Quality Power IPO To Open For Subscription on February 14

Quality Power Electrical Equipment Limited IPO is set to launch from 14th to 18th February 2025. The company, engaged in energy transition equipment and power technologies, aims to raise ₹858.70 crore through a book-built issue. This includes a fresh issue of ₹225.00 crore and an offer for sale (OFS) of ₹633.70 crore. The IPO price band is set at ₹401–₹425 per share, with shares expected to list on the BSE and NSE on 21st February 2025.

IPO Details and Reservation

Quality Power IPO consists of 2,02,04,618 shares, out of which 52,94,118 shares are fresh issues and 1,49,10,500 shares are part of the OFS. The minimum lot size for retail investors is 26 shares, requiring an investment of ₹11,050. Small Non-Institutional Investors (sNII) must invest in at least 19 lots (494 shares), amounting to ₹2,09,950, while Big Non-Institutional Investors (bNII) need a minimum of 91 lots (2,366 shares), amounting to ₹10,05,550.

The IPO follows a reservation structure where Qualified Institutional Buyers (QIBs) are allotted at least 75% of the net offer, Non-Institutional Investors (NIIs) at least 15%, and retail investors at least 10%. Pantomath Capital Advisors Pvt Ltd is the book-running lead manager, and Link Intime India Private Ltd is the registrar.

The timeline includes allotment finalisation on 19th February 2025, refund initiation and credit of shares to demat accounts on 20th February 2025, and listing on 21st February 2025. Investors must confirm their UPI mandate by 5 PM on 18th February 2025.

Company Background and Fund Utilisation

Established in 2001, Quality Power Electrical Equipments Limited specialises in high-voltage electrical equipment and solutions for grid connectivity and energy transition. Its product portfolio includes reactors, transformers, converters, and grid interconnection solutions for power generation, transmission, and distribution. The company also provides Power Quality Systems such as Static VAR compensators, STATCOMs, harmonic filters, capacitor banks, and shunt reactors.

With manufacturing facilities in Sangli, Maharashtra, and Aluva, Kerala, the company also holds a 51% stake in Endoks, a Turkey-based subsidiary. As of March 2024, it serves 210 customers, including power utilities, industries, and renewable energy entities, employing 163 full-time employees and 372 contractual workers.

The net proceeds from the fresh issue will be used for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited, funding capital expenditure for plant and machinery, supporting inorganic growth through strategic acquisitions, and general corporate purposes. Proceeds from the OFS will not be received by the company.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.