Quality Power IPO: Issue Opens Today, Check GMP Before Subscribing

The offering comprises a fresh issue of equity shares worth Rs 225 crore and an offer-for-sale (OFS) of 1.5 crore shares coming up to Rs 634 crore at the upper end of the price band.

The price band of the issue has been fixed in the range of Rs 401 to Rs 425 apiece.

Source : ABPLIVE AI

Quality Power opens its maiden offer for the public today. The initial public offering (IPO) of the company will be available for subscription from February 14 to 18, 2025. The price band of the issue has been fixed in the range of Rs 401 to Rs 425 apiece.

The offering comprises a fresh issue of equity shares worth Rs 225 crore and an offer-for-sale (OFS) of 1.5 crore shares coming up to Rs 634 crore at the upper end of the price band. The overall issue size stands at Rs 859 crore.

The Pandyan family controls a 100 per cent stake in the company and promoter Chitra Pandyan will offload the shares as part of the OFS. The proceeds raised from the offer will be utilised to complete the acquisition of Mehru Electrical and Mechanical Engineers. 

Further, funds would be set aside for financing the capital expenditure requirements for purchasing plant and machinery, in addition to utilising the proceeds for inorganic growth via unidentified acquisitions, other strategic initiatives, and general corporate purposes.

Anchor Round

Prior to the issue, the company raised over Rs 386 crore from anchor investors. The anchor round saw robust participation from several entities including LIC Mutual Fund, Maybank Securities, Bengal Finance & Investments, SBI General Insurance, India Inflection Opportunity Fund, Kotak Iconic Fund, and Abans Finance, among others.

Quality Power GMP

As the company's IPO opened for subscription, the issue traded at a premium of Rs 15-20 apiece, clocking a grey market premium of 3.5 per cent against the price band, according to IPOJi. The grey market premium indicates the potential performance of a company once it gets listed in the official stock market. This provides a measure of investors' confidence in the listing and how it will fare on its debut. The grey market runs parallel to the stock market and provides an unofficial platform for traders to place their bets before an issue begins trading on the exchanges.

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