Quality Power is launching an IPO worth ₹858.70 crore, comprising a fresh issue of 0.53 crore shares aggregating ₹225 crore and an offer-for-sale (OFS) of 1.49 crore shares amounting to ₹633.70 crore. The IPO opened for subscription from February 14, 2025, and closes on February 18, 2025, with the allotment expected to be finalised on February 19, 2025. The shares are set to be listed on the BSE and NSE, with a tentative listing date of February 21, 2025.
The price band for the IPO is set at ₹401 to ₹425 per share, and the minimum lot size for application is 26 shares. Retail investors need to invest at least ₹10,426, though bidding at the cutoff price may require around ₹11,050 due to oversubscription possibilities. For small non-institutional investors (sNII), the minimum investment is 19 lots (494 shares) at ₹2,09,950, while for big non-institutional investors (bNII), it is 91 lots (2,366 shares) at ₹10,05,550.
Pantomath Capital Advisors Pvt Ltd is managing the IPO, and Link Intime India Private Ltd is handling the share allotment process.
Industry Outlook
- The global electricity transmission sector has expanded significantly, with the market growing at a CAGR of 8% from $78,736 million in 2019 to $105,903 million in 2023. The sector is expected to continue its upward trajectory, reaching $143,467 million by 2028 at a projected CAGR of 6%.
- India's transmission line network has grown at a CAGR of 3%, reaching 4,87,587 circuit kilometers (CKm) as of July 2024, up from 4,13,407 CKm in 2019. The transmission capacity has also surged to 12,65,700 MVA. Government initiatives such as the NERPSIP and infrastructure projects in Arunachal Pradesh and Sikkim are driving further expansion.
Quality Power IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- A portion of the funds will be used to complete the purchase of Mehru Electrical and Mechanical Engineers Private Limited, strengthening business capabilities.
- Capital will support the purchase of advanced equipment to enhance manufacturing efficiency and production capacity.
- Funds will be allocated for future acquisitions and business growth initiatives, supporting long-term expansion plans.
- The remaining funds will be used for general corporate purposes.
About Quality Power Electrical Equipments Limited
Quality Power Electrical Equipments Limited is an Indian company serving global clients with high-voltage electrical equipment and power solutions. It specialises in critical energy transition equipment, supporting power generation, transmission, distribution, and automation. The company also provides advanced solutions for emerging applications, including large-scale renewable energy projects.
Its manufacturing facilities adhere to global quality standards, catering to Fortune 500 clients. The Test & Research Lab in Sangli is NABL-accredited, ensuring compliance with Indian and international standards for systems up to 765kV. Quality Power Electrical Equipments Limited is among the few global manufacturers of high-voltage equipment for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS), crucial for renewable energy integration into traditional grids.
With over two decades of expertise, the company offers a diverse range of products, including transformers, reactors, harmonic filters, and reactive power compensation systems. Its advanced grid interconnection solutions, such as STATCOM and static var compensators (SVC), ensure grid stability. The adoption of HVDC and STATCOM technologies plays a significant role in enhancing power transfer efficiency and integrating renewable energy sources.
Its manufacturing operations are based in Sangli, Maharashtra, and Aluva, Kerala, with a global presence strengthened by a majority stake in Turkey-based Endoks Enerji. International sales form a significant portion of the company’s revenue, reinforcing its role as a key player in the energy transition sector. Recognised as a ‘One Star Export House,’ it remains committed to sustainability and modernising power infrastructure.
How To Check the Allotment Status of Quality Power IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for the Quality Power IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Quality Power IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Quality Power IPO
Registered office: Plot No. L-61, M.I.D.C Kupwad Block, Sangli – 416 436 Maharashtra, India
Phone: + 91 233 264 5432
E-mail: investorgrievance@qualitypower.co.in
Quality Power IPO Category Reservation
|
Investor Category |
Shares Offered |
Maximum Allottees |
|
Anchor Investor Shares Offered |
90,92,070 (45%) |
NA |
|
QIB Shares Offered |
60,61,380 (30%) |
NA |
|
NII (HNI) Shares Offered |
30,30,690 (15%) |
|
|
bNII > ₹10L |
20,20,460 (10%) |
4,090 |
|
sNII < ₹10L |
10,10,230 (5%) |
2,045 |
|
Retail Shares Offered |
20,20,460 (10%) |
77,710 |
|
Total Shares Offered |
2,02,04,600 (100%) |
Quality Power IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
26 |
₹11,050 |
|
Retail (Max) |
18 |
468 |
₹1,98,900 |
|
S-HNI (Min) |
19 |
494 |
₹2,09,950 |
|
S-HNI (Max) |
90 |
2,340 |
₹9,94,500 |
|
B-HNI (Min) |
91 |
2,366 |
₹10,05,550 |
Quality Power IPO Anchor Investors Details
|
Bid Date |
February 13, 2025 |
|
Shares Offered |
90,92,070 |
|
Anchor Portion Size (In ₹ Cr.) |
386.41 |
|
Anchor lock-in period end date for 50% shares (30 Days) |
March 21, 2025 |
|
Anchor lock-in period end date for remaining shares (90 Days) |
May 20, 2025 |
Quality Power IPO Promoter Holding
Thalavaidurai Pandyan, Chitra Pandyan, Bharanidharan Pandyan and Pandyan Family Trust are the promoters of the company.
|
Share Holding Pre-Issue |
100.00% |
|
Share Holding Post Issue |
73.91% |
Key Performance Indicators for Quality Power IPO
As of March 31, 2024, the market capitalisation of Quality Power's IPO is ₹3291.38 crore. Here are the KPIs of Quality Power:
|
KPI |
Value |
|
RoE (%) |
29.15 |
|
RoCE (%) |
19.20 |
|
Debt/Equity |
0.20 |
|
PAT Margin |
16.74 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
7.69 |
12.93 |
|
P/E (x) |
55.28 |
32.86 |
Note: Pre-IPO EPS is based on the pre-issue shareholding as per the RHP and earnings for FY ending March 31, 2024. Post-IPO EPS is calculated using post-issue shareholding and annualised earnings as of September 30, 2024, as stated in the RHP.
Quality Power IPO Prospectus
Quality Power IPO Registrar and Lead Managers
Quality Power IPO Lead Managers
- Pantomath Capital Advisors Pvt Ltd
Registrar for Quality Power IPO
Link Intime India Private Ltd
- Contact Number:+91-22-4918 6270
- Email Address: qualitypower.ipo@linkintime.co.in
Quality Power IPO Registrar
Financial Performance of Quality Power Electrical Equipments Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ million) | 3,005.97 | 2,532.50 |
| Profit After Tax (PAT) (in ₹ million) | 554.74 | 398.92 |
| EPS (Earnings per Share in ₹) | 5.19 | 2.86 |
| Total Borrowings (in ₹ million) | 382.79 | 106.07 |
| Return on equity (%) | 29.15 | 22.71 |
| Return on capital employed (%) | 19.20 | 22.32 |
| EBITDA (in ₹ million) | 381.09 | 323.44 |
| Debt-Equity Ratio (x) | 0.20 | 0.06 |
Know before investing
Strengths
8Quality Power Electrical Equipments Limited benefits from the global shift to renewable energy.
The company specialises in high-voltage electrical solutions for energy transition.
It supplies critical HVDC and FACTS equipment across 100 countries.
A diversified customer base spans industries like automobiles, renewables, and steel.
Strategic acquisitions have strengthened its market position and growth.
Strong R&D capabilities drive innovation in energy transition solutions.
An experienced leadership team ensures sustainable business expansion.
Expanding manufacturing facilities in Maharashtra and Kerala boosts production capacity.
Risks
8Over 74% of revenue comes from international markets, exposing risk.
Expanding into new regions may lead to financial and operational losses.
Business relies heavily on HVDC and FACTS markets, affected by external factors.
Operational disruptions in 7 facilities could impact financial performance.
Supply chain delays or raw material cost fluctuations may hurt profits.
Foreign currency fluctuations could negatively affect international sales and margins.
Dependence on top 10 customers for 52.66% of revenue poses risk.
Quality control failures or product defects could lead to major losses.
Quality Power Electrical Equipments Limited Peer Comparison
| Company Name | EPS (₹) | RoNW (%) | NAV (₹ per share) | Profit After Tax (₹ million) |
|---|---|---|---|---|
| Quality Power Electrical Equipments Ltd | 5.19 | 29.15 | 26.38 | 554.74 |
| Transformers & Rectifiers (India) Ltd | 3.24 | 8.35 | 39.49 | 470.05 |
| Hitachi Energy India Ltd | 38.64 | 12.04 | 320.86 | 1,637.80 |
| GE Vernova T&D India Ltd | 7.07 | 14.57 | 48.54 | 1,810.50 |
