Quality Power IPO: GMP Crashes to ₹5 – Should You Still Invest?

The Quality Power IPO has been a hot topic in the stock market, but its Grey Market Premium (GMP) has dropped to just ₹5. This sudden dip has left many investors wondering whether it’s still worth subscribing to this IPO or if they should stay away. Let’s analyze the IPO details, subscription status, financials, and expected listing performance to help you make an informed decision.


Quality Power IPO Key Details

  • IPO Open Date: February 14, 2025
  • IPO Close Date: February 18, 2025
  • Issue Price: ₹401 – ₹425 per share
  • Lot Size: 26 shares
  • Total Issue Size: ₹858.70 crore (₹225 crore fresh issue + ₹633.70 crore OFS)
  • Allotment Date: February 19, 2025
  • Listing Date: February 21, 2025
  • Stock Exchange: NSE & BSE

Quality Power IPO GMP Trend

The Grey Market Premium (GMP) is often seen as an indicator of expected listing gains. However, for Quality Power IPO, the GMP has fallen sharply in the past few days:

  • February 10: ₹49
  • February 11: ₹20
  • February 12: ₹35
  • February 17: ₹5

This downward trend suggests weak investor confidence or market uncertainty surrounding this IPO.


Why Did GMP Drop to ₹5?

  1. Weak Market Sentiment – The overall stock market is experiencing volatility, impacting IPO enthusiasm.
  2. High Valuation Concerns – Investors are skeptical about whether the ₹425 price band is justified.
  3. Limited Subscription Demand – Low interest from institutional and retail investors has contributed to a declining GMP.
  4. Past IPO Performance – Recent IPOs with similar financials have failed to deliver strong listing gains, making investors cautious.

Should You Still Invest in the Quality Power IPO?

Reasons to Invest:
✔️ Established player in the power equipment sector
✔️ Revenue and profit growth over recent years
✔️ Potential for long-term industry growth

Reasons to Avoid:
❌ Falling GMP signals weak listing expectations
High valuations compared to industry peers
Stock market volatility affecting IPO performance

Final Verdict: If you are looking for listing gains, the current GMP suggests low profit potential. However, if you believe in Quality Power’s long-term growth, consider investing with a long-term perspective.


Quality Power IPO Subscription Status

As of Day 2 (February 17, 2025), the IPO has received moderate subscription numbers:

  • Retail Investors: 1.2x subscribed
  • Non-Institutional Investors (NIIs): 0.9x subscribed
  • Qualified Institutional Buyers (QIBs): 1.5x subscribed

A strong final-day subscription surge could improve GMP and listing expectations.


Quality Power IPO Listing Price Prediction

Given the current ₹5 GMP, the estimated listing price could be around ₹430 per share, which is only a slight premium over the issue price of ₹425. If the market remains weak, it could even list at a discount.


Conclusion

The Quality Power IPO GMP crash is a red flag for short-term investors. If you are considering investing, watch the final-day subscription numbers and market conditions closely. For long-term investors, it may still be a good bet, but short-term listing gains appear uncertain at the moment.

🔹 Are you applying for the Quality Power IPO? Let us know in the comments below!


FAQs

1. What is the current GMP of Quality Power IPO?
As of February 17, 2025, the GMP is ₹5, indicating weak listing expectations.

2. When is the Quality Power IPO listing?
The IPO is set to list on February 21, 2025, on NSE & BSE.

3. Should I invest in Quality Power IPO for listing gains?
Given the low GMP, listing gains seem uncertain. Consider investing only if you believe in the company’s long-term potential.

4. What is the lot size of the Quality Power IPO?
The minimum lot size is 26 shares, requiring a minimum investment of ₹10,426.