IPO News / Quality Power's IPO will open from February 14, know GMP

IPO News: Power transmission equipment and power technology company Quality Power has set a price band of ₹401-425 per share for its ₹859 crore Initial Public Offering (IPO). According to the company, the IPO will open on February 14 and close on February 18, while large (anchor) investors can place bids on February 13.

IPO Details:

• The IPO includes new shares worth up to ₹225 crore and an Offer for Sale (OFS) of 1.5 crore shares (approximately ₹634 crore).

• At the upper price band, the issue size is ₹859 crore.

• In the Offer for Sale, promoter Chitra Pandian will sell her shares.

• The Pandian family holds 100% ownership in Maharashtra-based Quality Power.

• The proceeds from the fresh issue will be used for acquiring Mehru Electrical & Mechanical Engineers Pvt. Ltd. and purchasing plant and machinery.

Lot Size and Reservation:

• The lot size for the IPO is 26 equity shares.

• In the public issue:
  • 75% of shares are reserved for Qualified Institutional Buyers (QIBs).

  • 15% of shares are allocated for Non-Institutional Investors (NIIs).

  • 10% of shares are set aside for Retail Investors.

Share Allotment and Listing:

• The basis of allotment will be determined on February 19.

• Refunds will be initiated on February 20.

• Shares will be credited to Demat accounts on February 20.

• Listing on BSE and NSE is expected on February 21.

Grey Market Premium (GMP) and Expected Gains:

• The current GMP of Quality Power IPO is ₹60.

• At a price band of ₹425, the expected listing price is ₹485.

• The expected percentage gain per share is 14.12%.

Quality Power: Business and Growth Prospects

Quality Power operates in the electrical equipment, energy transition technology, and power solutions sector. The company manufactures high-voltage equipment for High Voltage Direct Current (HVDC) and Flexible AC Transmission System (FACTS) networks, supporting the integration of renewable energy sources into the power grid.

Investment Opportunity

This IPO presents a golden opportunity for investors looking to invest in electrical infrastructure, renewable energy, and power transmission. The company’s strong market presence, technological expertise, and expansion plans make it an attractive investment choice.