Quality Power IPO Lists at a Premium, Drops Over 5% Post Debut!

Quality Power Electrical Equipments Ltd debuted at ₹430 on NSE and ₹432.05 on BSE, listing at a slight premium over its ₹425 issue price. However, the stock quickly declined, currently trading at ₹406.25 (-5.52%). It recorded a high of ₹430.75 and a low of ₹396.75, with a traded volume of 82.74 lakh shares worth ₹348.59 crore. The IPO was subscribed 1.29 times overall, with retail investors bidding 1.82 times. Funds from the IPO will be used for acquisitions, machinery purchases, and corporate needs. Despite a weak start, analysts remain optimistic about long-term growth.

CONTENTS:

• Quality Power Shares List at a Premium but Decline Post-Opening
• Quality Power Shares List with Modest Gains Amid Weak Market Sentiment
• Quality Power Limited IPO: Muted Market Debut but Strong Long-Term Potential

Quality Power IPO Lists at a Premium, Drops Over 5% Post Debut!

Quality Power Electrical Equipments Ltd debuted at ₹430 on NSE and ₹432.05 on BSE, listing at a slight premium over its ₹425 issue price. However, the stock quickly declined, currently trading at ₹406.25, down 5.52%. Despite a weak debut, analysts remain optimistic about its long-term growth potential in the energy sector.

Quality Power Shares List at a Premium but Decline Post-Opening

Quality Power Electrical Equipments Ltd debuted on the NSE at ₹430 per share, marking a 1.18% premium over its IPO issue price of ₹425, while on the BSE, it opened at ₹432.05, a 1.65% premium. However, the stock saw a decline post-listing, currently trading at ₹406.25, down 5.52% on the NSE, with a market capitalization of ₹3,136.49 crore.

The stock recorded an opening price of ₹430, reaching a day’s high of ₹430.75 and a day’s low of ₹396.75, with a traded volume of 82.74 lakh shares worth ₹348.59 crore. By 10:50 AM, its market cap stood at ₹3,145 crore, with the stock falling 5.48%, and by 10:25 AM, it had declined 5.84% to ₹404.90.

The IPO, priced between ₹401 and ₹425 per share, had a lot size of 26 shares, requiring a minimum investment of ₹11,050. It was subscribed 1.29 times overall, with retail investors bidding 1.82 times their allotted quota. The IPO proceeds are allocated for the acquisition of Mehru Electrical and Mechanical Engineers Pvt Ltd, purchase of new plant and machinery, and general corporate purposes. Quality Power’s shares were officially listed on the NSE and BSE on February 24, 2025.

Quality Power Shares List with Modest Gains Amid Weak Market Sentiment

Quality Power Electrical Equipments made a subdued stock market debut, listing at a 1.66% premium on the BSE at ₹432.05 and a 1.16% premium on the NSE at ₹430, compared to its issue price of ₹425 per share. The company had set its IPO price range between ₹401 and ₹425, with a minimum lot size of 26 shares, successfully raising ₹858.70 crore through its public offering.

However, market sentiment remained weak, as indicated by the grey market premium (GMP), which showed shares trading at a ₹10 discount ahead of listing. The IPO was open for bidding from February 14 to 18, 2025, and received an overall subscription of 1.29 times, with Qualified Institutional Buyers (QIBs) subscribing 1.03 times, Non-Institutional Investors (NIIs) 1.45 times, and Retail Investors 1.83 times.

Founded in 2001 and based in Sangli, Maharashtra, Quality Power specializes in energy transition equipment and power technologies, offering high-voltage electrical equipment and solutions across grid connectivity, power generation, transmission, distribution, and automation sectors. Despite the muted listing, brokerage firms maintained a positive long-term outlook on the stock, citing the company’s strategic role in the growing energy transition sector. Pantomath Capital Advisors served as the sole book-running lead manager, while Link Intime India handled the IPO registrar services.

Quality Power Limited IPO: Muted Market Debut but Strong Long-Term Potential

Quality Power Limited is set to debut on Dalal Street on February 24, 2025, following a lukewarm investor response. Despite this, the IPO was fully subscribed by the end of the bidding period. The company had aimed to raise ₹858.70 crore through its public issue, which included a fresh issue of 53 lakh shares worth ₹225 crore and an Offer for Sale (OFS) of 1.49 crore shares totaling ₹633.70 crore. However, market sentiment remained weak, as reflected in the grey market premium (GMP), which declined significantly ahead of the listing.

The stock was last observed trading at a ₹10 discount per share, indicating a possibility of opening below its issue price. Investor interest was moderate, with an overall subscription of 1.29 times, where retail investors subscribed 1.82 times, Qualified Institutional Buyers (QIBs) 1.03 times, and Non-Institutional Investors (NIIs) 1.45 times. The relatively lower demand from institutional investors could result in a subdued market debut. Despite the weak listing outlook, analysts suggest holding the stock for long-term growth, given its position in the energy transition sector.

Palak Devadiga, Research Analyst at StoxBox, emphasized the company’s potential for sustained expansion in this space. Brokerage firms largely maintain a positive stance on the stock, citing its strategic importance in energy transition technologies. Established in 2001 and headquartered in Sangli, Maharashtra, Quality Power Electrical Equipments specializes in high-voltage electrical equipment and provides power solutions across the generation, transmission, distribution, and automation sectors. Although the stock’s debut might be lackluster, industry experts believe the company has strong long-term growth potential in the evolving energy market.