Quality Power Electrical Limited IPO is fully book build issue and total IPO size is ₹858.70 crores. The share offering includes a fresh issue worth ₹225 crores and offer for sale of 1,49,10,500 shares.
The subscription period for the Quality Power Electrical Limited IPO starts on February 14, and ends on February 18.
The allotment process is expected to be finalized by February 19. The Quality Power Electrical Limited IPO is scheduled to list on BSE and NSE with a listing date of February 24.
The price band for the Quality Power Electrical Limited IPO is between ₹401 to ₹425 Per Share and lot size is 26 shares.
Registrar for this IPO is MUFG Intime India Private Limited (Link Intime India Private Limited ) and lead managers for Quality Power Electrical Limited IPO are Pantomath Capital Advisors Private Limited.
IPO Schedule
| IPO Open Date | Friday, 14 Feb, 2025 |
|---|---|
| IPO Close Date | Tuesday, 18 Feb, 2025 |
| IPO Allotment Date | Wednesday, 19 Feb, 2025 |
| Refund Initiation | Thursday, 20 Feb, 2025 |
| Share credit in Demat | Thursday, 20 Feb, 2025 |
| Listing Date | Monday, 24 Feb, 2025 |
Key Details
| Price Band | ₹401 to ₹425 Per Share |
|---|---|
| Lot Size | 26 Shares |
| Face Value | ₹10 Per Equity Share |
| Total Issue Size | ₹858.70 Crores |
| Fresh Issue | ₹225.00 Crores |
| OFS Issue | 14,910,500 Shares |
| Issue Type | Fresh Issue and Offer for Sale |
| Listing At | BSE & NSE |
Share Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB | 75% |
| Retail | 10% |
| NII/HNI | 15% |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 26 | 11,050 |
| Retail (Max) | 18 | 468 | 198,900 |
| S-HNI (Min) | 19 | 494 | 209,950 |
| S-HNI (Max) | 90 | 2340 | 994,500 |
About Quality Power Electrical Company
Quality Power Electrical Equipments Ltd: Pioneering Energy Transition
Quality Power Electrical Equipments Ltd. stands as an Indian leader serving global clients in the critical energy transition and power technologies sector. The company specializes in providing high-voltage electrical equipment and solutions that facilitate electrical grid connectivity and support the energy transition. It's a technology-driven organization offering a range of power products and solutions tailored for power generation, transmission, distribution, and automation, as well as emerging applications like large-scale renewable energy projects.
Key highlights of Quality Power's performance include:
- Strong Financial Performance: Profit after tax grew at a CAGR of 14.62% from FY22-FY24, and equity grew at a CAGR of 8.96% in the same timeframe. The company's Return on Equity (ROE) has been consistently the highest among its peers. ROE increased to 41.97% in H1FY25.
- Return on Capital Employed (ROCE): While ROCE has been lower than peers due to increasing debt levels, it has seen a sharp increase to 31.69% in H1FY25. The 3-year average ROCE is approximately 20.70%.
- Improved Liquidity: The current ratio significantly increased from 1.40x in FY24 to 1.90x in H1FY25, reflecting improved short-term liquidity.
- Global Export Presence: Quality Power has the highest percentage share of exports among its peers, increasing from 74.3% in FY22 to 80.7% in FY24. Revenue from international markets was ₹135.65 crore, ₹194.83 crore, ₹242.51 crore and ₹155.74 crore for FY22, FY23, FY24 and H1FY25 respectively, which constituted 74.27 %, 76.93 %, 80.68 %, and 75.77 % of total revenue from operations.
The company's manufacturing facilities adhere to global quality standards, and its Test & Research Lab in Sangli is NABL accredited. Quality Power is one of the few global manufacturers of critical high-voltage equipment for HVDC and FACTS networks, essential for integrating renewable energy sources. Its product offerings include reactors, transformers, and comprehensive grid interconnection solutions.
With operating facilities in India and Turkey, Quality Power is committed to sustainability and green energy initiatives, supporting decarbonization efforts through its technology-driven products and solutions.
Quality Power Electrical Financial Details
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 399.64 | 358.88 | 312.24 | 252.86 |
| Revenue | 155.74 | 300.60 | 253.25 | 182.64 |
| Profit After Tax | 50.08 | 55.47 | 39.89 | 42.23 |
| Net Worth | 238.63 | 190.33 | 175.66 | 160.29 |
| Reserves and Surplus | 113.35 | 81.04 | 111.95 | 92.39 |
| Total Borrowing | 25.55 | 38.28 | 10.61 | 11.52 |
₹ In Crore
Key Performance Indicator
| Basic EPS | Return on Net Worth | Net Asset Value | Debt-Equity Ratio | Return on Equity | Return on Capital Employed |
|---|---|---|---|---|---|
| 5.19 | 29.15% | 26.38 | 0.20 | 29.15% | 19.20% |
Offer Objectives
The Offer Objects primarily involve a fresh issue of equity shares and an offer for sale. The company plans to utilize the net proceeds from the fresh issue for several key purposes. A significant portion, ₹117 crore, is allocated for the payment of the purchase consideration for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited.
Additionally, ₹27.21 crore is earmarked for funding capital expenditure requirements, specifically for purchasing plant and machinery. A portion of the funds will also be used for funding inorganic growth through unidentified acquisitions, strategic initiatives, and general corporate purposes. The amount utilized for these unidentified acquisitions and general corporate purposes shall not exceed 35% of the Gross Proceeds. The amount utilized for general corporate purposes alone shall not exceed 25% of the Gross Proceeds.
Lock-in Periods: A 90-day lock-in applies to 50% of equity shares allotted to Anchor Investors, while the remaining 50% face a 30-day lock-in. Promoters' contribution, constituting 20% of the fully diluted post-offer equity share capital, is locked in for 3 years. The pre-offer capital is subject to a 6-month lock-in, with exceptions for Offer for Sale equities and shares held by specified investment funds.
The board approved these object at a meeting held on September 10, 2024.
Company Details
Address:
Plot No. L-61, M.I.D.C Kupwad Block, Sangli 416 436 Maharashtra, India
Phone: + 91 233 264 5432
Email: [email protected]
Website: http://www.qualitypower.com
IPO Registrar Details
MUFG Intime India Private Limited (Link Intime India Private Limited)
Phone: +91 810 811 4949
Email: [email protected]
Website: http://www.linkintime.co.in
Offer Prospectus & Documents
Lead Managers
- Pantomath Capital Advisors Private Limited
