Quality Power IPO Listing: Will It Make a Strong Market Debut?
Quality Power Limited is set to debut on the stock market on February 24, 2025. The IPO opened for subscription on February 14, aiming to raise Rs 858.70 crore. The public issue included a fresh issue of 53 lakh shares worth Rs 225 crore and an offer for sale (OFS) of 1.49 crore shares valued at Rs 633.70 crore.
Key Highlights
- Listing Date: February 24, 2025
- Price Band: Rs 401-425 per share
- Subscription: 1.29 times overall
- GMP: Indicates a weak listing outlook
Grey Market Premium (GMP) Signals Weak Debut
Quality Power IPO saw limited demand during the bidding process. A day before listing, the stock was trading at a discount of Rs 10 per share in the grey market. Analysts suggest this reflects weak investor interest and subdued market sentiment.
The GMP remained flat throughout the IPO bidding phase. Experts believe this indicates a lack of enthusiasm among retail and institutional investors.
IPO Subscription Details
The IPO received a lukewarm response, with an overall subscription of just 1.29 times.
- Retail investors: 1.82 times
- Qualified Institutional Buyers (QIBs): 1.03 times
- Non-Institutional Investors (NIIs): 1.45 times
This modest subscription suggests limited demand from large investors. Analysts predict this could impact the stock’s performance on listing day.
Analysts Recommend Long-Term Hold
Despite a weak listing outlook, market experts suggest holding Quality Power shares for the long term.
“The company has strong growth potential in the energy transition sector. Investors should consider holding their shares rather than selling on listing day,” said Palak Devadiga, Research Analyst at StoxBox.
Several brokerage firms remain optimistic about Quality Power’s future. They highlight its role in high-voltage electrical equipment and solutions for grid connectivity.
Company Background
Founded in 2001, Quality Power Electrical Equipments is based in Sangli, Maharashtra. The company provides electrical solutions across the power generation, transmission, distribution, and automation sectors. It specializes in high-voltage energy transition technology (Source: Company Website).
Quality Power’s IPO listing may face a weak start due to low grey market interest. However, analysts believe in its long-term potential. Investors should consider holding their shares to benefit from future growth in the power technology sector.
Disclaimer
This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research or consult with a financial expert before making investment decisions. Quality Power’s IPO listing may face a weak start due to low grey market interest. However, analysts believe in its long-term potential. Investors should consider holding their shares to benefit from future growth in the power technology sector.
