IPO Opens: Quality Power Electrical Equipment Ltd.

Quality Power Electrical Equipments Limited shall open its Bid/Offer in relation to its initial public offer of Equity Shares on Friday, February 14, 2025.

The Anchor Investor Bid/ Offer Period opens and closes on Thursday, February 13, 2025. The Bid/ Offer Period will close on Tuesday, February 18, 2025.

• Issue Opens: Wednesday, February 14, 2025
• Issue Closes: Friday, February 18, 2025
• Face Value: Rs 10 each
• Price Band: Rs 401 to Rs 425 per share
• Lot Size: 26 Shares
• Listing On: BSE & NSE

The initial public offering comprises a fresh issue of Equity Shares (face value of ₹ 10 each) aggregating up to ₹2,250.00 million and an offer for sale of up to 14,910,500 Equity Shares by Chitra Pandyan.

The price band for the Offer has been fixed at ₹401 to ₹425 per Equity Share. Bids can be made for a minimum of 26 Equity Shares and in multiples of 26 Equity Shares thereafter.

The Company intends to utilize the Net Proceeds toward (i) Payment of the purchase consideration for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited estimated to be ₹1,170.00 million; (ii) Funding capital expenditure requirements of our Company for purchase plant and machinery estimated to ₹ 272.17 million and the balance amount towards funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes. The Offer for Sale comprises up to 14,910,500 Equity Shares by Promoter Selling Shareholders.

The Company is an Indian player serving global clients in critical energy transition equipment and power technologies. The Company provide high voltage electrical equipment and solutions for electrical grid connectivity and energy transition. The Company is a technology-driven company specializing in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors. Additionally, the company offer equipment and solutions tailored for emerging applications such as large-scale renewables.

The Company’s multiple manufacturing operations in India are spread across two locations, including Sangli, Maharashtra, and Aluva, Kerala. As part of its global expansion, the Company acquired 51% of the share capital in Turkey based company, Endoks Enerji Anonim Şirketi in 2011, which provides energy solutions specializing in smart grid technologies and power quality management.

Peers of Quality Power include Hitachi Energy India Limited, GE Vernova T&D India Limited and Transformers & Rectifiers (India) Limited. As of March 31, 2024, the Company had 210 customers. The Company’s end customers include power utilities, power industries, and renewable energy entities. The Company’s Revenue from operations for the financial year ended March 31, 2024 stood at ₹3,005.97 million with profit after tax margin of 16.74% and ROE of 29.15%. The Company derives the majority of its revenue from international operations, which constitutes more than 75%, of the Company’s total revenue from operations.

As per Company’s Proforma Consolidated Financial Information, during Fiscal 2024 and the six-month period ended September 30, 2024, the Consolidated Revenue from Operations was ₹ 5,190.49 million and ₹ 2,672.24 million respectively. Consolidated Profit after tax for the same period was ₹656.96 million and ₹537.88 million respectively.

For the six-month period ended September 30, 2024, revenue from operations in Quality Power Group and acquired entity Mehru (Standalone) was ₹1,557.38 million  and ₹1,116.80 respectively and profit after tax for the same period was  ₹500.78 million and ₹ 49.03 million respectively