Quality Power in red

A new listing today and it was muted one. Quality Power got listed on the BSE at Rs.432, went down to Rs.397 and is now trading in the red at Rs.405.

The IPO did just about ok. The entire issue was subscribed 1.29x with QIBs at 1.03x, HNIs at 1.45x and Retail Investors at 1.83x.

Quality Power Electrical is a Sangli-headquartered manufacturer of high voltage power products, such as reactor and line trap, transformer, instrument transformer, capacitor bank, composite etc. Company has manufacturing facilities in India (Maharashtra and Kerala) and Turkey, with 3/4th of Rs. 300 cr revenue generated from outside India.

In our IPO Analysis, we had concluded - Unjustified acquisition, poor operating margins and irrational pricing make the IPO an ‘avoid’.