Parth Electricals and Engineering IPO opens August 4; price band set at Rs 160–170

Time of India

21 hours ago

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Parth Electricals and Engineering has announced the launch of its initial public offering ( IPO ), which will open on August 4 and close on August 6. The price band has been set at Rs 160–Rs 170 per equity share, with a face value of Rs 10 each.The anchor investor bid/issue period is scheduled for August 1, 2025 — one working day prior to the issue opening date.The IPO comprises up to 29,24,800 equity shares of face value Rs 10 each, offered at a price band of Rs 160–Rs 170 per share (including a share premium of Rs 150–Rs 160), aggregating up to Rs 4,966.31 lakh. Of this, 1,46,400 equity shares at Rs 170 per share, aggregating Rs 248.88 lakh, will be reserved for subscription by the market maker, while 68,800 shares, aggregating up to Rs 111.112 lakh, will be reserved for subscription by eligible employees.Also Read | MF Tracker: UTI Mid Cap Fund turns Rs 10,000 SIP to nearly Rs 1.62 crore in 2 decades The floor price is 16 times the face value, and the cap price is 17 times the face value of the equity shares.The company, in consultation with the Book Running Lead Manager (BRLM), may offer a discount of up to 5% of the offer price (equivalent to Rs 8 per equity share) to eligible employees bidding in the employee reservation portion.The public issue, excluding the market maker reservation, employee reservation, and pre-IPO raise (i.e., the issue of 7,25,000 equity shares of face value Rs 10 each at an issue price of Rs 170 per equity share, aggregating up to Rs 4,606.32 lakh after the filing of the DRHP), is hereinafter referred to as the 'net issue.'The public issue and the net issue will constitute 21.40% and 19.82%, respectively, of the post-issue paid-up equity share capital of the company.This issue is being made through the book-building process in accordance with Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 229(2) and Regulation 253 of the SEBI ICDR Regulations.Not more than 50% of the net issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs).The company may, in consultation with the BRLM, allocate up to 60% of the QIB portion to Anchor Investors on a discretionary basis, in accordance with SEBI ICDR Regulations. Of this, one-third shall be reserved for domestic mutual funds, subject to valid bids being received at or above the Anchor Investor Allocation Price.In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance equity shares shall be added to the Net QIB Portion. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to mutual funds only. The remainder of the Net QIB Portion shall be available for allocation to all QIB bidders, including mutual funds, subject to valid bids being received at or above the issue price.If the aggregate demand from mutual funds is less than 5% of the Net QIB Portion, the balance equity shares available for allocation in the mutual fund portion shall be added to the remaining Net QIB Portion for proportionate allocation to QIBs.Additionally, (i) not less than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Investors (NIIs), of which:(a) one-third shall be reserved for applicants with an application size of more than two lots and up to an amount not exceeding Rs 10 lakh; and(b) two-thirds shall be reserved for applicants with an application size of more than Rs 10 lakh.Any unsubscribed portion in either of these NII sub-categories may be allocated to applicants in the other sub-category.(ii) Not less than 35% of the Net Issue shall be available for allocation to retail individual investors applying for the minimum application size, in accordance with SEBI ICDR Regulations — subject to valid bids being received at or above the issue price.Also Read | JioBlackRock Mutual Fund to launch 5 index NFOs next week. Check dates, other details Further, equity shares will be allocated on a proportionate basis to eligible employees applying under the employee reservation portion, subject to valid bids being received from them.All bidders are required to participate in the issue by mandatorily utilizing the Application Supported by Blocked Amount (ASBA) process, by providing details of their respective ASBA accounts, in which the corresponding bid amounts will be blocked by the Self Certified Syndicate Banks (SCSBs), or under the UPI mechanism, as the case may be, to the extent of the respective bid amounts.Anchor Investors are not permitted to participate in the issue through the ASBA process.All bidders (other than Anchor Investors) shall mandatorily participate in this offer through the ASBA process and must provide details of their respective bank accounts, in which the bid amount will be blocked by the SCSBs.Horizon Management Private Limited is the Book Running Lead Manager to the offer. The equity shares of Parth Electricals and Engineering Limited are proposed to be listed on the Emerge Platform of NSE (NSE Emerge).Parth Electricals & Engineering Limited is a trusted name in the field of electrical and engineering services in India. Established on May 4, 2007, as Parth Electricals & Engineering Private Limited under the Companies Act, 1956, the company has grown steadily to meet the dynamic needs of the infrastructure and industrial sectors.Reflecting its long-term vision and future aspirations, the company transitioned to a public limited entity on November 14, 2024, and is now known as Parth Electricals & Engineering Limited.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)