Table of Contents
Introduction – Quality Power Electrical IPO
To collect ₹858.70 crore, Quality Power Electrical Equipments Limited is starting its Initial Public Offering (IPO). The IPO consists of an offer for sale (OFS) of 1.49 crore equity shares, totaling ₹633.70 crore, and a fresh issue of 52.94 lakh equity shares, worth ₹225 crore.
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Important Information:
- Share Price Range: ₹401 to ₹425;
- Lot Size: 26
- Period of Subscription: February 14–18, 2025
- Date of Allotment: February 19, 2025
- Date of Listing: February 21, 2025
- BSE and NSE are the listing exchanges.
Company Background
Quality Power (est. 2001) specializes in high-voltage electrical equipment for automation, transmission, distribution, and power generation. Led by Managing Director Mr. Pandyan Thalavaidurai, the company provides solutions for renewable energy and grid connectivity. Its product range includes transformers, reactors, line traps, instrument transformers, capacitor banks, harmonic filters, reactive power compensation systems, and FACTS/HVDC solutions like STATCOM and SVC systems.
IPO Details
| IPO Open Date: | Ferbruary 14, 2025 |
| IPO Close Date: | Ferbruary 18, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹401 to ₹425 Per Share |
| Issue Size: | Approx ₹858.70 Crores |
| Issue Type: | Book Built Issue |
| IPO Listing: | BSE NSE |
| Lot Size: | Minimum of 26 shares |
Objectives of the IPO
For Quality Power Electrical Equipments Limited, the IPO’s goals are:
- Acquisition of Mehru Electrical and Mechanical Engineers Pvt Ltd – Quality Power may be able to increase its market presence and capabilities by using a portion of the funds to buy Mehru Electrical and Mechanical Engineers Pvt Ltd.
- Capital Expenditure for Plant & Machinery – To increase production capacity, funds will be set aside for the purchase of new plant and machinery.
- General Corporate Purposes The remainder will be utilized for business expansion, working capital, debt repayment, and other operational needs 3. General Corporate Purposes
Quality Power’s manufacturing capabilities, market reach, and long-term expansion are the objectives of the IPO.
Financial Performance
| Year | Revenue | Profit |
| 2022 | 182.64 Crores | 42.23 Crores |
| 2023 | 253.25 Crores | 39.89 Crores |
| 2024 | 300.60 Crores | 55.47 Crores |
Strengths and Opportunities
- Certifications: ISO 9001:2015 (Quality), ISO 14001:2015 (Environmental), ISO 45001:2015 (Safety), and ISO 17025:2017 (Testing & Research Lab accredited by NABL).
- Sustainability Focus: Supports decarbonization and green energy with technologies like HVDC and STATCOM for renewable energy integration.
- Diverse Customer Base: As of September 30, 2024, it had 143 customers, including Fortune 500 companies from sectors like power, renewable energy, automotive, oil & gas, and steel.
- Strategic Acquisitions: Acquired Endoks (Turkey), S&S Transformers (Kerala), Electrical Power Equipment Company (Bengaluru), and key assets from Toshiba (Telangana, 2022).
- Revenue Growth: Increased from ₹182.64 crore (FY22) to ₹300.60 crore (FY24).
Risks and Challenges
- Challenges Faced by Quality Power:
- High International Dependence: A major share of revenue (75-80%) comes from international markets, making the company vulnerable to regulatory and economic changes.
- Market Reliance: Business depends on HVDC and FACTS markets, which are affected by economic, social, and regulatory factors.
- Customer Concentration Risk: Top 10 customers contribute over 50% of revenue, so losing key clients could impact finances.
- Leadership Dependence: Promoters and directors (Thalavaidurai Pandyan, Chitra Pandyan, Bharanidharan Pandyan) are crucial; their exit could disrupt operations.
- Financial Liabilities: As of September 30, 2024, contingent liabilities stood at ₹110.04 crore, and as of December 31, 2024, borrowings were ₹9.49 crore.
- Legal Risks: The company and its key personnel face ongoing legal proceedings, with potential negative consequences from adverse judgments.
Conclusion
In conclusion, while the company has shown growth and operates in a competitive market, potential investors are advised to conduct their own thorough research and due diligence before makin
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What is the issue size of Quality Power Electrical Equipments Ltd IPO?
The issue size of the Quality Power Electrical Equipments Ltd IPO is 8587000000.00.
What are the open and close dates of the Quality Power Electrical Equipments Ltd IPO?
Quality Power Electrical Equipments Ltd IPO will be open between 14 Feb ’25 and 18 Feb ’25.
What is the allotment date for the Quality Power Electrical Equipments Ltd IPO?
Quality Power Electrical Equipments Ltd IPO allotment date is 20 Feb ’25. For Quality Power Electrical Equipments Ltd IPO allotment status check, you can visit the website of the registrar of the IPO.
Who is the registrar of Quality Power Electrical Equipments Ltd IPO?
For Quality Power Electrical Equipments Ltd, the IPO registrar is LINK. You can check Quality Power Electrical Equipments Ltd IPO allotment status on the website of the registrar.
