Quality Power Electrical Equipment plans IPO, files draft papers with SEBI

The production and distribution of premium electrical equipment for a range of industries is the area of expertise for Quality Power Electrical Equipments Private Limited. The company has become a well-known brand in the industry by concentrating on offering dependable and effective products. Quality Power Electrical Equipment Private Limited is a private, unlisted business that serves a select clientele while maintaining a degree of secrecy and exclusivity. A “company limited by shares” structure shields its shareholders’ assets from potential financial hardship by limiting their liability. Since its founding in 2001, Quality Power Electrical Equipments Private Limited has built a strong reputation for offering top-notch goods and exceptional customer support. The company’s commitment to quality and innovation allows it to continue expanding and growing. In India, Quality Power Electrical Equipments operates two manufacturing facilities. The company, which has its headquarters in Maharashtra, offers high-voltage electrical equipment as well as solutions for energy transition and electrical grid connectivity. It also offers specially designed machinery and solutions for new uses, like large-scale renewable energy. Companies like Transformers & Rectifiers India, Hitachi Energy India, and GE T&D India are competitors of Quality Power.

Quality Power Electrical Equipment draft IPO: 

Quality Power Electrical Equipment intends to use an IPO to raise capital. With market regulator SEBI, the company has submitted draft papers in this regard. This company offers solutions and equipment for high-voltage electrical applications. On September 16, the company submitted draft documents to SEBI, the market regulator. Under Quality Power Electrical Equipment’s IPO, new equity shares valued at Rs 225 crore will be distributed. In addition, promoter Chitra Pandian plans to sell 1.2 crore equity shares through an Offer for Sale (OFS).

Quality Power uses the funds to buy Mehru Electrical & Mechanical Engineers:

Quality Power Electrical Equipment is 100% owned by the Pandian family. To buy Mehru Electrical & Mechanical Engineers, the company will use Rs 117 crore from the proceeds of the initial public offering. In addition, Rs 26.8 crore will be used to buy machinery and plants. The remaining IPO funds will be allocated to general corporate purposes and inorganic growth. The exclusive merchant banker for this issue is Pantomath Capital Advisors.

Finance and Income for Quality Power Electrical Equipment in 2024:

According to Quality Power’s financials, as of the end of March 2024, the company had 210 clients, which included renewable energy companies, power utilities, and the power industry. The company’s overseas operations provide the lion’s share of its revenue. Quality Power saw a 19% increase in revenue from Rs 253.3 crore to Rs 300.6 crore in the fiscal year that ended in March 2024. In FY 2024, exports accounted for almost 76% of total revenue. The profit for FY 2023–24 was Rs 55.5 crore, a 39% increase over the prior year. Over the same period, EBITDA increased 17% to Rs 37.8 crore, but the margin decreased by 2 basis points to 12.6%.

Conclusion: The Pandian family currently owns a 100% share in Quality Power. They intend to use an initial public offering (IPO) to raise additional money. The majority of the proceeds will go toward expanding, followed by plant and machinery, and then Mehru Electrical & Mechanical Engineers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.