Parth Electricals IPO Opens: Key Details to Know Before Subscribing

Fast Summary:

• IPO Launch: Parth Electricals and Engineering launched its IPO on August 4, aiming to raise ₹49.72 crore through a fresh issue of 29.25 lakh shares.
• Price Details: The IPO is priced between ₹160-₹170 per share, with a Gray Market Premium (GMP) of ₹22, indicating a possible listing price around ₹192.
• Key Dates:

– subscription period: August 4-6.
– Allotment finalization: August 7.
– Listing date on NSE SME platform: August 11.

• Investment Requirement: Retail investors need to apply for at least 1,600 shares requiring an outlay of ₹2.72 lakh.
• Purpose of Funds:

– Setting up new GIS manufacturing units in Gujarat and odisha.
– Repaying short-term borrowings and funding general corporate expenses.

• Business Overview: Based in Vadodara, the company manufactures medium-to-high voltage electrical products like switchgear panels, VCBs, CRPs, compact substations; undertakes turnkey executions for substations up to 220 kV; counts major corporates like Aditya Birla Group, Adani Group, Tata Power as clients.
• Financial Performance (FY25):

– Revenue doubled to ₹176.2 crore.
– Profit After Tax (PAT) rose by ~119% YoY to ₹10.12 crore.

Indian Opinion Analysis:

The Parth Electricals and Engineering IPO highlights the company’s ambitions in expanding its operations into high-demand sectors such as power infrastructure manufacturing through strategic capacity building initiatives in Gujarat and Odisha. Its strong client base featuring well-established industrial players adds credibility while signaling growth potential within India’s expanding energy sector landscape.

However, the steep minimum investment required for retail participation could pose barriers for small investors-a factor that may shape overall subscription trends across investor segments.Financially robust indicators such as doubling revenues underscore prospective long-term viability but should be weighed against market uncertainties during its nascent post-listing phase on NSE’s SME segment.

This IPO reflects broader trends in India’s push toward strengthening energy infrastructure coupled with increasing opportunities within specialized manufacturing segments-areas critical for sustaining industrial growth momentum aligned with national priorities such as “Make in India.”

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