- Subscription opens on Friday, February 14 and closes on Tuesday, February 18
- Anchor investor allocation is on Thursday, February 13
- The lot size is 26 equity shares and in multiples of 26 equity shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, FEB 11
Quality Power Electrical Equipments Limited on Tuesday announced that IPO price band has been fixed in the range of ₹401 to ₹425 per equity share of the face value of ₹10. The subscription period is scheduled from Friday, February 14, to Tuesday, February 18. The allocation to anchor investors is scheduled to take place on Thursday, February 13.
The lot size for Quality Power IPO is 26 equity shares and in multiples of 26 equity shares thereafter.
Quality Power’s IPO consists of both a fresh issue and an offer for sale (OFS), with the fresh issue valued at ₹225 crore and an offer for sale worth ₹633.70 crore. The OFS portion will include 1.2 crore equity shares offered by promoter Chitra Pandyan.
The net proceeds from the fresh issue are intended to be used for several purposes, (i) Payment of the purchase consideration for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited estimated to be ₹117 crore (ii) Funding capital expenditure requirements of our Company for purchase plant and machinery estimated to ₹ 27.2 crore and the balance amount towards funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
In the IPO, Quality Power has reserved 75% of the shares in the public issue for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and 10% of the offer is reserved for retail investors.
It has manufacturing facilities in Sangli, Maharashtra, and Aluva, Kerala. In 2011, it acquired 51% of Endoks, a Turkey-based subsidiary.
Quality Power Electrical Equipments operates in the domain of energy transition technology and electrical solutions. The firm offers high-voltage electrical devices and services aimed at enhancing grid connectivity and facilitating energy transition, with a focus on power solutions across the generation, transmission, distribution, and automation fields.
The company produces essential high-voltage apparatus for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) networks, supporting the integration of renewable energy sources into power grids.
The Company’s Revenue from operations for the financial year ended March 31, 2024 stood at ₹300.597 crore 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 ₹519.05 crore and ₹267.22 crore, respectively. Consolidated Profit after tax for the same period was ₹65.7 crore and ₹53.79 crore, respectively.
For the six-month period ended September 30, 2024, revenue from operations in Quality Power Group and acquired entity Mehru (Standalone) was ₹155.74 crore and ₹111.68 crore, respectively and profit after tax for the same period was ₹50.08 crore and ₹4.90 crore, respectively.
Quality Power share price is likely to be listed on BSE and NSE on Friday, February 21.
Pantomath Capital Advisors Pvt Ltd serves as the book-running lead manager for the Quality Power IPO, and Link Intime India Private Ltd acts as the registrar for this issue.
