What Quality Power IPO GMP Indicates Ahead Of Its Launch On Feb. 14
Quality Power IPO combines a fresh issue of 53 lakh shares worth Rs 225 crore, with an offer for sale of 1.49 crore shares totalling Rs 633.7 crore.
Quality Power Electrical Equipments Ltd. is slated to launch its initial public offering to raise Rs 858.7 crore from the primary markets on Feb. 14. Ahead of the launch, the mainboard IPO has been garnering significant traction in the unlisted market, with its grey market premium surging more than 8% over the issue price.
According to InvestorGain, Quality Power IPO GMP stood at Rs 35 as of 2:34 p.m. on Feb. 12. If current GMP trends are sustained till the listing date, shares of Quality Power Electrical Equipments Ltd. are projected to make their market debut at Rs 460 on the BSE and the National Stock Exchange. However, the trends might see some change when the IPO opens for subscription.
Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.
Quality Power IPO: Key Details
A book-built issue, Quality Power IPO combines a fresh issue of 53 lakh shares worth Rs 225 crore with an offer for sale of 1.49 crore shares totalling Rs 633.7 crore.
With the price band set at Rs 401 to Rs 425 apiece, the total offer size of Quality Power IPO is Rs 633.7 crore.
Of the total shares on offer, Quality Power Electrical Equipments Ltd. has reserved 75% for qualified institutional buyers and 10% for retail investors. The remaining 15% of the net issue is kept aside for non-institutional investors.
With the minimum lot size fixed at 26 shares, retail investors are required to invest at least Rs 11,050 for their application.
The subscription window for Quality Power IPO will remain open between Feb. 14 and Feb. 18. Share allotment in the offer is expected to be finalised on Feb. 19. Initiation of refunds for the non-allottees and credit of shares into the demat account of successful bidders will be done on Feb. 20.
Shares of Quality Power Electrical Equipments Ltd. are proposed to be listed on the BSE and NSE on Feb. 21.
The company has appointed Pantomath Capital Advisors Pvt. as the sole book-running lead manager for the offer whereas Link Intime India Pvt. is its registrar.
Use Of Proceeds
The company has proposed using Rs 117 crore from the money raised via the fresh issuance to pay the purchase consideration for the Mehru Electrical and Mechanical Engineers Pvt. acquisition. Approximately Rs 26.8 crore will go towards fulfilling the company's capital expenditure requirements, such as purchasing plant and machinery.
The remaining money from the IPO proceeds will be utilised to fund the company's inorganic growth through unidentified acquisitions and other strategic initiatives, as well as for general corporate purposes.
About Quality Power Electrical Equipments Ltd.
Quality Power Electrical Equipments Ltd. is a leading provider of energy transition technologies and power solutions, specialising in high-voltage electrical equipment for grid connectivity. The company manufactures critical high-voltage equipment for High Voltage Direct Current and Flexible AC Transmission Systems networks, facilitating the integration of renewable energy sources into power grids.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
