Quality Power IPO Day 2: Issue booked 72% so far, should you subscribe? Here's what market guru Anil Singhvi suggests

Quality Power IPO: The initial public offering (IPO) of Quality Power Electrical Equipments Limited saw a subscription of 72 per cent as of 11:40 am on the second day of bidding, Monday, February 17. The IPO received bids for 79,72,354 shares against the 1,11,12,530 shares on offer, according to BSE data.  

The quota for Qualified Institutional Buyers (QIBs) recorded a 54 per cent subscription, while the Retail Individual Investors (RII) category was subscribed 81 per cent. The Non-Institutional Investors (NII) segment saw a subscription of 101 per cent.  The Rs 859-crore IPO by the energy transmission equipment and technologies company opened for bidding on February 14 and will close on February 18. Shares are available in the price range of Rs 401 to Rs 425 apiece.  

Quality Power IPO: What does Anil Singhvi suggest? 

Zee Business Managing Editor Anil Singhvi stated that market sentiment is not favourable for new IPOs. He advised that risk-taking investors may apply for the IPO with a long-term perspective or consider buying from the market post-listing.  

Positives: 
- Strong presence in the high-voltage segment 
- Capability to command premium pricing  
- Strong order book 
- Consistent financial performance 
- Cash flow positive with very little debt 
- Adjusted valuations are reasonable and attractive for long-term investments 
- Presence of reputed mutual funds and key investors like Ashish Kacholia in the anchor book

Negatives:  
- Heavy focus on exports, which could be risky in case of a global slowdown  
- Margins remain stable with no improvement  

Quality Power IPO subscription status on Day 1

On Day 1, Sunday, the IPO saw a 62 per cent subscription. The quota for QIBs garnered 54 per cent subscription, while the RII segment was subscribed 57 per cent. The portion for NIIs saw 82 per cent subscription. The company's valuation is estimated at approximately Rs 3,300 crore at the upper end of the price band. 

Quality Power IPO: Allocation, lot size and other details 

Quality Power IPO allotment is expected to be finalised on February 19, with the stock likely to be listed on the BSE and NSE on February 21. Investors must apply for a minimum of 26 shares, requiring an investment of Rs 10,426. To avoid oversubscription issues, bidding at the cutoff price of approximately Rs 11,050 is recommended. For small non-institutional investors (sNII), the minimum investment is 19 lots (494 shares) amounting to Rs 2,09,950, while large non-institutional investors (bNII) need to invest in at least 91 lots (2,366 shares), totaling Rs 10,05,550.  

What does Quality Power Electrical Equipments Limited do?

Established in 2001, Quality Power Electrical Equipments Limited operates in the energy transition and power technology sector. The company is known for manufacturing high-voltage electrical equipment and offering solutions for grid connectivity, catering to power generation, transmission, distribution, and automation needs. It specialises in producing essential components for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS), supporting renewable energy integration into power grids. With over 20 years of expertise, the company supplies reactors, transformers, converters, and grid interconnection solutions globally.