The recent turbulence in the stock market, known as Black Monday, has impacted the performance of newly listed IPOs. Quality Power Electrical Equipments Limited made a lackluster debut, disappointing investors.
The stock, which had an issue price of Rs 425, was listed at Rs 432 on BSE and Rs 430 on NSE, reflecting a modest 2% gain.
However, due to the ongoing market downturn, the stock soon dropped to Rs 405, which is 5% lower than its IPO price. As per the latest valuation, the company’s market capitalization stands at Rs 3,136 crore.
IPO Subscription and Fundraising Details
The IPO was open for investment between February 14 and February 18, during which Quality Power Electrical managed to raise Rs 858.70 crore. This included:
1) Rs 225 crore from issuing 0.53 crore new shares
2) Rs 633.70 crore from selling 1.49 crore shares via an offer for sale (OFS)
The company had set its issue price at Rs 425 per share, with a face value of Rs 10. However, investor interest remained lukewarm, with the IPO being subscribed only 1.29 times in total:
Institutional investors: 1.03 times
Non-institutional investors: 1.45 times
Retail investors: 1.82 times
Stock Market Turbulence and IPO Performance
The 2025 market downturn has affected several IPOs, pushing them below their issue prices. However, some exceptions exist.
For instance, IT company Hexaware Tech, which was listed last week, has delivered strong returns.
The company had set an issue price of Rs 708, but the stock is now trading at Rs 826, giving investors a 17% return despite market instability.
In contrast, Ajax Engineering, another company that recently went public, has struggled. Its stock, listed at Rs 629, is currently trading at Rs 597, resulting in a 5% loss for investors.
With ongoing volatility in the stock market, new IPOs continue to face challenges, making investor sentiment cautious.