Quality Power Electrical Equipments is launching its IPO on February 14, 2025, with the subscription period closing on February 18, 2025. The IPO consists of a fresh issue of shares worth ₹225 crore and an offer for sale of 1,49,10,500 equity shares. The price band is set between ₹401 and ₹425 per share. The company aims to raise approximately ₹858.70 crore through this IPO. Quality Power specializes in providing high-voltage electrical equipment and solutions for grid connectivity and energy transition.
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Expert Opinions
Quality Power IPO is entering the market at a time of growing demand for electrical infrastructure and energy-efficient solutions. The company specializes in high-voltage electrical equipment, serving industries like power transmission and renewable energy. Its strong financial performance, with a Return on Equity (ROE) of 29.15%, Return on Capital Employed (ROCE) of 19.20%, and Return on Net Worth (RoNW) of 29.15% in FY 2024, reflects efficient capital utilization.
However, risks include dependency on a limited client base, exposure to forex fluctuations due to exports, and competition from established players. The company’s expertise in energy transition technologies positions it well in a sector witnessing global investment growth. From a long-term investment perspective, its focus on sustainable energy solutions and consistent profitability makes it an attractive prospect, though investors should assess industry cyclicality and market competition before making a decision.
Investor Considerations
Quality Power IPO presents an opportunity in the electrical equipment sector, supported by strong fundamentals and financial performance. The company has a healthy balance sheet with a Debt/Equity ratio of 0.20, a robust PAT margin of 16.74%, and a Price to Book Value of 16.11 for FY 2024. The sector outlook remains positive, driven by increasing investments in power infrastructure, renewable energy, and industrial automation.
Growth prospects are supported by the company’s expertise in high-voltage electrical solutions and expanding market reach. However, risk factors include reliance on a few key clients, forex fluctuations affecting exports, and competition from established players. From an investment horizon perspective, Quality Power’s profitability and sectoral tailwinds make it appealing for long-term investors, though valuations appear stretched. Investors should carefully assess market conditions, competitive positioning, and demand sustainability before making a decision.
| Date | GMP | Trend |
|---|---|---|
| 23 Feb 2025 13.14 | ₹00 | --- |
| 21 Feb 2025 18.30 | ₹00 | --- |
| 20 Feb 2025 19.19 | ₹00 | --- |
| 19 Feb 2025 10.51 | ₹00 | --- |
| 18 Feb 2025 11.11 | ₹00 | --- |
| 17 Feb 2025 17.56 | ₹00 | Down |
| 15 Feb 2025 11.26 | ₹5 | Down |
| 14 Feb 2025 17.44 | ₹10 | Down |
| 13 Feb 2025 18.14 | ₹15 | Down |
| 11 Feb 2025 10.56 | ₹30 | Up |
| 10 Feb 2025 12.37 | ₹00 | --- |
FAQs
The Grey Market Premium showed reasonable accuracy in predicting Quality Power’s listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock delivered a small gain of 1.18%. With a minimal prediction error of 1.18%, the GMP’s indication of weak market enthusiasm was largely accurate, though it slightly underestimated the marginal positive listing gain.
Quality Power IPO Current GMP is ₹00.
Quality Power IPO Expected Returns is 0.00%.
Quality Power IPO estimated listing price is ₹425.