jigneshkumar Gordhanbhai Patel, the founder, brings 20 years of experience, having handled operations from the ground up.
Jemini Jigneshkumar Patel, co-promoter, has contributed across business functions and now leads the operations and manufacturing division.

Their hands-on leadership has driven the company from a service provider to a technology-driven engineering player.

Risks to Consider

• High minimum investment requirement (₹2.72 Lakhs), limiting accessibility

• Operating in highly competitive infrastructure sector, subject to public spending and government contracts

• GMP is not a guaranteed indicator of post-listing price movement

  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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