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Ic Electricals operates in the electrical equipment and power electronics sector, focusing on manufacturing and distribution. The company has demonstrated strong financial growth and profitability, supported by an experienced management team and well-equipped facilities. The IPO is an SME issue with a book-build structure.
Deterministic verdict 'Apply': listing=83/Strong Apply, short=78/Apply, long=77/Apply; overall=80.4; confidence=100.0/100 | computed financials: fin=71, growth=94, D/E=1.13 (70% math / 30% model) | market signals: alignment=n/a (OFS None%), anchor quality=20 (marquee 0.0%), GMP trend=rising, overhang=80 (-4.0 pts short-term) | demand profile: reservation weights QIB/NII/Ret 28%/22%/50%, QIB effective demand=68.73x, institutional contribution=16%, breadth=0.93 | unlocks: anchor unlock ~50.0% of issue at T+30d, ~50.0% at T+90d | rule: all recommendations positive. | Analyst notes: Ic Electricals SME IPO presents a highly attractive investment opportunity. The company demonstrates robust financial health with strong and consistent growth in revenue and PAT, coupled with healthy margins and excellent return ratios (ROE, ROCE). The post-IPO valuation is exceptionally compelling at a P/E of 12.82x, especially when compared to its listed peer. Governance appears sound with strong promoter holding and an experienced management team. Market sentiment is overwhelmingly positive, evidenced by unprecedented subscription rates across all investor categories and a significant GMP. While the company carries a moderate debt-to-equity ratio and faces typical industry risks like raw material price volatility, these are largely mitigated by its strong fundamentals and the high demand for the IPO. The overall profile suggests a high probability of significant listing gains and good long-term potential.
| Category | Shares Offered | % of Issue | Share |
|---|---|---|---|
| QIB Shares Offered | 22,86,000 | 47.24% | |
| NII (HNI) Shares Offered | 6,98,400 | 14.43% | |
| Retail Shares Offered | 16,12,800 | 33.33% | |
| Market Maker Shares Offered | 2,42,400 | 5.01% |
| Investor | |||
|---|---|---|---|
| PINE OAK GLOBAL FUND-CLASS B | 2,01,600 | ₹2 Cr | 14.74% |
| SAGEONE-FLAGSHIP GROWTH OE FUND | 4,03,200 | ₹3.99 Cr | 29.47% |
| BENGAL FINANCE & INVESTMENT PVT.LTD. | 5,04,000 | ₹4.99 Cr | 36.84% |
| AKALPYA INDIA INVESTMENT TRUST | 1,57,200 | ₹1.56 Cr | 11.49% |
| ARTHASANCHAY INVESTMENT TRUST-ARTHASANCHAY GROWTH FUND | 1,02,000 | ₹1.01 Cr | 7.46% |
Premium gain of 40.4% over issue price.
Strong and consistent revenue growth (20.2% CAGR)
Exceptional PAT growth (55.2% CAGR)
Healthy and improving EBITDA and PAT margins (17.83% and 9.84% respectively in FY26)
Excellent return ratios (ROE 23.88%, ROCE 18.18% in FY26)
Highly attractive post-IPO P/E of 12.82x compared to peer (Hind Rectifiers at 99.5x)
Strong promoter holding post-IPO (60.94%)
Experienced management team
Overwhelmingly positive market sentiment with high GMP (40.4% premium) and exceptional subscription rates across all categories (QIB 241.75x, NII 764.38x, Retail 372.51x)
Presence of quality anchor investors
Well-equipped manufacturing facilities and focus on R&D
Successful expansion into new product lines, favorable government policies supporting infrastructure development, and continued innovation through R&D.
Stable market demand for electrical equipment, efficient management of working capital, and sustained operational efficiencies.
Increased competition leading to pricing pressure, significant volatility in raw material costs, or an economic slowdown impacting industrial demand.
Exceptional subscription rates across all investor categories, a high Grey Market Premium (GMP) of over 40%, and an attractive post-IPO valuation strongly indicate significant listing gains.
The robust financial performance, compelling valuation, and overwhelming market sentiment are likely to sustain positive momentum in the short term post-listing.
The company's strong historical growth, healthy profitability, efficient capital utilization, and attractive valuation provide a solid foundation for long-term value creation in the growing electrical equipment sector.
Final verdict: Apply (confidence High).
Positive: Strong revenue growth (20.2% CAGR) and exceptional PAT growth (55.2% CAGR) over the last two fiscal years.
Concern: Moderate debt-to-equity ratio of 1.13 in FY26.
Listing-gain vs long-term: Strong Apply / Apply.
Concern: Reliance on working capital funding as an object of the issue.