Quality Power Electrical Equipments Ltd saw its shares making a market debut on Monday with a premium of nearly 2 per cent against the issue price of ₹425. The stock opened at ₹432.05 on the BSE, marking a slight gain of 1.65 per cent from the issue price, before dropping 6.58 per cent to ₹397. Over at the NSE, the shares debuted at ₹430, a premium of 1.17 per cent, before falling 6.64 per cent to ₹396.75. The company’s market capitalization was reported at ₹3,129.13 crore.
The IPO of Quality Power had a subscription of 1.29 times on the final day of bidding. Priced in the range of ₹401-425 per share, the IPO had a combination of a fresh issue of equity shares amounting to ₹225 crore and an Offer For Sale (OFS) of 1.5 crore shares valued at ₹634 crore at the upper end of the price band. This brought the total issue size to ₹859 crore.
The proceeds from the fresh issue will be utilized for the acquisition of Mehru Electrical and Mechanical Engineers, financing capital expenditure requirements for purchasing plant and machinery, inorganic growth through unidentified acquisitions and other strategic initiatives, as well as general corporate purposes. The IPO was expected to list on LIC MF among key investors.
Published on February 24, 2025.
