HPL Electric & Power slips on debut

Shares of HPL Electric & Power were trading at Rs 186.90 at 10:30 IST on BSE, a discount of 7.48% compared with initial public offer price of Rs 202.

The stock debuted at Rs 190.05, a discount of 5.92% to the initial public offer (IPO) price. So far the stock hit a high of Rs 198 and low of Rs 185.50. On BSE, so far 14.77 lakh shares were traded on the counter.

The initial public offer (IPO) of HPL Electric and Power ended on 26 September 2016. The IPO received bids for 11.64 crore shares and it was subscribed 8.06 times. The price band for the IPO was fixed at Rs 175 to Rs 202 per share.

Ahead of the IPO, the company raised Rs 108.29 crore by selling 53.61 lakh shares to a total of 13 anchor investors. The shares were allotted to the anchor investors at Rs 202 per share, the top end of the Rs 175 to Rs 202 per share price band for the IPO.

The company manufactures electrical appliances, switch-gears, electronic energy meters and electrical protection equipment. The company had the largest market share with 20% in the market for electricity energy meters in India. The company currently manufactures and sells its products under the umbrella brand 'HPL', which has been registered in India since 1975.

From the IPO proceeds, the company will spend Rs 130 crore towards repayment/ prepayment of certain indebtedness; Rs 180 crore towards funding working capital requirements and remaining for general corporate purpose.

On a consolidated basis, HPL Electric and Power reported net profit of Rs 36.62 crore on net sales of Rs 1116.38 crore in the year ended March 2016.

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