Parth Electricals IPO

Established in May 2007, Parth Electricals and Engineering Limited began as a service-oriented firm and has since evolved into a manufacturing company specializing in electrical equipment. Its product portfolio includes Medium Voltage (MV) switchgear panels, Vacuum Circuit Breaker (VCB) panels, Earth Link Boxes, Control and Relay Panels (CRP), and Compact Substations (CSS). The company also provides end-to-end services such as installation, testing, commissioning, and turnkey execution for Air Insulated Substations (AIS) and Gas Insulated Substations (GIS) up to 220kV, along with High Voltage (HV) and Extra High Voltage (EHV) cable laying projects.

With a manufacturing facility in Manjusar, Vadodara, Parth Electricals serves industries such as power distribution, infrastructure, and industrial manufacturing. Its clientele includes major corporations like Aditya Birla, Ultratech Cement, L\&T, RIL, Adani, Tata Power, Schneider Electric, BHEL, Tata Steel, Siemens, GFL, and Jindal Steel & Power. The company holds ISO 9001:2015, 14001, and 45001 certifications, demonstrating its commitment to quality, environmental responsibility, and occupational safety. Parth Electricals has also expanded its footprint internationally, exporting products and services to global markets.

Parth Electricals IPO Strengths

• The company designs and manufactures a range of medium voltage (MV) switchgear panels, MV busducts, relay control panels, compact substations, and retrofit electrical solutions.
• Equipped with a state-of-the-art manufacturing plant in Vadodara, Gujarat, including sophisticated machinery and a powder coating plant to ensure quality production.
• Parth also provides electrical field services such as installation, testing and commissioning of low, medium, and high voltage switchgears, maintenance, thermography, insulation enhancement, and refurbishment.
• The company has demonstrated revenue growth and expects continued growth with a diversified order book and ongoing projects in power sector infrastructure.
• Parth emphasizes reliable, cost-effective solutions with continuous workforce training to provide high-quality products and services.

Parth Electricals IPO Risks

• More than 50 percent of the company’s sales revenue comes from a single product, the Ring Main Unit (RMU). Heavy depends on this product exposes the company to risks if demand declines or if it faces supply or technological issues.
• A major portion of Parth Electricals’ operations and revenue comes from certain geographic regions. Any adverse development in these areas, such as economic downturns or regulatory changes, could negatively impact business performance.
• Parth Electricals depends on a few key suppliers for raw materials and does not have long-term contracts, which poses risks related to supply disruption or price volatility impacting production costs and margins.
• The electrical equipment sector is highly fragmented and competitive, including both organized and unorganized players, which may pressure pricing and margins.
• Plans for setting up new manufacturing facilities and skill development centers involve execution risks such as delays, cost overruns, and operational inefficiencies that may affect growth.
• The business success depends on retaining experienced promoters, directors, and skilled employees. Loss of key personnel or inability to attract talent could harm operations and performance.