Quality Power Electrical Equipments IPO is all set for its debut on D-Street, with the listing date confirmed for February 21, 2025. The IPO, which closed for subscription on February 18, 2025, has raised a total of ₹858.70 Crores, including a Fresh Issue of 52.94 lakh shares worth ₹225 Crores and an Offer for Sale (OFS) of 149.10 lakh shares worth ₹633.69 Crores.

Quality Power IPO Listing Date and Key Dates

The listing date for Quality Power Electrical Equipments IPO is confirmed for February 21, 2025, with shares being listed on both the BSE and NSE. The IPO subscription period began on February 14, 2025, and closed on February 18, 2025. The allotment process was finalized on February 20, 2025.

The IPO was priced within the range of ₹401 to ₹425 per share, with a lot size of 26 shares. Retail investors were required to invest a minimum of ₹11,050, while High-Net-Worth Individuals (HNIs) had to invest a minimum of ₹2,09,950 (19 lots, or 494 shares).

Financial Highlights and Grey Market Premium (GMP)

The Market Capitalization of Quality Power Electrical Equipments Limited at the upper price band of ₹425 per share stands at ₹3,291.37 Crores. As of the latest data, the Grey Market Premium (GMP) for the IPO is ₹31, indicating a potential 7.29% listing gain.

While GMP provides an indication of the listing price, it’s essential to note that GMP trading happens in an unorganized manner and should not be considered a reliable method for price discovery.

Key Objectives for IPO Fund Utilization

The funds raised from the Quality Power IPO are expected to be utilized for the following purposes:

1. ₹1,170 million – For acquiring Mehru Electrical and Mechanical Engineers Pvt. Ltd.
2. ₹272.17 million – To meet capital expenditure for purchasing plant and machinery.
3. To fund strategic acquisitions and general corporate purposes.

Company Overview and Business Operations

Quality Power Electrical Equipments is a leading Indian company specializing in critical energy transition equipment and power technologies. They provide high-voltage electrical solutions for grid connectivity and the energy transition sector. Their services span across the power generation, transmission, distribution, and automation sectors.

The company is led by THALAVAIDURAI PANDYAN, with over 39 years of experience, and CHITRA PANDYAN and BHARANIDHARAN PANDYAN, both having 22 years of experience in the business.

The company’s revenues from operations for FY 2024 were ₹3,314.01 million, with a Profit after Tax (PAT) of ₹554.74 million. The firm has demonstrated consistent growth in its financial performance.

IPO Metrics and Valuation

The pre-issue earnings per share (EPS) for Quality Power Electrical Equipments stands at ₹5.19, and the post-issue EPS is ₹4.83 for FY24. With a P/E ratio of 81.89x before the issue, and 87.91x post-issue, the company’s valuation is slightly higher compared to the industry P/E ratio of 22x.

Additionally, the company boasts a Return on Capital Employed (ROCE) of 19.20% and a Return on Equity (ROE) of 19.15% for FY24. These metrics show a stable growth trajectory and a well-positioned firm in the energy sector.

Should You Invest?

With stable financials and a promising growth outlook, Quality Power Electrical Equipments is well-positioned in the energy transition market. However, given the high P/E ratio, potential investors should carefully consider the listing premium and market conditions before making an investment decision.

Although the IPO is priced fairly, investors should note that GMP signals a modest 7.29% gain, suggesting that immediate listing gains may be limited.

In conclusion, while the Quality Power IPO offers potential in the long-term energy sector, investors seeking short-term gains should exercise caution.

The Upcoming IPOs in this week and coming weeks are Swasth Foodtech, Beezaasan Explotech, HP Telecom India.

The Current active IPO are Royalarc Electrodes, Tejas Cargo India, Quality Power Electrical Equipments.

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