Quality Power IPO: Price Band, Financials, Key Dates, GMP And More — All You Need To Know

Energy transmission equipment and power technologies company Quality Power Electrical Equipments Ltd.'s initial public offering is scheduled to open on Feb. 14.

The price band for the IPO has been set in the range of Rs 401 to Rs 425 per share. The market value at the upper end of the price band is Rs 3,300 crore, as per NDTV Profit's calculations. Bids can be made for a minimum of 26 shares, and then in multiples thereof.

⁠The offering comprises a fresh issue of equity shares aggregating up to Rs 225 crore and an offer-for-sale of 1.5 crore equity shares valued Rs 634 crore at the upper-end of the price band. This aggregates the issue size to Rs 859 crore.

The company filed its draft papers for the book built public issue in September last year.

Pantomath Capital Advisors Pvt. is the sole book running lead manager and Link Intime India is the registrar to the IPO.

The equity shares are proposed to be listed on both the BSE and National Stock Exchange. The company will use the proceeds from the offer for the acquisition of Mehru Electrical and Mechanical Engineers Pvt., funding capital expenditure requirements for purchasing plant and machinery. The company will use the funds for inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

• Issue opens: Feb. 14.

• Issue closes: Feb. 18.

• Issue price: Rs 401–425.

• Offer for sale: Rs 634 crore.

• Fresh issue: Rs 225 crore.

• Total issue size: Rs 859 crore.

• Lot size: Minimum 26 shares, and then in multiples thereof.

Quality Power is engaged in critical energy transition equipment up to 765kv and power technologies and provides high-voltage electrical equipment and solutions for electrical grid connectivity and energy transition.

The company specialises in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors.

Quality Power is among the few global manufacturers of critical high-voltage equipment for High Voltage Direct Current and flexible AC transmission systems networks.

These equipment and networks form critical components for energy transition from renewable sources to traditional power grids.

The company's revenue from operations for the financial year ended March 31, 2024 stood at Rs 331.4 crore and its profit stood at Rs 55.5 crore. As of September 2024, the company reported a revenue of Rs 182.72 crore and profit of Rs 50.08 crore.

• Of the majority of the company's revenue from operations, overseas operation contribute over 64% to its total revenue.

• The company is dependent on the performance of the market for High-Voltage Direct Current and Flexible Alternating Current Transmission Systems, which in turn is dependent on a range of social, economic and regulatory factors beyond the company's control.

• Any disruption, breakdown or shutdown of operating facilities may have a material adverse effect on business.

• Any shortages, delay or disruption in the supply of the raw materials may have a material adverse effect on business and financials.

• The company does not have long-term agreements with any customer.

• The top 10 customers contribute to more than 52% of its total revenue from operations.

The grey market premium of the Quality Power IPO is Rs 25 as of 1:33 p.m. on Feb. 13, according to InvestorGain. This implies shares of the company will likely list at Rs 450 apiece, indicating a 5.88% premium to the upper end of the price band.

It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.