August 5, 2025

Parth Electricals and Engineering, a Vadodara-based company, launched its Initial Public Offering (IPO) on August 4, aiming to raise ₹49.72 crore. The IPO consists of a fresh issue of 29.25 lakh shares, priced within a band of ₹160 to ₹170 per share. Recently, the grey market has indicated a premium of ₹22, hinting at a promising listing price of approximately ₹192 per share when it debuts. The IPO is slated to close on August 6, with the allotment expected to be finalized a day later on August 7. Investors can anticipate shares to be listed on the NSE SME platform on August 11. Given the minimum allotment requirement, retail investors need to commit to purchasing at least 1,600 shares, equating to a total investment of ₹2.72 lakh. Horizon Management is serving as the lead manager for this IPO offering, while KFin Technologies has taken the role of the registrar, and Shreni Shares Ltd is functioning as the market maker. Parth Electricals specializes in manufacturing a wide array of medium and high-voltage electrical products, including switchgear panels, Vacuum Circuit Breakers (VCBs), and compact substations, alongside managing turnkey execution projects for both Air Insulated Switchgear (AIS) and Gas Insulated Switchgear (GIS) substations, operating up to 220 kV. The company has built a reputable portfolio of clients featuring some of the largest industrial corporations in India, including the Aditya Birla Group, Ultratech Cement, Adani, L&T, Reliance Industries Limited (RIL), Tata Power, Bharat Heavy Electricals Limited (BHEL), and Siemens. Parth Electricals has reported impressive financial performance, with a projected doubling of revenue to reach ₹176.2 crore for FY25. Additionally, the profit after tax (PAT) has seen a remarkable rise of 119% year on year, amounting to ₹10.12 crore. The funds raised from the IPO will primarily be utilized for bolstering manufacturing capabilities by establishing new GIS manufacturing units in Gujarat and Odisha, repaying short-term borrowings, and addressing general corporate purposes. Given Parth Electricals’ solid client base, strategic expansion ambitions, and the favorable trend in the grey market premium, significant investor interest has been generated. However, the high minimum investment size may deter some retail investors, which will be crucial to monitor as the IPO unfolds. In the constantly evolving financial landscape, it's imperative for potential investors to keep an eye on the latest market trends, stock tips, and expert recommendations, especially with regards to the timing of this IPO. The combination of Parth Electricals’ solid fundamentals and strategic growth plans makes it a noteworthy candidate for investment consideration. As the financial market continues to react to news and trends, keep track of the Sensex and Nifty for movement insights. Following respected financial platforms like ETMarkets can offer timely updates on stock performance and investment strategies tailored for both seasoned investors and newcomers alike. With robust financials and a unique market position, Parth Electricals' IPO presents an interesting opportunity that may appeal to a wide range of investors seeking growth prospects in the electrical engineering sector.

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Tags: Parth electricals, Ipo, Stock market, Investment, Financial growth,