HPL Electric lists at a discount

HPL Electric, which makes metering solutions, switchgears, lighting equipment and wires and cables, has listed itself on the national bourses at Rs 192, down by 5.27 per cent to the issue price of Rs 202 per share. The Initial Public Offer (IPO) of the company which opened on September 22 was oversubscribed a little over eight times. The quota reserved for qualified institutional buyers (QIBs) was oversubscribed 5.77 times while for non-institutional investors, was oversubscribed 22.20 times. The retail investor portion saw 3.31 times subscription. 

The proceeds of the issue will be utilised for repayment of loans, to fund working capital requirements and for other general corporate purposes, according to the prospectus of the company. The issue is being managed by SBI Capital Markets, ICICI Securities and IDFC Bank.

The company’s revenue has grown at a CAGR of 11.5 per cent over last five years. The company has earned 3.3 per cent margins in last few years. The company has largest market share in electrical energy markets (47 per cent of revenue in FY16) in India with 20 per cent market share, is the fifth largest player in LED lamps with 5 per cent market share and 5 per cent market share in LV switch gear markets.