Power up your portfolio with Quality Power Electrical Equipments Limited's ₹858.70 crore IPO hitting the market from February 14-18, 2025. This powerhouse offering combines a fresh issue of ₹225 crores with an offer for sale worth ₹633.70 crores, totaling 2.02 crore shares from one of India's leading high-voltage equipment manufacturers.
Investors can energize their investments with shares priced between ₹401-425, requiring a modest entry ticket of ₹10,426 for a lot of 26 shares. With share allotment scheduled for February 19 and listing on both BSE and NSE set for February 21, this IPO offers a unique opportunity to plug into India's growing power infrastructure story through a company that's been electrifying the nation's grid for over two decades.
Quality Power Electrical Equipments Limited IPO is a fundraise worth ₹858.70 crores comprising fresh issue of 0.53 crore shares and offer for sale of 1.49 crore shares. The IPO will be available for subscription from February 14, 2025, to February 18, 2025, providing an opportunity for investors looking to gain a stake in the energy sector.
| Quality Power Electrical Equipments IPO date | February 14, 2025 - February 18, 2025 |
| Price band | ₹401 to ₹425 per share |
| Face value | ₹10 per share |
| Lot size | 26 shares |
| Issue type | Book-built issue IPO |
| Fresh issue | 52,94,118 shares amounting to ₹225 crores |
| Offer for Sale (OFS) | 1,49,10,500 shares amounting to ₹633.70 crores |
| Total issue size | 2,02,04,618 shares amounting to ₹858.70 crores |
| Listing at | BSE, NSE |
| Share holding post issue | 7,74,44,118 shares |
| Share holding pre issue | 7,21,50,000 shares |
The Quality Power Electrical Equipments Limited IPO opens for subscription on February 14, 2025, and closes on February 18, 2025, with allotment slated for February 19, 2024.
| IPO open date | February 14, 2025 (Friday) |
| IPO close date | February 18, 2025 (Tuesday) |
| Basis of allotment | February 19, 2025 (Wednesday) |
| Initiation of refunds | February 20, 2025 (Thursday) |
| Credit of shares to demat account | February 20, 2025 (Thursday) |
| Listing date on exchanges | February 21, 2025 (Friday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 18, 2025 (Tuesday) |
Quality Power Electrical Equipments Limited, established in 2001, has positioned itself as a key player in energy transition equipment and power technologies, specializing in high-voltage electrical equipment for grid connectivity. With over two decades of experience, the company manufactures critical components for HVDC and FACTS networks, facilitating the integration of renewable energy into power grids. Their comprehensive product portfolio includes power products like reactors, transformers, and line traps, along with power quality systems such as static VAR compensators and harmonic filters.
The company operates through manufacturing facilities in Sangli and Aluva, and has expanded internationally through a 51% stake in Turkish subsidiary Endoks, acquired in 2011. With a workforce of 163 full-time employees and 372 contractual workers, they serve 210 customers including power utilities, industries, and renewable energy entities. Their strategic positioning in both domestic and international markets, combined with their expertise in power grid solutions, makes them a significant player in the energy transition sector.
The company plans to utilize the fresh issue proceeds for four key purposes: acquiring Mehru Electrical and Mechanical Engineers Private Limited, purchasing new plant and machinery, funding potential unidentified acquisitions and strategic initiatives, and meeting general corporate requirements. However, the proceeds from the Offer for Sale portion will go directly to the selling shareholders and not to the company.
The Quality Power Electrical Equipments Limited IPO showcases a healthy market capitalization of ₹3,291.38 crores. Key performance indicators, as on March 31, 2024, reflect the company's financial health, with a Return on Equity (RoE) of 29.15%, Return on Capital Employed (RoCE) of 19.20%, and Debt-to-Equity ratio of 0.20.
The Return on Net Worth (RoNW) stands at 29.15%, while the Price-to-Book Value (P/BV) is seen at 16.11 and the PAT Margin is 16.74. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹7.69 while it is ₹12.93 post-IPO. Similarly, the price-to-earnings ratio pre-IPO is 55.28 and 32.86 post-IPO.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Assets | 399.64 | 358.88 | 312.24 | 252.86 |
| Revenue | 182.72 | 331.4 | 273.55 | 211.73 |
| Profit After Tax | 50.08 | 55.47 | 39.89 | 42.23 |
| Net Worth | 238.63 | 190.33 | 175.66 | 160.29 |
| Reserves & Surplus | 150.43 | 162.56 | 153.86 | 149.76 |
| Total Borrowing | 25.55 | 38.28 | 10.61 | 11.52 |
Amount in ₹ crores
Quality Power Electrical Equipments Limited has positioned itself as a leader in the global energy transition and power technology sector, capitalizing on the global shift towards decarbonization and the adoption of renewable energy. The company boasts a diversified portfolio of products including high-voltage electrical equipment and advanced power technology, offering solutions for energy transmission and grid stability. This extensive range serves both domestic and international markets, with a strong presence in various industries, including automobiles, renewable energy, oil & gas, and steel. Furthermore, the company has a solid history of strategic acquisitions, contributing to an expanded order book and sustained growth.
The company's strong track record of growth and financial performance is backed by a robust management team with deep domain experience and a strong research and development team. This enables the company to consistently innovate and offer future-ready solutions. Quality Power’s reputation for delivering high-quality products and maintaining long-term customer relationships adds to its competitive edge. With an impressive 74% of revenue generated from international markets, and a diversified customer base, the company is well-poised to benefit from the increasing demand for energy-efficient technologies, further expanding its market share both domestically and internationally.
Quality Power Electrical Equipments Limited faces a high degree of reliance on international markets, with over 74% of its total revenue coming from foreign sales. While expanding into new geographical regions may offer growth opportunities, it also exposes the company to significant risks, including potential financial losses and liabilities in those regions. Additionally, the company is highly dependent on the performance of markets for HVDC and FACTS technologies, which are vulnerable to various external factors, such as economic fluctuations and regulatory changes, potentially affecting business stability.
The company’s operations are susceptible to risks related to supply chain disruptions, raw material shortages, and price fluctuations. Any delay or increase in raw material costs could adversely impact profitability and overall operations. Furthermore, Quality Power’s reliance on a few large customers, with its top 10 clients contributing over 52% of revenue, heightens the vulnerability of its business to changes in client relationships or purchasing behaviors. The company’s inability to maintain these key relationships or expand its customer base could significantly affect its revenue streams. Additionally, with operating facilities located on leasehold lands, the inability to renew leases or relocate its operations could also pose a threat to business continuity.
The Quality Power Electrical Equipments Limited IPO presents a promising opportunity for investors to tap into the energy sector at its early public offering stage. While the potential for early investment is appealing, it is crucial for investors to carefully assess the company’s fundamentals, market positioning, and growth prospects before making any decisions. Prospective investors should conduct comprehensive research to ensure this opportunity aligns with their financial goals and risk appetite, turning this exciting prospect into a well-informed and strategic investment decision.
What is the Quality Power Electrical Equipments IPO?
The Quality Power Electrical Equipments Limited IPO is a main-board offering consisting of a fresh issue of 0.53 equity shares and an offer for sale of 1.49 crore shares with a face value of ₹10 per share, aiming to raise a total of ₹858.70 crores. The share price is set between ₹401 and ₹425, with a minimum order quantity of 26 shares. This IPO will be open for subscription from February 14, 2025, to February 18, 2025. Link Intime India Private Limited is the registrar while Pantomath Capital Advisors Private Limited is the book-running lead manager.
When will the Quality Power Electrical Equipments IPO open?
The Quality Power Electrical Equipments Limited IPO will open for subscription on February 14, 2025, and will close on February 18, 2025.
When is the Quality Power Electrical Equipments IPO listing date?
The tentative listing date for the Quality Power Electrical Equipments Limited IPO is Friday, February 21, 2025.
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