Tue Feb 18 20:12:26 UTC 2025: ## Quality Power Electrical Equipments IPO Over-Subscribed on Day 3

**Mumbai, February 18, 2024** – The initial public offering (IPO) of Quality Power Electrical Equipments Ltd. (QPEEL) concluded today, exceeding its subscription target despite a volatile market. By the close of trading, the ₹859 crore IPO had received bids for 1.28 times the shares on offer, according to the Bombay Stock Exchange (BSE).

Retail Individual Investors (RIIs) showed the strongest interest, with their portion oversubscribed by 1.76 times. Non-Institutional Investors (NIIs) also participated significantly, exceeding their quota by 1.45 times. Qualified Institutional Buyers (QIBs) subscribed at 1.03 times their allocation.

The IPO, priced between ₹401 and ₹425 per share, comprised a fresh issue of ₹225 crore and an offer-for-sale (OFS) of ₹634 crore. The company, specializing in energy transmission equipment and technologies, had already secured over ₹386 crore from anchor investors. Proceeds from the fresh issue will fund the acquisition of Mehru Electrical and Mechanical Engineers and capital expenditures.

While the IPO’s valuation drew some concern—a P/E ratio of 81x based on FY24 earnings, significantly lower than listed peers but still considered high by some analysts—the company’s strong revenue growth (₹182.72 crore total income and ₹50.08 crore net profit in H1 FY25), global market dominance (80.7% of revenue from international markets), and focus on technological advancements supported a positive outlook for long-term investors. Several analysts issued “subscribe” recommendations despite the valuation concerns.

Pantomath Capital Advisors served as the lead manager for the offering. The grey market premium (GMP) for the shares remained at zero on the final day of subscription.

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