Tue Feb 18 13:32:10 UTC 2025: ## Quality Power Electrical Equipments IPO Oversubscribed on Day 3

**Mumbai, February 18, 2024** – The initial public offering (IPO) of Quality Power Electrical Equipments Ltd. (QPEEL) has exceeded expectations, closing its third day of subscription with a significant oversubscription. While final figures fluctuated throughout the day, the IPO ultimately received bids exceeding the shares offered. Retail investors showed strong interest, with their portion significantly oversubscribed. Non-institutional investors also participated robustly. Qualified Institutional Buyers (QIBs) showed less enthusiasm, though still contributing to the overall oversubscription.

The ₹859 crore IPO, priced between ₹401 and ₹425 per share, comprises a fresh issue of ₹225 crore and an offer-for-sale (OFS) of ₹634 crore. The company, specializing in energy transmission equipment and technologies with over 80% of revenue from global markets, aims to utilize funds from the fresh issue for acquisitions (including Mehru Electrical and Mechanical Engineers) and capital expenditure.

Despite valuation concerns, analysts expressed mixed views. While some highlighted QPEEL’s strong revenue and profit growth, its high P/E ratio compared to peers raised questions. The company’s focus on technological advancements in the growing energy transition sector was seen as a positive factor. Several analysts ultimately gave a “subscribe” recommendation for long-term investors, citing the company’s market position and potential growth in the sector.

QPEEL has already secured over ₹386 crore from anchor investors, including prominent mutual funds and financial institutions. Pantomath Capital Advisors acted as the sole book-running lead manager for the IPO. The offering concluded on February 18th.

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