Quality Power IPO Subscribed 62% On Day 1: Check GMP, Price Band And More
Quality Power's market value at the upper end of the price band is Rs 3,300 crore, as per NDTV Profit's calculations.
Quality Power Ltd.'s Rs 859-crore initial public offering has been subscribed 0.62 times, or 62%, on the first day of bidding on Friday.
The grey market premium of the Quality Power IPO is Rs 8 as of 04:57 p.m. on Feb. 14, according to InvestorGain. This implies shares of the company will likely list at Rs 433 apiece, indicating a 1.88% premium to the upper end of the price band.
Energy transmission equipment and power technologies company Quality Power Electrical Equipments Ltd.'s initial public offering has the price band set in the range of Rs 401 to Rs 425 per share.
The market value at the upper end of the price band is Rs 3,300 crore, as per NDTV Profit's calculations. Bids can be made for a minimum of 26 shares, and then in multiples thereof.
The offering comprises a fresh issue of equity shares aggregating up to Rs 225 crore and an offer-for-sale of 1.5 crore equity shares valued Rs 634 crore at the upper-end of the price band. This aggregates the issue size to Rs 859 crore.
The company filed its draft papers for the book built public issue in September last year.
Pantomath Capital Advisors Pvt. is the sole book running lead manager and Link Intime India is the registrar to the IPO.
The equity shares are proposed to be listed on both the BSE and National Stock Exchange. The company will use the proceeds from the offer for the acquisition of Mehru Electrical and Mechanical Engineers Pvt., funding capital expenditure requirements for purchasing plant and machinery. The company will use the funds for inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
IPO Details
Issue opens: Feb. 14.
Issue closes: Feb. 18.
Issue price: Rs 401–425.
Offer for sale: Rs 634 crore.
Fresh issue: Rs 225 crore.
Total issue size: Rs 859 crore.
Lot size: Minimum 26 shares, and then in multiples thereof.
Business
Quality Power is engaged in critical energy transition equipment up to 765kv and power technologies and provides high-voltage electrical equipment and solutions for electrical grid connectivity and energy transition.
The company specialises in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors.
Quality Power is among the few global manufacturers of critical high-voltage equipment for High Voltage Direct Current and flexible AC transmission systems networks.
Subscription Status
The IPO has been subscribed 0.62 times as of 05:00 p.m. on Friday.
Qualified institutional buyers: 0.54 times.
Non-institutional investors: 0.82 times.
Retail investors: 0.57 times.
Quality Power IPO GMP
The grey market premium of the Quality Power IPO is Rs 8 as of 04:57 p.m. on Feb. 14, according to InvestorGain. This implies shares of the company will likely list at Rs 433 apiece, indicating a 1.88% premium to the upper end of the price band.
It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.
