Quality Power Electrical Equipment’s Limited, a prominent player in energy transmission equipment and power technologies, is set to launch its Initial Public Offering (IPO) on February 14, 2025. The IPO will remain open for subscription until February 18, 2025. The company aims to raise approximately ₹859 crore through this public issue.
IPO Structure and Pricing
The IPO comprises a fresh issue of equity shares aggregating up to ₹225 crore and an offer-for-sale (OFS) of 1.5 crore equity shares valued at ₹634 crore. The price band for the shares has been set between ₹401 and ₹425 per share, valuing the company at nearly ₹3,300 crore at the upper end of the price band.
The issue is structured with 75% reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 10% for retail investors. Investors can apply in lots, with each lot comprising a specific number of shares, though the exact lot size has not been specified in the available sources.
Quality Power IPO Timeline (Tentative Schedule)
Quality Power IPO opens on February 14, 2025, and closes on February 18, 2025.
| IPO Open Date | Fri, Feb 14, 2025 |
| IPO Close Date | Tue, Feb 18, 2025 |
| Tentative Allotment | Wed, Feb 19, 2025 |
| Initiation of Refunds | Thu, Feb 20, 2025 |
| Credit of Shares to Demat | Thu, Feb 20, 2025 |
| Tentative Listing Date | Fri, Feb 21, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on February 18, 2025 |
Quality Power IPO Lot Size
Investors can bid for a minimum of 26 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 26 | ₹11,050 |
| Retail (Max) | 18 | 468 | ₹1,98,900 |
| S-HNI (Min) | 19 | 494 | ₹2,09,950 |
| S-HNI (Max) | 90 | 2,340 | ₹9,94,500 |
| B-HNI (Min) | 91 | 2,366 | ₹10,05,550 |
Quality Power IPO GMP Live Rates day by day with Kostak rates
| Date | IPO GMP | GMP Trend | Kostak | Subject to |
| 14 February | ₹20 |  |
₹- | ₹- |
| 13 February | ₹30 | |
₹- | ₹- |
| 12 February | ₹35 |  |
₹- | ₹- |
| 11 February | ₹30 | |
₹- | ₹- |
| 10 February | ₹115 | |
₹- | ₹- |
| 8 February | ₹35 | |
₹- | ₹- |
Company Overview
Established in 2001, Quality Power specializes in high-voltage electrical equipment and solutions essential for electrical grid connectivity and energy transition. Their product portfolio includes reactors, transformers, converters, and grid interconnection solutions for power generation, transmission, and distribution. Additionally, the company offers 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, Quality Power serves over 210 customers across more than 100 countries, including power utilities, industries, and renewable energy entities. The company employs 163 full-time employees and 372 contractual workers as of March 2024.
Financial Performance
In the financial year ending March 31, 2024, Quality Power reported revenue from operations of ₹300 crore and a profit of ₹55.5 crore. The company has demonstrated consistent growth, with a Compound Annual Growth Rate (CAGR) of 28% over the FY22-24 period. Profit After Tax (PAT) increased from ₹42.2 crore in FY22 to ₹55.5 crore in FY24. Notably, the company maintains strong profitability metrics, with a PAT margin of 32.2% in the first half of FY25.
Utilization of IPO Proceeds
The net proceeds from the fresh issue are planned to be utilized for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited, funding capital expenditure for purchasing plant and machinery, supporting inorganic growth through strategic acquisitions, and general corporate purposes. Proceeds from the OFS will be received by the selling shareholders and not by the company.
Investment Considerations
Quality Power’s strong financial performance, strategic expansion plans, and significant global presence position it as a compelling investment opportunity. The company’s focus on high-voltage electrical solutions and its role in energy transition infrastructure underscore its growth potential. However, as with any investment, potential investors should conduct thorough due diligence and consider market conditions before making investment decisions.
The shares of Quality Power are expected to list on the BSE and NSE on February 24, 2025.
