Quality Power IPO Day 2: Check Subscription Status, GMP, And Other Key Details

The Quality Power IPO is creating a buzz in the market as it enters its second day of subscription. The Quality Power Electrical Equipments IPO is generating a lot of interest among market participants, especially with the rising demand for infrastructure and energy-related products.

Quality Power IPO Price Band and Subscription Details

The Quality Power IPO price band is set between Rs,401 and Rs.425 per share. The IPO is a book-built issue valued at Rs.858.70 crore, comprising both a fresh issue and an offer for sale.

The lot size of the IPO for retail investors is set at a minimum of 26 shares. The distribution of shares is, for Qualified Institutional Buyers (QIBs), the minimum lot size is 91 lots (2,366 shares), while for Non-Institutional Investors (NIIs), the minimum lot size is 19 lots (494 shares).

Quality Power IPO GMP Details: What Investors Need to Know

According to the latest updates from Investorgain.com, the Quality Power IPO GMP (Grey Market Premium) stands at Rs.5 as of February 17, 2025, 11:35 AM. This indicates a positive outlook for the IPO, as the GMP suggests a premium above the offering price, showing strong investor interest. With the Quality Power IPO price band set at Rs.425, the estimated listing price for the IPO is projected to be Rs. 430 per share. This calculation takes into account the cap price of Rs. 425 along with today's GMP of Rs. 5.

The expected percentage gain per share at the time of listing is approximately 1.18%, which represents a modest yet positive potential return for investors who decide to subscribe to the IPO.

Quality Power IPO Review:

SBI Securities, in its IPO note, said that "Quality Power is valued at FY24 P/E and EV/EBITDA multiples of 59.3x and 80.8x, respectively, based on the upper price band on the post-issue capital, which looks expensive. The pro forma FY24 P/E and EV/EBITDA multiples (post-acquisition of a 51% stake in Mehru Electrical) are 50.1x/59.0x, respectively, which appears to be expensive looking at the relatively smaller scale of the business. Although the company is doing well on financial metrics (revenue/EBITDA/PAT CAGR of 28.3%/27.8%/14.6%, respectively, over FY22-FY24) and generates healthy return ratios in the range of 34-36%, we believe the listing gains can be muted due to relatively stretched valuations. Hence, we recommend investors only with a long-term investment horizon to subscribe to the issue at the cut-off price."

About Quality Power Electrical Equipments Ltd.

Quality Power Electrical Equipments Ltd. is a prominent manufacturer of electrical equipment, specializing in products that serve a wide range of sectors, including infrastructure, industrial applications, and renewable energy. Established in 2001, the company plays a pivotal role in the energy transition by producing essential high-voltage equipment for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS).