Introduction to Parth Electricals & Engineering Ltd IPO

The Parth Electricals & Engineering Ltd IPO is scheduled to open on August 3, 2025, offering a promising investment opportunity within the SME sector. This SME IPO aims to raise approximately INR 49.72 crore through a fresh issue of about 29.25 lakh equity shares priced between INR 160 and INR 170 each. With a lot size of 800 shares, the minimum investment amounts to around INR 1,36,000. This article details every essential aspect of the IPO, providing valuable insights for investors.

Company Overview

Founded several years ago, Parth Electricals & Engineering Ltd operates in the electrical equipment and engineering industry. The company specializes in manufacturing and supplying electrical components and engineering solutions, catering to diverse sectors. With a growing revenue base of approximately INR 176 crore in the financial year 2024-25 and a net profit after tax (PAT) of around INR 10 crore, Parth Electricals has demonstrated significant growth with a year-on-year PAT increase of 119.4%. The firm’s business model focuses on innovation and quality products to expand its customer base and market reach.

IPO Details

• IPO Type: SME IPO
• Issue Size: INR 49.72 crore (Fresh issue of ~29.25 lakh equity shares)
• Price Band: INR 160 to INR 170 per share
• Lot Size: 800 shares (Approx. investment INR 1,36,000)
• Opening Date: August 3, 2025
• Closing Date: August 5, 2025
• Listing Date: August 11, 2025
• Grey Market Premium (GMP): Data currently not publicly disclosed

IPO Objectives

The company plans to use the IPO proceeds primarily for expansion of its manufacturing facilities, reducing debt, and investing in research and development to bolster its product portfolio. These objectives aim to drive future growth and strengthen Parth Electricals’ competitive position in the electricals and engineering sector.

Pre-IPO Placements

There were no major pre-IPO placements or large investor participations reported ahead of this SME IPO issue, which is typical for SME level offerings focusing on attracting new retail and institutional investors.

Financial Highlights

• Revenue (2024-25): Approximately INR 176 crore
• Profit After Tax (PAT) (2024-25): Around INR 10 crore, showing substantial YoY growth of 119.4%
• Return on Equity (ROE): Data currently not detailed in public filings, but the company exhibits improving profitability

Peer Comparison

Compared with peers such as ABB India Ltd, Siemens Ltd, and CG Power & Industrial Solutions, Parth Electricals & Engineering Ltd operates on a smaller scale but is focused on niche segments within the electrical engineering market. Peers maintain higher market caps and more diversified operations. Investors should consider this context when evaluating valuation and growth potential.

Strengths

• Strong year-on-year revenue and profit growth indicating operational efficiency
• Focused niche products within the growing electrical engineering sector
• Clear use of IPO proceeds towards capacity enhancement and innovation

Risks

• SME market risks including liquidity and volatility in smaller-cap stocks
• Market competition from larger and well-established players
• Dependence on economic cycles affecting demand in industrial sectors

Expert Verdict

The Parth Electricals & Engineering Ltd IPO presents an exciting opportunity for investors looking to participate in the SME space with promising growth metrics. While the company is still emerging compared to industry giants, its financial trajectory and strategic IPO objectives suggest potential long-term value. Investors should balance the growth prospects with SME market risks and diversification in their portfolios.

Subscription Status

As of early subscription reports, the IPO has received robust interest, with subscription levels crossing 8 times the issue size, indicating strong investor demand across institutional and retail segments.

Allotment & Listing Timeline

• IPO Open Date: August 3, 2025
• IPO Close Date: August 5, 2025
• Allotment Date: Expected shortly after the closing date, typically within 7 working days
• Listing Date: August 11, 2025

FAQs

• What is the minimum investment required to apply? Approximately INR 1,36,000, based on the lot size of 800 shares at the upper price band.
• Is this a SME IPO? Yes, it is a Small and Medium Enterprise (SME) IPO.
• When will the shares be listed? Shares are expected to be listed on August 11, 2025.

How to Apply

Investors interested in applying for the Parth Electricals & Engineering Ltd IPO can do so through the online IPO platforms of their preferred brokers or via applications through the NSE SME platform where the shares will be listed. For detailed application procedures, please visit the official NSE SME IPO section or trusted brokerage portals.