Quality Power IPO: Key Details: Opening for subscription from February 14, 2025, to February 18, 2025, offering investors an exciting opportunity in the energy sector.. With the energy sector witnessing rapid transformation, investors seeking exposure to power infrastructure and renewable energy solutions may find this IPO a promising opportunity. Below are the key details about Quality Power Electrical Equipments Limited and its IPO offering.
Quality Power IPO Details
The Quality Power IPO is valued at ₹858.70 crores and consists of:
- Fresh issue of 0.53 crore shares, raising Rs.225.00 crores.
- Offer for sale (OFS) of 1.49 crore shares, amounting to Rs.633.70 crores.
The IPO price band is set between Rs.401 to Rs.425 per share, with a minimum lot size of 26 shares. Retail investors are required to invest at least Rs.10,426, but bidding at the cutoff price of Rs.11,050 is advisable due to potential oversubscription.
For institutional investors:
- Small Non-Institutional Investors need a minimum of 19 lots (494 shares), requiring Rs.2,09,950.
- Big Non-Institutional Investors must bid for at least 91 lots (2,366 shares), amounting to Rs.10,05,550.
The IPO allotment will be finalized on February 19, 2025, with a tentative listing date of February 21, 2025, on BSE and NSE.
About Quality Power Electrical Equipments Limited
Founded in 2001, Quality Power Electrical Equipments Limited is a key player in energy transition solutions and high-voltage power technologies. The company manufactures grid connectivity equipment, supporting the integration of renewable energy sources.
Its product portfolio includes components for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS), essential for efficient power transmission. With over 20 years of experience, the company produces reactors, transformers, converters, and interconnection solutions for domestic and global markets.
Quality Power operates manufacturing facilities in Sangli, Maharashtra, and Aluva, Kerala, and holds a 51% stake in Endoks, a Turkish company specializing in design, assembly, and project management.
Why Invest in the Quality Power IPO?
The Quality Power IPO offers a compelling investment opportunity due to its strong industry presence and growth potential. Here’s what makes the company stand out:
- Market Leadership: Strong presence in the energy transition and power infrastructure sector.
- Robust Financial Growth: Consistent revenue and profitability.
- Diverse Client Base: Long-term relationships with key industry players.
- Comprehensive Product Line: Catering to renewable energy and transmission sectors.
- Strategic Acquisitions: Expansion through mergers and acquisitions.
- Innovation & R&D: Strong focus on technology advancements.
- Experienced Leadership: A team with deep industry knowledge.
Objectives of the IPO
The company plans to utilize the funds raised through this IPO for:
- Acquiring Mehru Electrical & Mechanical Engineers Private Limited.
- Investing in advanced plant and machinery for production expansion.
- Strategic acquisitions and inorganic growth initiatives.
- General corporate expenses to strengthen business operations.
However, funds from the Offer for Sale (OFS) will not go to the company but to existing shareholders selling their stake.
Final Thoughts on the Quality Power IPO
With the rising demand for renewable energy and smart grid solutions, the Quality Power IPO is well-positioned to attract long-term investors. The company’s strong product portfolio, growing international footprint, and ambitious expansion plans make it a potentially rewarding investment in the power sector.
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