Quality Power IPO fully subscribed on Day 3; check GMP and other details

The initial public offering (IPO) of Quality Power Electrical Equipments sailed through on the third and final day of bidding. The ₹858.70-crore issue of the energy transition equipment manufacturer was overall subscribed 1.29 times, led by non-institutional investors (NIIs) and retail participants. The public issue, which opened for bidding on February 16, was booked 62% on the first day, followed by 83% on the second day.

As per the latest data available on the BSE, Quality Power IPO was subscribed 1.29x as it received bids for 1,43,31,330 shares against 1,11,12,530 stocks on offer. The issue was subscribed 1.83x the retail category and 1.45x in the NII segment. The portion set aside for qualified institutional buyer (QIB) was booked 1.03 x.

The IPO of Quality Power is a combination of fresh issue of equity shares worth ₹225 crore and offer for sale worth ₹633.70 crore and is being offered at a price band of ₹401-425 per share. The minimum lot size for an application is 26. The Mumbai-based energy transition equipment and power technologies company has reserved 75% of the net issue for the QIBs, 15% for NIIs, and remaining 10% for retail investors.

As per the RHP filed with the SEBI, the capital raised for the issuance of fresh equity shares will be used for the acquisition of Mehru Electrical and Mechanical Engineers, and funding capital expenditure requirements of the company for purchase plant and machinery. A part of the IPO proceed will be utilised for funding inorganic growth through unidentified acquisitions and other strategic initiatives and meet general corporate purposes.

The shares of Quality Power are expected to be listed on the BSE and NSE on February 21, before that allotment of shares will be finalised on February 19, 2025. Ahead of the IPO, the company raised ₹386.41 crore from anchor investors at the upper end of the price band of ₹425 per share.

Meanwhile, shares of Quality Power were trading at flat in the grey market as investors turned cautious amid volatility in the secondary market. The grey market premium (GMP) turned zero from its peak of ₹35 on February 11, 2025, indicating subdued listing of the shares on the stock exchanges.  

On Monday, shares of Ajax Engineering made its debut on the stock markets, while share allotment of Hexaware Technologies were finalised. The shares of Hexaware Technologies will be listed on the domestic bourses tomorrow after the IT services company successfully raised ₹8,750 crore, which is the highest so far in the calendar year 2025. The issue of Hexaware Technologies, for which bidding started between February 12-14, was entirely an offer for sale of 12.36 crore shares at a price band is set at ₹708 per share. 

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