Quality Power IPO Details 2025; Date, Price, Allotment Check

Indian IPO season has gotten off to a great start in 2025, with quite a few companies tapping into public markets for capital. Among the most awaited February IPOs are Quality Power Electrical Equipment, the key player in the energy transition, high-voltage electrical equipment, and power technology segments. The firm would seek to mop up Rs 858.70 crore through its public offering with which the shares are to open for subscription from February 14 to 18, 2025.

Quality Power Electrical Equipments Limited IPO

🗓️Date: 14 - 18 Feb,2025

🏷️Price Band: ₹401- ₹425

📦Market Lot:  26 Shares

💰Application Amount: ₹11,050

📏Size: ₹859 Cr Approx

👦Retail Portion: 10%

📃 Retail Form: 77,710

📄HNI Small Form: 2,045

📄HNI Big Form: 4,090

🏷️Face Value: ₹10

Quality Power IPO Price Band and Issue Structure

The IPO price band is in the range of ₹401- ₹425, with the anchor book allocation on Feb 13, 2025, said sources. This would be a mix of both:

Fresh Issue: Rs 225 crore for business expansion, debt repayment, and working capital needs

Offer for Sale (OFS): 1.49 crore equity shares aggregating to Rs 633.70 crore, allowing existing shareholders to partially exit by promoter Chitra Pandyan

About Quality Power Electrical Equipment

Quality Power Electrical Equipment is an Indian leading company in the sector of energy transition equipment, power distribution, and high-voltage electrical solutions. The company offers transformer designs, circuit breakers, switchgear, and other power transmission and grid connectivity products, thus serving the needs of the country as well as international markets.

Quality Power is an energy solutions company with a primary focus on renewable energy applications for large-scale solar farms, wind energy projects, and sustainable power grids. There are two big manufacturing units of the firm located at Sangli in Maharashtra and Aluva in Kerala. On March 31, 2024, the company boasted 210 customers, including major power utilities, industrial clients, and government agencies.

Financial Performance

Quality Power has demonstrated consistent financial growth over the past two years:

FY24: Net Profit of Rs. 55.47 Cr with revenue of Rs. 301 Cr. 18.8% YoY growth in its revenue.

FY23: Net Profit: Rs. 39.89 Cr. revenue of Rs 253.25 Cr.

As a positive to the company, one would surely appreciate its prominent international presence; it is derived from international businesses, and quite a percentage contributes to revenue while serving clients such as Europe and North America plus the Middle East.

FY24: International business revenue would constitute 76% of the revenue, which is reflective of the export-driven growth strategy.

FY23: 73% of revenue was from international business

This international exposure sets the company to grow continuously in the changing renewable energy and power infrastructure landscape.

IPO Market Outlook

Activity has been high in the Indian IPO market, and 2024 has been the best year yet. 91 companies have managed to raise a cumulative Rs 1.6 lakh crore; the previous high was Rs 1.19 lakh crore raised in 2021. Half a dozen have already been launched in 2025 to raise nearly Rs 5,000 crore.

Power sector IPOs have been getting significant attention by India focusing on its green energy expansions, smart grids, and general power sector upgrades. Quality Power Electrical Equipment shall be attracting this set of institutions, retail buyers, and fund investors searching to get an allocation into the large high-growth energy transition space as Pantomath Capital emerges as the lead merchant banker from the IPOs.

Risks and Investment Considerations

Prospective investors need to consider the following factors before investing in the IPO:

The business is heavily exposed to the volatility of international market conditions due to 76% of revenues through exports.

Intense Competition with ABB, Siemens, Schneider Electric, etc. Other manufacturers of electrical equipment worldwide

Hence, variations in the copper, aluminum, and insulation materials affect production costs.

Regulatory Risks: Exposed to changes in government policies regarding energy and infrastructure projects.

Conclusion

Quality Power IPO would offer investors the chance to tap into the increasing energy transition sector, power transmission infrastructure, and electrical equipment manufacturing industry. It is a solidly established company with a great international presence and emphasis on renewable energy solutions that could propel future growth. Therefore, for an investor seeking investment opportunities in India's expanding energy infrastructure, smart grids, and renewable power sector, this IPO might be attractive.

Would you consider investing in the Quality Power IPO? Let us know your thoughts in the comments below!

FAQs Quality Power Electrical Equipments Limited IPO