Shares of Quality Power Electrical Equipments is set to make its Dalal Street debut on Monday, February 24 and the company is likely headed for a soft landing at the stock market, if one goes by the current grey market premium (GMP) for the company, where it has been losing its grounds consistently.
Ahead of its listing, 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 exchanging hands at a discount of Rs 5 per share. The GMP has remained flat throughout the bidding process.
The IPO of Quality Power Electrical Equipments ran for bidding between February 14 and February 18. The company had offered its shares in the price band of Rs 401-425 per share with a lot size of 26 shares. It raised a total of Rs 858.70 crore from its IPO, which included a fresh share sale of Rs 225 crore and an offer-for-sale (OFS) of up to 1,49,10,500 equity shares.
Quality Power has attracted limited investor interest and it is set to debut on the stock markets with a mild premium, said Palak Devadiga, Research Analyst at StoxBox, The energy transition equipment and power technologies market is poised for significant growth in the coming decades, he said.
"Given its strong financial growth, diverse product portfolio and global customer base, the company is well-positioned to achieve sustained growth within the sector. Therefore, we suggest that investors who have received shares consider maintaining their positions with this outlook in mind," Devadiga added.
The issue was overall subscribed a mere 1.29 times. The portion for qualified-institutional bidders (QIBs) was subscribed about 1.03 times. The portion for non-institutional investors (NIIs) was booked 1.45 times, while the allocation for retail investors was booked 1.83 times during the three-day bidding.
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.
Brokerage firms mostly had a positive view on this issue. 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. Shares of the company shall be listed at the bourses on both BSE and NSE.