Initial public offering (IPO) of Quality Power Electrical Equipments providing high voltage electrical equipment and solutions will open on 14 February. The company is planning to raise Rs 900 crore. The potential price band may be Rs 400-430 per share, however, official confirmation will be done soon. The bidding process for anchor investors will begin on 13 February, and the issue will close on 18 February.
Background and business of the company
Quality Power Electrical Equipments are an established name in the field of high-voltage electrical equipment and solutions. The company provides the necessary solutions for electrical grid connectivity and energy transition. Its products and services specialize in the following fields, especially:
- Critical Energy Transition Equipment
- Power technology solutions
- Large-Scal Renewable Energy Systems
- Power Generation, Transmission, Distribution and Automation
The company’s products and services are used by customers around the world, especially in areas where high-voltage electrical systems are required.
Major points of IPO
| Description | Description |
|---|---|
| IPO opening date | 14 February 2024 |
| IPO closure date | 18 February 2024 |
| Anchor investor bid date | 13 February 2024 |
| Price band (potential) | ₹ 400- ₹ 430 per share |
| Total fund raising goal | ₹ 900 Crore |
| New equity share issue | ₹ 225 Crore |
| Offer for sale (ofs) | 1.49 crore shares |
| Allotment final date | 20 February 2024 |
| Share listing date | 24 February 2024 |
| Listing exchange | Bse, nse |
Listing and allotment date of shares
The allotment of shares will be finalized on 20 February after the IPO is closed. Subsequently, on 24 February 2024, there will be a listing of company shares on BSE and NSE.
Who can invest in IPO?
The company has reserved stake in the following way for various investors in IPO:
- 75% shares for qualified institutional buyers (QIBS)
- 15% shares for non-institutional investors (NIIS)
- 10% share for retail investors
The IPO is being managed by Pantomath Capital Advisors, and its registrar is Link Intime India.
Promoters and manufacturing units of the company
Promoters of Quality Power Electrical Equipments:
- Thalwaidurai Pandian
- Chitra Pandian
- Bharanidharan Pandian
- Pandian Family Trust
The company’s manufacturing operations run at two places in India:
- Sangli, Maharashtra
- Aluva, Kerala
Quality Power Electrical Equipments competitive
The following companies are the major competitors of Quality Power Electrical Equipments in the Indian market:
- Transformers and Rectifiers (India)
- Hitachi Energy India
- Ge Vernova T & D India
How will the money raised from IPO use?
The company plans to use the capital received from its IPO for the following tasks:
- ₹ 117 crore for the purchase of Mehru Electrical & Mechanical Engineers
- ₹ 27.2 crore for purchase of plant and machinery
- Balance for inorganic growth and other strategic initiatives
- Investment for general corporate requirements
Financial status of Quality Power Electrical Equipments
If we look at the company’s recent financial performance, there has been a good increase in both revenue and profit:
| FY | Total revenue (in ₹ crore) | Pure profits (in ₹ crore) | Borrowing (₹ crore) |
|---|---|---|---|
| FY 2023 | ₹ 273.55 Crore | ₹ 39.89 Crore | ₹ 10.61 Crore |
| FY 2024 | ₹ 331.4 Crore | ₹ 55.47 Crore | ₹ 38.28 Crore |
Is Quality Power Electrical Equipments good for IPO investment?
Given the company’s financial data and its status in the industry, it can be attractive to IPO investors. Some main points:
Strong Financial Performance: Increase in revenue and profits compared to last year.
Smart Industry Placement: The company’s presence in important areas such as energy transition and grid connectivity.
High Growth Potential: Possibility of expansion in electrical and renewable energy sectors.
However, investors should take decisions keeping in mind the market risk and sector-specific challenges.
