Quality Power Electrical Equipments Limited to Launch IPO on February 14, 2025

Varahi media.com online news,National, February 12, 2025: Quality Power Electrical Equipments Limited (QPEEL) is set to launch its Initial Public Offering (IPO) on Friday, February 14, 2025, with the bidding process open until Tuesday, February 18, 2025. The Anchor Investor Bid/Offer Period will take place on Thursday, February 13, 2025.

• The IPO consists of a fresh issue of equity shares worth ₹2,250 million, alongside an offer for sale (OFS) of 14,910,500 equity shares by promoter Chitra Pandyan.
• The price band for the issue has been set at ₹401 to ₹425 per share.
• Investors can place bids for a minimum lot of 26 shares, with additional bids in multiples of 26 shares.

The company plans to utilize the net proceeds for:

1. Acquisition of Mehru Electrical and Mechanical Engineers Pvt. Ltd. – ₹1,170 million.
2. Capital expenditure for purchasing plant and machinery – ₹272.17 million.
3. Funding future acquisitions and strategic initiatives.
4. General corporate purposes.

Quality Power Electrical Equipments Ltd. is a leading Indian manufacturer specializing in high-voltage electrical equipment and power solutions for grid connectivity and energy transition. The company provides cutting-edge technology for power generation, transmission, and distribution, as well as customized solutions for large-scale renewable energy applications.

As per the CARE Report, QPEEL is among the select global manufacturers of High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS), which play a crucial role in integrating renewable energy into traditional power grids. HVDC technology enhances efficient long-distance power transfer while reducing energy losses, making it essential for renewable energy sources such as offshore wind farms and remote solar plants.

• The company operates from two manufacturing facilities in Sangli, Maharashtra, and Aluva, Kerala.
• In 2011, QPEEL expanded globally by acquiring a 51% stake in Endoks Enerji Anonim Şirketi (Turkey), a company specializing in smart grid technologies and power quality management.

Financial Performance

• FY 2023-24 Revenue: ₹3,005.97 million
• Profit After Tax (PAT) Margin: 16.74%
• Return on Equity (ROE): 29.15%
• International revenue accounts for over 75% of total operations.

According to the proforma consolidated financials, for FY 2024, QPEEL reported:

• Revenue: ₹5,190.49 million
• Profit after Tax: ₹656.96 million
  For the six-month period ending September 30, 2024:
• Revenue: ₹2,672.24 million
• Profit after Tax: ₹537.88 million

Market Position & Peers

QPEEL competes with major industry players, including Hitachi Energy India Limited, GE Vernova T&D India Limited, and Transformers & Rectifiers (India) Limited. As of March 31, 2024, the company had 210 customers, including power utilities, industrial clients, and renewable energy firms.

IPO Process & Lead Manager

The IPO is being conducted through the Book Building Process, in accordance with SEBI regulations.

• 75% of the issue is reserved for Qualified Institutional Buyers (QIBs), with up to 60% of this portion allocated to Anchor Investors.
• Pantomath Capital Advisors Private Limited is the Book Running Lead Manager (BRLM) for the offering.

This IPO marks a significant milestone for Quality Power Electrical Equipments Ltd., as it continues to expand its global footprint and drive advancements in energy transition technology.

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