The initial public offer (IPO) of Quality Power Electrical Equipments received 1,43,03,926 bids for shares as against 1,11,12,530 shares on offer, according to stock exchange data at 17:30 IST on Tuesday (18 February 2025). The issue was subscribed 1.29 times.
The issue opened for bidding on 14 February 2025 and it will close on 18 February 2025. The price band of the IPO was fixed between Rs 401 to 425 per share. An investor can bid for a minimum of 26 equity shares and in multiples thereof.
The issue comprises both an offer for sale (OFS) and a fresh issue of equity shares. The OFS comprises sales of 14.91 crore equity shares by Chitra Pandyan, one of its Promoters. The fresh issue comprises the issue of fresh equity shares, aggregating to Rs 225 crore.
Of the net proceeds from the fresh issue, approximately Rs 117 crore will be used for the purchase consideration related to the acquisition of Mehru Electrical and Mechanical Engineers; Rs 27.217 crore for funding capital expenditure (purchase of P&M); and the remaining balance will be allocated towards supporting inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes.
Ahead of the IPO, Quality Power Electrical Equipments on Thursday, 13 February 2025, raised Rs 386.41 crore from anchor investors. The board allotted 90.92 lakh shares at Rs 425 each to 21 anchor investors.
Quality Power Electrical Equipment (QPEEL) offers a range of technology-driven products, comprehensive system solutions, and professional services tailored for the power sector. It is among the few global manufacturers of critical high-voltage equipment for High Voltage Direct Current ("HVDC”) and Flexible AC Transmission Systems (“FACTS”) networks.
As of September 30, 2024, the company had 143 customers, including power utilities, power industries, and renewable energy entities. Revenue from international markets accounted for 80.68% in FY24 and 75.77% in FY25. Its manufacturing operations are located across two sites in India: Sangli, Maharashtra, and Aluva, Kerala. In 2011, the company acquired a 51% stake in Endoks Enerji Anonim Sirketi (“Endoks”), which has design, operation, assembly, project management, and delivery facilities in Ankara, Turkey, as part of its global expansion strategy. Following this acquisition, Endoks became an indirect subsidiary.
The firm reported a consolidated net profit of Rs 50.08 crore and sales of Rs 155.74 crore for the six months ended on 30 September 2024.