The initial public offering (IPO) of Quality Power Electrical Equipments continued to attract a mixed response from the investors during the second day of the bidding process from all the categories of the bidders. The issue, which kicked off on Friday, February 14, was overall subscribed 62 per cent on day one. Quality Power Electrical Equipments is selling its shares in the price band of Rs 401-425 apiece. Investors can apply for a minimum of 26 shares and its multiples thereafter. It is looking to raise Rs 858.70 crore via IPO, which includes fresh shares of Rs 225 crore and offer-for-sale of up to 1,49,10,500 equity shares worth Rs 633.70 crore. According to the data, the investors made bids for 87,32,932 equity shares, or 0.79 per cent, compared to the 1,11,12,530 equity shares offered for the subscription by 2.45 pm on Monday, February 17, 2025. The three-day bidding for the issue shall conclude on Tuesday, February 18. The allocation for non-institutional investors (NIIs) was subscribed 1.04 times, while the portion reserved for qualified institutional investors (QIBs) saw a subscription of 62 per cent. Portions allocated towards retail investors saw bids for 92 per cent of their allocation as of the same time. Incorporated in 2001, Sangli-based Quality Power Electrical Equipments is engaged in the business of energy transition equipment and power technologies. It provides high-voltage electrical equipment and solutions for grid connectivity and energy transition, specializing in power products across generation, transmission, distribution, and automation sectors. The grey market premium (GMP) of Quality Power has seen a sharp correction on the back of dull bidding for the issue and dented market sentiments. Last heard, the company was commanding a no grey market premium (GMP), suggesting a flat listing for investor investors. The GMP stood around Rs 100 before the issue kicked off. Brokerage firms are mostly positive on the issue but for a long-term perspective citing its decent financial performance, niche market, solid product portfolio and rising demand for its products. However, aggressive valuations amid the current market sentiments may dent its performance. Quality Power Electrical Equipment is a global manufacturer of high-voltage electrical equipment, specializing in HVDC and FACTS technology, with a strong presence in power products and power quality systems. Its revenue, Ebitda and Adjusted PAT have grown by 28 per cent, 28 per cent and 54 per cent from FY22 to FY24, said KR Choksey Finserv. "For FY24, ROE stood at 28 per cent and ROCE at 18 per cent. The IPO is being issued at a P/E multiple of 88 times (FY24), while margins and growth have accelerated in H1FY25 as the issue is fully priced. It is well-positioned in the energy transition sector, its export dependency, customer concentration, and competitive pressures pose significant risks," it added with a 'neutral' tag. Ahead of its IPO, Quality Power Electrical Equipments has raised Rs 386 crore from 21 anchor investors. Quality Power reported a net profit of Rs 50.08 crore with a revenue of Rs 182.72 crore for the six months ended on September 30, 2024.It clocked a bottomline of Rs 55.47 crore with a revenue of Rs 331.4 crore for the financial year 2023-24. Quality Power shall command a market capitalization of Rs 3,291.38 crore. Quality Power has reserved 75 per cent of the net issue for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) shall be offered 15 per cent of the allocation. Remaining 10 per cent of the shares shall be allocated towards the retail investors of the issue. Quality Power offers high voltage equipment and solutions for electric grid connectivity and energy transition. The company is among the few global manufacturers of critical high voltage equipments, said Dalal & Broacha. On a fully diluted basis, the IPO is priced at 33 times post-IPO valuations. IPO is 74 per cent OFS & 26 per cent fresh issue, it said. Recent trajectory of financial performance gives confidence and the fact that in terms of PAT the company has almost managed to do 50 crore PAT in 6MFY25 which is almost the same PAT they did in full FY24. The Global HVDC & FACTS is expected to grow at 75-80% CAGR considering renewables, green energy, electrification & grid integration, it added with a 'subscribe for long-term' tag. Pantomath Capital Advisors is the sole book-running lead manager of the Quality Power IPO, while Link Intime India is the registrar for the issue. The company will finalize the basis of allotment by Wednesday and the status shall be out latest by Thursday. Shares of the company shall be listed at the bourses on both BSE and NSE with February 21, Friday.