Tue Feb 18 07:19:09 UTC 2025: ## Quality Power Electrical Equipments IPO Subscribed 88% on Day 3

**Mumbai, February 17** – The initial public offering (IPO) of Quality Power Electrical Equipments Ltd. continued its strong performance on its third day, reaching an 88% subscription rate by 10:48 IST, according to the Bombay Stock Exchange (BSE). The IPO, which opened on February 14th and is set to close on February 18th, aims to raise ₹859 crore (approximately $105 million USD).

The offering, 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, has already secured over ₹386 crore from anchor investors, including prominent names like LIC Mutual Fund and SBI General Insurance.

While the Qualified Institutional Buyers (QIBs) portion remained at 62% subscription, Retail Individual Investors (RIIs) showed strong interest, exceeding their quota by 1.27 times. Non-Institutional Investors (NIIs) also contributed significantly, subscribing 1.15 times their allotted portion.

The funds raised through the fresh issue will be utilized to acquire Mehru Electrical and Mechanical Engineers and to fund capital expenditure for equipment and machinery. Pantomath Capital Advisors is the lead manager for the IPO.

Analysts note that the company’s growth has been impressive, with Revenue/EBITDA/APAT growing at a CAGR of 28.3%/27.8%/50.6% respectively over FY22-24. However, some express concerns about the post-IPO valuation, considering the current market conditions, assigning a “Subscribe for Long-Term” rating. The company’s high valuation (FY24 PE of 88.5x and EV/EBITDA of 86.7x) compared to listed peers like Transformers & Rectifiers (India) Ltd and Hitachi Energy India Ltd is a factor in this assessment.

Despite a downward trend in the grey market premium (GMP), which currently stands at ₹0, the strong subscription rate suggests continued investor interest in Quality Power, driven by the growing demand for energy transmission technologies. The company’s focus on renewable energy integration within a sector expanding at an 8% CAGR is a key attraction for investors.

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