Tue Feb 18 14:22:44 UTC 2025: ## Quality Power Electrical Equipments IPO Oversubscribed, to List Friday

**MUMBAI, Feb 18, 2025** – Quality Power Electrical Equipments’ initial public offering (IPO) successfully concluded today, exceeding expectations thanks to strong retail investor participation. The IPO, priced between Rs 401 and Rs 425 per share, was 62% subscribed on day one and reached 82% by the end of day two. Final subscription figures show the IPO was oversubscribed by a modest 90%, with retail investors contributing 92% of their allocated portion. However, the Qualified Institutional Buyer (QIB) portion was only 62% subscribed.

The company aims to raise Rs 858.70 crore through the IPO, comprising Rs 225 crore in fresh issuance and Rs 633.70 crore from an offer-for-sale. While the grey market premium (GMP) initially stood at Rs 100, it has since fallen to zero, suggesting a potentially flat listing.

Despite this, brokerage firms maintain a positive long-term outlook, citing the company’s strong financial performance, niche market position, and robust product portfolio in the growing energy transition sector. Indsec Research highlighted impressive revenue, EBITDA, and adjusted PAT CAGRs of 28.3%, 27.8%, and 50.6% respectively over FY22-24. However, concerns remain regarding the high valuation (FY24 PE of 88.5 times and EV/EBITDA of 86.7 times) in the current market climate. Indsec Research gave the IPO a ‘subscribe for long-term’ rating.

Prior to the IPO, Quality Power raised Rs 386 crore from anchor investors. The company reported a net profit of Rs 50.08 crore on revenue of Rs 182.72 crore for the six months ending September 30, 2024, and a net profit of Rs 55.47 crore on revenue of Rs 331.4 crore for FY23-24. Upon listing, Quality Power will have a market capitalization of Rs 3,291.38 crore. The company’s shares are expected to be listed on the BSE and NSE on Friday, February 21st. Pantomath Capital Advisors acted as the lead manager, and Link Intime India served as the registrar.

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