The Quality Power IPO is set to open for subscription on February 14, 2025, and will close on February 18, 2025. This Book Built Issue IPO aims to raise approximately ₹858.70 crores, consisting of a fresh issue of ₹225 crores and an offer for sale (OFS) of up to 1,49,10,500 equity shares. Each share has a face value of ₹10.
Quality Power IPO Price Band & Investor Quota
- The Quality Power IPO price band is set at ₹401 to ₹425 per share. Investor quotas are distributed as follows:
Retail Investors (RII): 10% - Qualified Institutional Buyers (QIB): 75%
- High Net Worth Individuals (HNI/NII): 15%
Quality Power IPO Listing & Allotment Date
- IPO Allotment Date: February 19, 2025
- Listing Date: February 21, 2025 on BSE & NSE
Quality Power IPO Financial Performance
The company’s financials indicate strong growth:
Revenue:
- 2024: ₹331.4 crores
- 2023: ₹273.55 crores
Profit After Tax (PAT):
- 2024: ₹55.47 crores
- 2023: ₹39.89 crores
Quality Power IPO Date & Price Band Details
| Category | Details |
|---|---|
| IPO Open Date: | February 14, 2025 |
| IPO Close Date: | February 18, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹401 to ₹425 Per Share |
| Issue Size: | Approx ₹858.70 Crores |
| Fresh Issue: | Approx ₹225 Crores |
| Offer for Sale: | Approx 1,49,10,500 Equity Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | BSE & NSE |
| Retail Quota: | Not more than 10% |
| QIB Quota: | Not more than 75% |
| NII Quota: | Not more than 15% |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Quality Power: Company Overview, Strengths, and Risks
Quality Power Electrical Equipments Limited is an Indian company specializing in high-voltage electrical equipment and power solutions. With a strong focus on the global energy transition, Quality Power plays a crucial role in enabling the integration of renewable energy sources into traditional power grids.
Overview:
- Focus: Critical energy transition equipment and power solutions.
- Expertise: High-voltage electrical equipment for HVDC and FACTS, essential for renewable energy integration.
- Products: Transformers, reactors, harmonic filters, reactive power compensation systems, and advanced grid interconnection solutions like STATCOM and SVC.
- Global Presence: Manufacturing facilities in India and Turkey, serving clients in over 100 countries.
- Customers: Diverse customer base including power utilities, renewable energy players, and industries like automobiles, oil and gas, and steel.
Strengths:
- Leader in Energy Transition: Quality Power is well-positioned to capitalize on the global shift towards renewable energy.
- Specialized Expertise: The company possesses deep knowledge and experience in high-voltage electrical solutions for energy transition.
- Global Reach: Serving clients worldwide, Quality Power has a strong international presence and established relationships.
- Diversified Customer Base: The company caters to a wide range of industries, reducing reliance on any single sector.
- Strategic Acquisitions: Acquisitions like Mehru Electrical and Mechanical Engineers Private Limited strengthen capabilities and market position.
Risks:
- High Dependence on International Markets: Over 74% of revenue comes from international markets, exposing the company to risks associated with global economic conditions and currency fluctuations.
- Competition: The industry is competitive, with key players like GE T&D, Siemens, and Hitachi Energy.
- Raw Material Price Fluctuations: Changes in raw material prices can impact profitability.
- Dependence on HVDC and FACTS: The company’s focus on HVDC and FACTS technologies makes it susceptible to changes in demand and technological advancements in these areas.
Quality Power IPO Market Lot
Quality Power IPO has set the minimum market lot at 26 shares, requiring an application amount of ₹11,050. Retail investors can apply for up to 18 lots, totaling 468 shares, with a maximum investment of ₹1,98,900.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 26 | ₹11,050 |
| Retail Maximum | 18 | 468 | ₹1,98,900 |
| S-HNI Minimum | 19 | 494 | ₹2,09,950 |
| B-HNI Minimum | 91 | 2,366 | ₹10,05,550 |
Quality Power IPO Allotment & Listing Dates
Quality Power IPO is set to open for subscription on February 14, 2025, and will close on February 18, 2025. Investors eagerly awaiting the Quality Power IPO allotment status can expect it to be finalized on February 19, 2025. The much-anticipated Quality Power IPO listing date is scheduled for February 21, 2025.
| Type | Date |
|---|---|
| IPO Open Date: | February 14, 2025 |
| IPO Close Date: | February 18, 2025 |
| Basis of Allotment: | February 19, 2025 |
| Refunds: | February 20, 2025 |
| Credit to Demat Account: | February 20, 2025 |
| IPO Listing Date: | February 21, 2025 |
Quality Power IPO: Promoters
The Quality Power IPO is backed by a strong promoter group, including Thalavaidurai Pandyan, Chitra Pandyan, Bharanidharan Pandyan, and the Pandyan Family Trust. Their leadership and expertise play a crucial role in the company’s growth and market positioning.
Quality Power IPO Company Financial Report
Quality Power IPO reported a revenue of ₹331.4 crores in 2024, reflecting strong growth compared to ₹273.55 crores in 2023. The company’s profit surged to ₹55.47 crores in 2024, a significant increase from ₹39.89 crores in 2023. This financial performance highlights Quality Power IPO’s robust earnings momentum and market strength.
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2022 | ₹211.73 | ₹162.86 | ₹42.23 | ₹252.86 |
| 2023 | ₹273.55 | ₹226.10 | ₹39.89 | ₹312.24 |
| 2024 | ₹331.4 | ₹268.41 | ₹55.47 | ₹358.88 |
| September 2024 | ₹182.72 | ₹127.64 | ₹50.08 | ₹399.64 |
Quality Power IPO Valuation – FY2024
| KPI | Values |
|---|---|
| ROE: | 29.15% |
| ROCE: | 19.20% |
| EBITDA Margin: | 12.68% |
| PAT Margin: | 16.74% |
| Debt to equity ratio: | 0.20 |
| Earning Per Share (EPS): | ₹5.19 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 29.15% |
| Net Asset Value (NAV): | ₹26.38 |
Quality Power Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| Transformers & Rectifiers Limited | 3.24 | 251.51 | 8.35 | 39.49 | 1,294.68 Cr. |
| Hitachi Energy India Ltd | 38.64 | 308.63 | 12.04 | 320.86 | 5,237.49 Cr. |
| GE T&D India Limited | 7.07 | 241.90 | 14.57 | 48.54 | 3,167.91 Cr. |
Quality Power IPO: Key Objectives of the Issue
The Quality Power IPO aims to raise funds for multiple strategic initiatives, ensuring business expansion and operational efficiency. The key objectives include:
- Acquisition of Mehru Electrical and Mechanical Engineers Pvt. Ltd.: The proceeds will be used to finalize the purchase of Mehru Electrical and Mechanical Engineers Private Limited, strengthening the company’s market position.
- Investment in Advanced Plant & Machinery: A portion of the funds will support capital expenditure for acquiring state-of-the-art plant and machinery, boosting production capacity and efficiency.
- Inorganic Growth & Strategic Expansion: The company plans to utilize funds for acquisitions and other strategic initiatives, focusing on expansion through mergers or partnerships.
- General Corporate Purposes: The IPO proceeds will also cover general corporate expenses, ensuring smooth business operations and financial stability.
This Quality Power IPO funding strategy is designed to accelerate growth, enhance production capabilities, and expand market reach.
Quality Power IPO Review
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Quality Power IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: qualitypower.ipo@linkintime.co.in
Website: https://linkintime.co.in/Initial_Offer/public-issues.html
Quality Power IPO Lead Managers aka Merchant Bankers
- Pantomath Capital Advisors Pvt Ltd
Quality Power Company Address
Quality Power Electrical Equipments Limited
Plot No. L-61,
M.I.D.C, Kupwad Block,
Sangli – 416 436
Phone: + 91 233 264 543
Email: investorgrievance@qualitypower.co.in
Website: http://www.qualitypower.com/
FAQs about Quality Power IPO
The Quality Power IPO will open for subscription on February 14, 2025, and close on February 18, 2025.
The Quality Power IPO price band is set between ₹401 to ₹425 per share.
The IPO aims to raise ₹858.70 crores, including a fresh issue of ₹225 crores and an offer for sale of up to 1,49,10,500 equity shares.
The IPO allotment date is scheduled for February 19, 2025.
The IPO is set to be listed on NSE & BSE on February 21, 2025.
Retail Investors (RII): 10%
Qualified Institutional Buyers (QIB): 75%
High Net Worth Individuals (HNI/NII): 15%
The minimum lot size is 26 shares, requiring an investment of ₹11,050.
The merchant banker managing the IPO is Pantomath Capital Advisors Pvt Ltd.
Revenue (2024): ₹331.4 crores
Profit After Tax (PAT 2024): ₹55.47 crores
Return on Equity (ROE): 29.15%
You can check the IPO allotment status on the Link Intime India Private Ltd website.
Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or other professional advice.
