Quality Power IPO: GMP, Subscription Status, Review, and Should You Apply?

Posted on February 17, 2025, by Niftynews

The Quality Power IPO of Quality Power Electrical Equipments Limited opened on February 14, 2025, and will remain open until February 18, 2025, at 5:00 PM. The IPO offers shares in a price band of ₹401 to ₹425 per equity share. This book-built public issue aims to raise ₹858.70 crore, with ₹225 crore coming from fresh share issuance, and ₹633.70 crore raised through an Offer for Sale (OFS).

As the IPO progresses, it has seen a lukewarm response, leading market observers to provide mixed reviews on whether to apply for the issue or not. Below, we delve into the current subscription status, Quality Power IPO GMP, and an in-depth review to help you decide.

Quality Power IPO Subscription Status: A Tepid Response

After the first day of bidding, Quality Power IPO subscription status stands at just 0.62 times. Breaking it down further:

• The retail segment has been subscribed 0.57 times.
• The Non-Institutional Investor (NII) portion is booked 0.82 times.
• The Qualified Institutional Buyer (QIB) segment has been subscribed 0.54 times.

While there is still time left for investors to apply, these initial figures show a weak response. Many market participants have attributed the low subscription to the ongoing market sell-off, which has weighed heavily on investor sentiment.

Quality Power IPO GMP: Today’s Market Insights

As of today, Quality Power IPO GMP (Grey Market Premium) is ₹4. This is a significant drop from Friday’s GMP of ₹20, indicating that market sentiment around the IPO is weakening. Analysts believe that the fall in GMP is due to both the weak Quality Power IPO subscription status and the broader market downturn. The Indian stock market has been under stress for the past eight sessions, which has undoubtedly impacted the sentiment in the primary market as well.

Quality Power IPO Review: Should You Apply or Not?

Despite the tepid response, expert analysts are still offering a “subscribe” recommendation for the IPO. Here’s a summary of the opinions from leading brokerage houses:

• Choice Broking has rated the IPO with a “subscribe” tag. They point out that at the upper price band of ₹425, Quality Power Electrical Equipments Limited (QPEEL) is demanding an EV/Sales multiple of 5.9x, which is lower than the peer average. With over two decades of experience in the energy transition sector and a diverse product range, QPEEL is well-positioned to capitalize on the rising demand for energy transition equipment. They believe this will lead to strong, profitable growth in the future.
• Reliance Securities has also given a “subscribe” recommendation. They highlight QPEEL’s strategic position as an Indian manufacturer of high-voltage power products with a strong global presence, serving over 210 global clients, including several Fortune 500 companies. With an experienced team and a solid track record in energy projects, QPEEL is set to benefit from market expansion and strong industry growth, making it a good long-term investment.

Conclusion: Apply or Not for Quality Power IPO?

While Quality Power IPO has seen a lukewarm response and lower GMP today, expert opinions remain positive. If you’re looking for a long-term investment in a growing sector like energy transition, Quality Power presents a compelling opportunity with its vast product range, strong customer base, and leadership in high-voltage power systems.

However, the decision to apply should depend on your risk tolerance and investment horizon. If you are looking for a short-term gain or want to stay cautious in a volatile market, it might be best to wait and see how the subscription picks up in the remaining days.

For long-term investors looking to capitalize on the growing demand for energy-related infrastructure, Quality Power IPO could be worth considering.

Key Points:

• Quality Power IPO subscription is weak with just 0.62x subscription on day one.
• The Quality Power IPO GMP stands at ₹4 today, a sharp decline from ₹20 on Friday.
• Experts recommend a “subscribe” for long-term investors, citing QPEEL’s strong market positioning and growth potential in the energy sector.