Tue Feb 18 07:42:17 UTC 2025: ## Quality Power Electrical Equipments IPO Subscribed 88% on Day 3

**Mumbai, February 18, 2024** – The initial public offering (IPO) of Quality Power Electrical Equipments Ltd., a company specializing in energy transmission equipment and technologies, has garnered significant investor interest, reaching an 88% subscription rate by the close of trading on its third day, February 17th.

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. While the Qualified Institutional Buyers (QIBs) portion reached 62% subscription, Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs) oversubscribed their quotas by 1.27 times and 1.15 times, respectively.

The company, which caters to power utilities, power industries, and renewable energy entities, had already raised over ₹386 crore from anchor investors, including prominent names like LIC Mutual Fund and SBI General Insurance. Proceeds from the fresh issue will fund the acquisition of Mehru Electrical and Mechanical Engineers and capital expenditure.

Despite strong growth – Revenue, EBITDA, and APAT grew at a CAGR of 28.3%, 27.8%, and 50.6%, respectively, over FY22-24 – analysts at *Mint* express some reservations regarding the post-IPO valuation, citing it as expensive in the current market climate. They assign a “Subscribe for Long-Term” rating to the issue. The IPO’s closing date is February 18th. Pantomath Capital Advisors is the lead manager for the offering. The company’s listed peers, such as Transformers & Rectifiers (India) Ltd., have significantly higher P/E ratios. The grey market premium (GMP) currently stands at ₹0.

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