Quality Power IPO continues to garner robust subscription on Day 2 of the issue in the primary market even as stock markets remain under selling pressure for the straight day running.
The initial public offer of Quality Power Electrical Equipments Ltd got subscribed 83 percent with the issue receiving bids for 92.24 lakh shares against 1.11 crore shares on offer on a price range of Rs 401-425 per share.
The category for non-institutional investors garnered 1.10 times subscription while the quota for Retail Individual Investors (RIIs) got subscribed 1.07 percent. The Qualified Institutional Buyers (QIBs) part attracted 62 percent subscription.
Earlier, the energy transmission equipment and technologies company garnered over Rs 386 crore from anchor investors. The Rs 859-crore Initial Public Offering (IPO) will conclude on February 18.
Meanwhile, shares of the company are commanding a flat grey market premium in the unofficial market, according to Investorgain.
Proceeds from the fresh issue would be utilised for acquisition of Mehru Electrical and Mechanical Engineers, funding capital expenditure requirements for purchasing plant and machinery.
Besides, the company will use the funds for inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
Quality Power shares will be listed on the BSE and NSE on 21st February, while the allotment is likely to take place on 19th February.
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