Quality Power stock tanks 8% after muted listing. Should you buy, sell or hold?

Quality Power Electrical Equipments’ share price had a lackluster debut on Dalal Street today, February 24, listing at a 1.17% premium to the IPO price at ₹430 apiece on the NSE, compared to the issue price of ₹425. On the BSE, it was listed at a 1.66% premium at ₹432 apiece.

After a muted debut on the exchanges, the stock failed to sustain its initial listing gains, tumbling 7.7% to ₹396.75 apiece from the listing price. The weak market debut was attributed to the modest response to its IPO, which received subscription rate of 1.29 times during its bidding period, which opened from February 14 and February 18.

Following the stock’s weak entry, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, advised investors to hold the stock, citing the company’s strong position in the power infrastructure sector.

“Post-listing, we continue to believe that Quality Power Electrical Equipments Ltd (QPEEL) presents a long-term investment opportunity in the rapidly growing energy transition and power infrastructure sector. With a strong global presence, specialized expertise in HVDC and FACTS technologies, and a diversified high-voltage equipment portfolio, the company is well-positioned for grid modernization and renewable energy integration. Hence, we recommend that allotted investors ‘HOLD’ the Quality Power Electrical Equipments Ltd IPO for the long term, despite potential short-term volatility post-listing,” said Prashanth Tapse.

About the Company

Quality Power is an Indian company serving global clients in critical energy transition equipment and power technologies. It provides high-voltage electrical equipment and solutions for electrical grid connectivity and energy transition.

The company specializes in power products and solutions across power generation, transmission, distribution, and automation sectors. Additionally, it offers equipment and solutions tailored for emerging applications, such as large-scale renewables, according to its DRHP report.

It is among the few global manufacturers of critical high-voltage equipment for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) networks. These technologies form key components in the energy transition from renewable sources to traditional power grids.

The company’s product portfolio includes reactors, transformers, line traps, instrument transformers, capacitor banks, converters, harmonic filters, and reactive power compensation systems, according to its DRHP report.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.