Quality Power IPO receives 83% subscription on second day of offer

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The initial public offer of Quality Power Electrical Equipments Ltd received 83 per cent subscription on the day two of bidding on Monday.

The initial share sale got bids for 92,24,514 shares against 1,11,12,530 shares on offer, as per NSE data. 

The quota for non-institutional investors garnered 1.10 times subscription while Retail Individual Investors (RIIs) part got subscribed 1.07 times. The category for Qualified Institutional Buyers (QIBs) received 62 per cent subscription.

The energy transmission equipment and technologies company has garnered over Rs 386 crore from anchor investors.

The Rs 859-crore Initial Public Offering (IPO) will conclude on Tuesday.

The IPO is in a price range of Rs 401-425 per share.

The initial public offer has a fresh issue of equity shares aggregating up to Rs 225 crore and an offer-for-sale (OFS) of 1.5 crore shares valued at Rs 634 crore at the upper end of the price band. This takes the total issue size to Rs 859 crore.

Proceeds from the fresh issue would be utilised for acquisition of Mehru Electrical and Mechanical Engineers, funding capital expenditure requirements for purchasing plant and machinery.

Besides, the company will use the funds for inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

Pantomath Capital Advisors is the sole book running lead manager to the offer.

The company's shares will be listed on the BSE and NSE.