August 5, 2025

Parth Electricals and Engineering Ltd. has officially launched its Initial Public Offering (IPO) on August 4, 2023, with a targeted fundraising goal of ₹49.72 crore through the issuance of 29.25 lakh shares. Investors can subscribe to this IPO, which is priced within a range of ₹160 to ₹170 per share. Excitingly, the IPO has garnered additional attention due to the current grey market premium (GMP) of ₹22, suggesting a potential listing price around ₹192, which is significantly higher than the upper price band of the IPO. The IPO is set to remain open for subscription until August 6, 2023, with allotments anticipated to be finalized the next day, August 7. Once allotments are confirmed, shares will begin trading on the NSE SME platform on August 11, 2023. The minimum investment for retail investors is pegged at a sizeable ₹2.72 lakh, requiring them to apply for at least 1,600 shares. Horizon Management has taken the lead management role for this IPO, while KFin Technologies serves as the registrar, and Shreni Shares Ltd. operates as the market maker. Based in Vadodara, Parth Electricals and Engineering specializes in manufacturing and supplying medium and high-voltage electrical products. Their extensive product line includes switchgear panels, vacuum circuit breakers (VCBs), compact substations, and they also undertake turnkey projects for air-insulated switchgear (AIS) and gas-insulated switchgear (GIS) substations up to 220 kV. They cater to a variety of high-profile clients, including prominent companies like the Aditya Birla Group, Ultratech Cement, Adani Group, L&T, Reliance Industries Limited (RIL), Tata Power, Bharat Heavy Electricals Limited (BHEL), and Siemens. Financially, Parth Electricals has exhibited notable growth, projecting revenues to double to ₹176.2 crore for FY25. Their profit after tax (PAT) is expected to show a remarkable year-on-year increase of 119% to reach ₹10.12 crore. The proceeds from the IPO are earmarked for establishing new GIS manufacturing facilities in Gujarat and Odisha, repaying short-term debts, and addressing general business needs. Given its robust financial outlook, a distinguished client base, and ambitious growth plans, the IPO has ignited considerable interest among investors. However, market watchers will closely monitor retail participation, especially in light of the substantial minimum investment required to take part. With the prevailing positive trend in the grey market, investor sentiment around the IPO remains optimistic. For the latest updates on stocks, market movements, and expert financial advice, investors are encouraged to keep track of services like ETMarkets, which provide timely alerts and insights into financial strategies. Interested individuals can also subscribe to Telegram feeds for quicker news updates. This IPO presents a thrilling opportunity for investors looking to enter the growing electrical engineering market, particularly as the company plans to enhance its manufacturing capabilities and expand its product offerings. As the IPO date approaches, both retail and institutional investors will be keenly observing how the price movements develop and the overall interest in this market offering.

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Tags: Ipo, Parth electricals, Gmp, Investment, Shares,