Quality Power share price makes tepid debut on Dalal Street, lists at 1.66% premium in Indian stock market

Shares of Quality Power Electrical had a lukewarm debut on Dalal Street on Monday, February 24, following the closure of its initial public offering (IPO). The stock opened at ₹432.05 on the BSE, registering a modest 1.66 per cent premium over its issue price of ₹425 per share.

Meanwhile, on the NSE, it was listed at ₹430, reflecting a 1.18 per cent gain from the issue price.

Also Read: Quality Power Share Price Live Updates: Stock makes a lukewarm debut, opens with a mere 1.2% premium at ₹430 on NSE

“Despite weak market momentum, Quality Power IPO managed to list in line with street estimation. We believe the muted listing is justified in the current market scenario witnessing selling pressure in the broader market. Considering the muted market trend and low interest in the offer demand, we are expecting a very flat trading on its issue price and listing price," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Tapse further added, "Post listing, we continue to believe Quality Power Electrical Equipments Ltd (QPEEL) IPO brings investors a long-term investment opportunity to invest in the rapidly growing energy transition and power infrastructure sector and with strong global presence, specialized expertise in HVDC and FACTS technologies, and a diversified high-voltage equipment portfolio position it as a key player in grid modernization and renewable energy integration. Hence, recommend allotted investors to “HOLD” the Quality Power Electrical Equipments Ltd IPO for long-term perspective, despite knowing that post listing counter may invite short-term volatility.”

Quality Power IPO details

Quality Power IPO, priced at ₹425 per share, comprised a fresh equity issuance of 52.9 lakh shares along with an offer for sale (OFS) of 1.49 crore shares. At the upper price band, the offering sought a market capitalization of ₹3,291 crore.

Quality Power IPO had received a lacklustre response from investors. On the final day of bidding this Tuesday, the IPO was subscribed 1.29 times. The retail individual investors (RIIs) segment saw a subscription of 1.83 times, while non-institutional investors subscribed 1.45 times. Meanwhile, the qualified institutional buyers (QIBs) category recorded a 1.03 times subscription.

The company, which specialises in energy transmission equipment and technologies, has raised over ₹386 crore from anchor investors.

The company plans to allocate the net proceeds towards financing the acquisition of Mehru Electrical and Mechanical Engineers, meeting capital expenditure needs, supporting inorganic growth through future acquisitions and strategic initiatives, and addressing general corporate requirements.

Pantomath Capital Advisors served as the exclusive book-running lead manager for the offering.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.