Quality Power Electrical Equipments IPO open on February 14 – Check Details

Quality Power Electrical Equipments IPO

Quality Power Electrical Equipment IPO: Price Band Between ₹400-430, ₹900 Crore Issue to Open on February 14, 2025

The much-anticipated Initial Public Offering (IPO) of Quality Power Electrical Equipment, a key player in the high-voltage electrical equipment and solutions sector, is set to open on February 14, 2025.

The company plans to raise ₹900 crore through this public offering, which will be structured within a price band of ₹400 to ₹430 per share.

This price band, however, is yet to be officially confirmed, and market observers eagerly await further announcements from the company.

The IPO is expected to generate considerable investor interest, given the company’s impressive position in the energy transition space and its strong growth potential.

The offer will also include a mix of fresh equity shares and an offer for sale from the company’s promoters.

The issue is scheduled to close on February 18, 2025, with allotments expected to be finalized by February 20, 2025.

The listing of shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) is expected to take place on February 24, 2025.

Key IPO Details:

• IPO Opening Date: February 14, 2025
• IPO Closing Date: February 18, 2025
• Anchor Investor Bidding Date: February 13, 2025
• Allotment Date: February 20, 2025
• Listing Date: February 24, 2025
• Price Band: ₹400–430 (subject to official confirmation)

Anchor investors will have the opportunity to bid a day earlier, on February 13, 2025, providing a glimpse into the level of interest and demand from institutional investors.

This early window for anchor bids allows for better price discovery before the wider public offering opens.

About Quality Power Electrical Equipment:

Quality Power Electrical Equipment is an industry leader in providing high-voltage electrical equipment and technology solutions.

The company plays a vital role in facilitating the global energy transition and powering the infrastructure necessary for grid connectivity, particularly in the renewable energy space.

It offers a wide range of tailored equipment and services, including solutions for emerging applications such as large-scale renewable energy projects, smart grids, and electrical transmission and distribution systems.

With expertise in power generation, transmission, distribution, and automation sectors, the company is well-positioned to capitalize on the growing demand for energy solutions that support sustainable and renewable energy systems.

Quality Power Electrical Equipment’s products are integral to the efficient operation of electrical grids, enabling the integration of renewable energy sources such as wind and solar into national and regional power networks.

The company’s ability to deliver cutting-edge, high-voltage solutions for the energy transition is at the heart of its long-term growth strategy.

By targeting both domestic and international markets, Quality Power Electrical Equipment is committed to driving innovation and providing high-quality solutions that cater to the evolving needs of the energy sector.

How the IPO Funds Will Be Utilized:

The IPO proceeds will be used for several critical purposes to support the company’s growth and strategic objectives.

A total of ₹117 crore from the fresh issue will be allocated for the acquisition of Mehru Electrical and Mechanical Engineers, a key strategic move that will enhance Quality Power Electrical Equipment’s capabilities and market reach.

This acquisition aligns with the company’s goal of expanding its product offerings and improving its manufacturing processes.

In addition, ₹27.2 crore of the funds will be used for the purchase of plant and machinery, which will further enhance the company’s production capacity and technological capabilities.

The remaining portion of the raised funds will be directed towards inorganic growth, strategic initiatives, and general corporate purposes that will strengthen the company’s market position and fuel long-term growth.

The use of IPO funds underscores the company’s commitment to expanding its market footprint, increasing production capacity, and investing in technologies that support sustainable energy infrastructure.

Promoters and Management:

Quality Power Electrical Equipment is led by a strong group of promoters, including Thalvaidurai Pandian, Chitra Pandian, Bharanidharan Pandian, and the Pandian Family Trust.

The promoters bring extensive industry expertise and leadership to the company, with a clear vision to position Quality Power Electrical Equipment as a leading player in the energy and power equipment sector.

The company’s manufacturing operations are spread across two key locations in India – Sangli, Maharashtra, and Aluva, Kerala.

These facilities are equipped with state-of-the-art technology, which supports the company’s capabilities in manufacturing high-voltage electrical equipment and providing efficient, reliable solutions to its global customer base.

Industry Landscape and Competitors:

Quality Power Electrical Equipment operates in a competitive market that includes both domestic and international players.

The company faces competition from well-established companies such as Transformers & Rectifiers (India), Hitachi Energy India, and GE Vernova T&D India.

These companies are prominent in the power equipment manufacturing space, offering similar products and services related to power generation, transmission, and distribution.

Despite this competition, Quality Power Electrical Equipment stands out with its focus on high-voltage electrical solutions tailored for emerging energy technologies.

Its innovative approach and strong relationships with clients in renewable energy sectors provide it with a unique competitive advantage.

Financial Performance:

Quality Power Electrical Equipment has demonstrated strong financial growth in recent years. For the financial year 2024 (FY24), the company reported a revenue of ₹331.4 crore, which represents a significant increase compared to ₹273.55 crore in FY23.

This growth in revenue is a testament to the company’s expanding market presence and increasing demand for its products and services.

The company also reported a net profit of ₹55.47 crore in FY24, compared to ₹39.89 crore in the previous year, reflecting a solid increase in profitability.

This surge in net profit highlights the company’s efficient operations and its ability to maintain healthy margins despite increasing costs in the power equipment sector.

Additionally, the company’s borrowings have increased to ₹38.28 crore in FY24, up from ₹10.61 crore in FY23, which suggests that the company is leveraging debt to fund its growth initiatives, including acquisitions and capital expenditures.

IPO Allocation Structure:

The IPO will be structured with the following allocation:

• 75% of the IPO will be reserved for Qualified Institutional Buyers (QIBs), ensuring strong participation from institutional investors.
• 10% of the IPO will be allocated to retail investors, providing an opportunity for individual investors to participate in the public offering.
• 15% of the IPO will be allocated to Non-Institutional Investors (NIIs), which includes high-net-worth individuals (HNIs) and other non-institutional participants.

This allocation structure is designed to ensure a broad and diverse investor base, supporting the long-term growth and stability of the company post-listing.

Underwriters and Registrar:

Pantomath Capital Advisors is the sole book running lead manager for the Quality Power Electrical Equipment IPO, providing advisory and underwriting services.

Meanwhile, Link Intime India will act as the registrar for the offering, handling the allotment process and other administrative functions related to the IPO.

Final Remarks:

As Quality Power Electrical Equipment prepares to go public with its ₹900 crore IPO, it presents an exciting investment opportunity in a rapidly evolving sector.

With a strong financial track record, solid market growth prospects, and strategic initiatives in place, the company is well-positioned to capitalize on the global energy transition.

Investors looking for exposure to high-voltage electrical solutions and power technologies will find this IPO particularly compelling.

The upcoming IPO is poised to offer substantial long-term growth potential, and with a clear roadmap for utilizing the raised funds, Quality Power Electrical Equipment is set to strengthen its position as a leader in the energy equipment space.