Tue Feb 18 07:42:18 UTC 2025: ## Quality Power Electrical Equipments IPO Sees Mixed Response on Day Two

**MUMBAI, February 17, 2025** – The initial public offering (IPO) of Quality Power Electrical Equipments, which began on February 14th, continues to receive a mixed response from investors. While the IPO was 62% subscribed on its first day, subscription rates remained subdued on the second day, reaching only 0.79% of the total shares offered by 2:45 PM on Monday. The three-day bidding process concludes on Tuesday.

The Rs 858.70 crore IPO, comprising a fresh issue of Rs 225 crore and an offer-for-sale of Rs 633.70 crore, offers shares at a price band of Rs 401-425. Investor interest varied across categories: Non-institutional investors (NIIs) subscribed 1.04 times their allocation, while qualified institutional investors (QIBs) showed 62% subscription. Retail investors bid for 92% of their allocated portion.

Despite a sharp correction in the grey market premium (GMP), now at zero, indicating a potentially flat listing, several brokerage firms maintain a positive long-term outlook. They cite the company’s strong financial performance, niche market, and growing demand for its high-voltage electrical equipment and solutions. However, concerns remain regarding aggressive valuations in the current market climate.

Quality Power, established in 2001, is a global manufacturer specializing in HVDC and FACTS technology. The company reported significant revenue, EBITDA, and Adjusted PAT growth (28%, 28%, and 54% respectively) from FY22 to FY24. For FY24, it boasted an ROE of 28% and ROCE of 18%. However, risks associated with export dependency, customer concentration, and competitive pressures are noted. The IPO, priced at a P/E multiple of 88 times (FY24), has already secured Rs 386 crore from anchor investors.

The company’s market capitalization upon listing will be Rs 3,291.38 crore. Allocation is divided as follows: 75% for QIBs, 15% for NIIs, and 10% for retail investors. The final basis of allotment will be announced by Wednesday, with the listing on the BSE and NSE expected on Friday, February 21st. Pantomath Capital Advisors is the lead manager, and Link Intime India is the registrar.

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