Quality Power IPO: Energy equipment major mobilises ₹386 crore from anchor investors ahead of subscription | Stock Market News

Quality Power IPO: Quality Power Electrical Equipments Limited mobilised RS 386.41 crore from anchor investors ahead of its IPO subscription opening for bidding. The critical high-voltage equipment manufacturer’s mainboard initial public offering (IPO) will open for its three-day subscription period for all D-Street investor groups on Friday, February 14, and close on Tuesday, February 18, 2025.

The Maharashtra-based energy transition equipment and power major raised the amount from 21 anchor investors before its IPO subscription. It finalised the allocation of 90,92,070 equity shares to anchor investors at a price of ₹425 per equity share. The marquee investors participating in the anchor round included LIC Mutual Fund, Bank Of India Mutual Fund, Kotak Iconic Fund, Benani Capital Scheme, SBI General Insurance Company, among several others.

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Quality Power IPO Details

Quality Power fixed a price band of ₹401 to ₹425 per share for its ₹859-crore IPO. At the upper end of the price band, the company’s valuation is pegged at nearly ₹3,300 crore. The IPO comprises a fresh issue of equity shares aggregating up to ₹225 crore and an offer-for-sale (OFS) of 1.5 crore equity shares valued at ₹634 crore at the upper end of the price band.  

The OFS portion of the book-built public issue will include 1.2 crore equity shares offered by promoter Chitra Pandyan. The lot size for Quality Power IPO lot size is 26 equity shares and in multiples of 26 equity shares thereafter.

This aggregates the issue size to ₹859 crore. Promoter Chitra Pandyan will offload company shares as part of the OFS. The Pandyan family holds a 100 per cent stake in the company. Thalavaidurai Pandyan, Chitra Pandyan, Bharanidharan Pandyan and Pandyan Family Trust are the promoters.

Proceeds from the fresh issue would be used to acquire Mehru Electrical and Mechanical Engineers and fund capital expenditure requirements for purchasing plant and machinery. The company will also use the funds for inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes.

The lot size for Quality Power IPO lot size is 26 equity shares and in multiples of 26 equity shares thereafter. In the IPO, Quality Power Electrical Equipments Ltd has reserved 75 per cent of the shares in the public issue for qualified institutional buyers (QIB), 15 per cent for non-institutional Institutional Investors (NII), and 10 per cent of the offer is reserved for retail investors.

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Tentatively, Quality Power IPO’s basis of allotment of shares will be finalised on Wednesday, February 19. The company will initiate refunds on February 20. The shares will be credited to the Demat account of allottees on the same day following the refund. Quality Power’s share price will likely be listed on BSE and NSE on Friday, February 21. Pantomath Capital Advisors Pvt Ltd is the sole book-running lead manager, and Link Intime India is the IPO registrar. The company’s shares will be listed on BSE and NSE on February 24.

Quality Power Company Details

Quality Power is engaged in critical energy transition equipment up to 765kv and power technologies and provides high-voltage electrical equipment and solutions for electrical grid connectivity and energy transition. The company specialises in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors.

According to a report by Care Ratings, Quality Power is among the few global manufacturers of critical high-voltage equipment for High Voltage Direct Current (HVDC) and flexible AC transmission systems networks.

These equipment and networks form critical components for the energy transition from renewable sources to traditional power grids. The company’s revenue from operations for the financial year ended March 31, 2024, was ₹300 crore, and its profit stood at ₹55.5 crore.

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Quality Power Electrical Equipment offers energy transition technology and electrical solutions. The firm focuses on power solutions across the generation, transmission, distribution, and automation fields, offering high-voltage electrical devices and services to enhance grid connectivity and facilitate energy transition.

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 listed peers are Transformers & Rectifiers (India) Ltd (with a P/E of 251.51), Hitachi Energy India Ltd (with a P/E of 308.63), and GE Vernova T&D India Ltd (with a P/E of 241.90).