Quality Power shares make muted market debut, stock lists at 2% premium

Shares of Quality Power Electrical Equipments made a muted debut on its Dalal Street debut on Monday as the energy transition equipment maker was listed at Rs 432.05 on BSE, a discount of 1.66 per cent over its issue price of Rs 425 apiece. Similarly, the stock kicked-off its maiden trading session with a discount of 1.16 per cent over its given issue price of Rs 430 on BSE.

The listing of Quality Power has been better-than-the-expectations. Ahead of its stock market debut, the grey market premium (GMP) of Quality Power was exchanging hands at a discount of Rs 10 per share, suggesting a muted listing for the investors. The GMP for the counter has remained negative since the closure of the issue.

The IPO of Quality Power Electrical Equipments ran for bidding between February 14-18. The company had offered its shares in the price band of Rs 401-425 per share with a lot size of 26 shares. It raised a total of Rs 858.70 crore from its IPO, which included a fresh share sale of Rs 225 crore and an offer-for-sale (OFS) of up to 1,49,10,500 shares.

The issue was overall subscribed only 1.29 times. The portion for qualified-institutional bidders (QIBs) was subscribed about 1.03 times. The portion for non-institutional investors (NIIs) was booked 1.45 times, while the allocation for retail investors was booked 1.83 times during the three-day bidding.

Incorporated in 2001, Sangli-based Quality Power Electrical Equipments is engaged in the business of energy transition equipment and power technologies. It provides high-voltage electrical equipment and solutions for grid connectivity and energy transition, specializing in power products across generation, transmission, distribution, and automation sectors.

Brokerage firms mostly had a positive view on this issue. Pantomath Capital Advisors was the sole book-running lead manager of the Quality Power IPO, while Link Intime India served as the registrar for the issue.