July 30, 2025: Parth Electricals and Engineering Limited (“Company”), established in 2005, is a leading company in electrical components, the company expertises in technologically engineered products with strong focus on quality, design and product development, will be launching its initial public offering (“IPO” or the “Offer”) which is scheduled to open on Monday, August 4, and close on Wednesday, August 6, 2025, with a price band of Rs. 160 – Rs. 170 per Equity Share of face value of Rs. 10 each of the Company (the “Equity Shares”). The Anchor Investor Bid/Issue Period shall be Friday, August 1, 2025 being one working day prior to the Issue opening date.
Initial Public Offer of upto 29,24,800 equity shares of face value of ₹ 10/- each (“Equity Shares”) of the company at an issue price band of Rs. 160 – Rs. 170 per equity share (including a share premium of ₹ Rs. 150 – Rs. 160 per equity share) for cash, aggregating up to ₹ 4,966.31 lacs (“Public Issue”) out of which 1,46,400 equity shares of face value of ₹ 10/- each, at an issue price of ₹ 170 per equity share for cash, aggregating ₹ 248.88 lacs will be reserved for subscription by the market maker to the issue (the “Market Maker Reservation Portion”), and 68,800 equity shares aggregating up to ₹ 111.112 lacs will be reserved for subscription by Eligible Employees (as defined hereinafter) (the “Employee Reservation Portion”). The company, in consultation with the BRLM, may offer a discount of up to 5% of the offer price (equivalent to ₹ 8 per equity share) to the eligible employees bidding in the employee reservation portion (“Employee Discount”). The public issue less market maker reservation portion, employee reservation portion and pre-IPO raise (post filing DRHP) i.e. issue of 7,25,000 equity shares of face value of ₹ 10/- each, at an issue price of ₹ 170 per equity share for cash, aggregating up to ₹ 4,606.32 lacs is hereinafter referred to as the “net issue”. The public issue and net issue will constitute 21.40% and 19.82 % respectively of the post- issue paid-up equity share capital of our company.
This Issue is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 229 (2) of the SEBI ICDR Regulations and in compliance with Regulation 253 of the SEBI ICDR Regulations, wherein not more than 50 % of the Net Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that our Company may, in consultation with the Book Running Lead Manager, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds 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, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. However, 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 will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. Further, (i) not less than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Investors out of which (a) one third of such portion shall be reserved for applicants with application size of more than two lots and up to such lots equivalent to not more than ₹ 10 lakhs; and (b) two-third of such portion shall be reserved for applicants with application size of more than ₹ 10 lakhs; provided that the unsubscribed portion in either of the sub-categories specified in clauses (a) or (b), investors may be allocated to applicants in the other sub-category of Non-Institutional Investors; and (ii) not less than 35% of the Net Issue shall be available for allocation to Individual Investors who applies for minimum application size in accordance with the SEBI ICDR Regulations; in each case subject to valid Bids being received from them at or above the Issue Price. Further, Equity Shares capital 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 Account (as defined hereinafter) 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 respective Bid Amounts. Anchor Investors are not permitted to participate in the Issue through the ASBA process. For details, see “Issue Procedure” on page 287 of this Draft Red Herring Prospectus.
All Bidders (other than Anchor Investors) shall mandatorily participate in this Offer through the Application Supported by Block Amount (“ASBA”) process, and shall provide details of their respective bank account in which the Bid Amount will be blocked by the SCSBs. Anchor Investors are not permitted to participate in this Offer through the ASBA process.
Horizon Management Private Limited is the Book Running Lead Manager (“BRLM”) to the Offer.
The Equity Shares of Parth Electricals and Engineering Limited are proposed to be listed on Emerge Platform of NSE (NSE Emerge).