Quality Power IPO: GMP Trends, Subscription Status, and Review

The Quality Power Electrical Equipments IPO opened on February 14, 2025, and closed on February 18, 2025. The price band was set at ₹401 to ₹425 per share. Quality Power operates in the energy transition technology and electrical solutions domain. This article provides an overview of the IPO, including GMP trends, subscription status, and a review of the company.

Quality Power IPO GMP Trends

The shares of Quality Power Electrical have been trading flat in the unlisted market. There was no Grey Market Premium (GMP) observed, indicating subdued demand and cautious sentiment among investors. The absence of any premium highlights the uncertainty surrounding the stock’s performance post-listing.

GMP serves as an indicator of demand for a company’s shares. A higher GMP reflects strong investor interest in the IPO, while a low or negative GMP suggests subdued demand. However, GMP is merely an indicator and does not guarantee the actual demand or performance of the stock upon listing. It remains highly volatile, influenced by market sentiment, subscription levels, and overall investor interest.

Subscription Status

As of Day 3 of the IPO, the issue was booked 90%. Investors were advised to subscribe to the IPO for the long term.

Quality Power IPO Review

Analysts at Reliance Securities recommended subscribing to the IPO, noting the company’s strategic position as an Indian producer of high-voltage power products and power quality systems with a diversified global customer base. They highlighted the experienced team and skilled workforce, enabling the company to capitalize on growth opportunities, acquire companies at strategic pricing, drive market expansion, and execute projects effectively. This should lead to stronger growth through its product offerings, geographical expansion, and solidifying leadership in the energy transmission sector.

Choice Broking also recommended a ‘subscribe’ rating to the issue. They cited the company’s key competitive strengths, including its position as a global energy transition and power technology player catering to diverse industry segments. The company boasts a diversified customer base comprising global businesses with long-lasting relationships and offers a comprehensive product portfolio in India and internationally, despite high trade barriers. Its demonstrated record of strategic acquisitions, along with an enhanced order book, contributes significantly to its growth. Additionally, its research and development capabilities ensure the delivery of future-ready solutions, and it is strengthened by a management team with extensive domain experience.

IPO Details

• Price Band: ₹401-425 per share
• Lot Size: 26 shares
• Allotment Finalization: February 19, 2025
• Listing Date: February 21, 2025 (NSE and BSE)

About Quality Power Electrical Equipments

Incorporated in 2001, Quality Power Electrical Equipments is an Indian player serving global clients in critical energy transition equipment and power technologies. The company provides high-voltage electrical equipment and solutions for electrical grid connectivity and energy transition. They are a technology-driven company specializing in power products and solutions across power generation, transmission, distribution, and automation sectors. Additionally, the Company offers equipment and solutions tailored for emerging applications such as large-scale renewables.

Quality Power is among the few global manufacturers of critical high-voltage equipment for high-voltage direct current (HVDC) and Flexible AC Transmission Systems (FACTS) networks. These equipment and networks form key components for energy transition from renewable sources to traditional power grids.

Quality Power achieved a 28.3% revenue CAGR (FY22-24) with export revenue contributing up to 80.7% (in FY24) and high capital efficiency with ROE of 29.2% and ROCE of 19.2%, demonstrating strong market performance.