Shares of Quality Power Electrical Equipments Ltd on Monday were listed with a premium of nearly 2 per cent against the issue price of ₹425.
The stock made its market debut at ₹432.05, registering a marginal gain of 1.65 per cent from the issue price on the BSE. Later, it dropped 6.58 per cent to ₹397.
At the NSE, shares of the firm listed at ₹430, a premium of 1.17 per cent. The stock later declined 6.64 per cent to ₹396.75.
The company’s market valuation stood at ₹3,129.13 crore.
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The Initial Public Offering (IPO) of Quality Power got subscribed 1.29 times on the last day of bidding on Tuesday.
The initial share sale had a price range of ₹401-425 per share.
The IPO had a fresh issue of equity shares aggregating up to ₹225 crore and an Offer For Sale (OFS) of 1.5 crore shares valued at ₹634 crore at the upper end of the price band. This took the total issue size to ₹859 crore.
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Proceeds from the fresh issue will be utilised for the 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.