Quality Power Electrical Equipments Ltd IPO

About Quality Power Electrical Equipment IPO

Quality Power Electrical Equipment IPO is an IPO of ₹858.70 crores. It consists of a fresh issue of ₹225 crores and an offer for sale of 1.49 crore shares. The IPO starts on Feb 14, 2025 and ends on Feb 18, 2025. The shares will be credited to the demat account on Feb 21, 2025. The shares will be allotted on Feb 20, 2025 and the refunds will be initiated on Feb 21, 2025.

Objective of Quality Power Electrical Equipment IPO

Payment of the purchase consideration for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited Funding capital expenditure requirements of the company for purchase plant and machinery Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes

Industry Outlook

The power quality products market in India has witnessed significant growth in recent years, driven by ambitious targets for renewable energy deployment, including solar, wind, and hydroelectric power. The Indian power quality products market grew at a CAGR of 7% in the period from 2019-2023.

The Indian power quality products market is expected to grow at a CAGR of 9% in the period from 2023-2028. The industry is expected to grow from USD 79.8 crores in 2023 to USD 12.2 crores in 2028. In 2028, capacitor banks will contribute around 28.7% of the market share followed by harmonic filters, static var compensator (SVC), static synchronous (STATCOM), and others, at 19.1%, 13.3%, 5.4%, and 33.5%, respectively.

Company Information

Quality Power Electrical Equipment Limited is an Indian player serving global clients in critical energy transition equipment and power technologies. They provide high voltage electrical equipment and solutions for electrical grid connectivity and energy transition. They are a technology-driven company specializing in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors. Additionally, they offer equipment and solutions tailored for emerging applications such as large-scale renewables. (Source: Care Report)

Risks of Quality Power Electrical Equipment IPO

• The company is dependent on the performance of the market for High-Voltage Direct Current (“HVDC”) and Flexible Alternating Current Transmission Systems (“FACTS”), which in turn are dependent on a range of social, economic and regulatory factors beyond the company’s control. Any adverse trend in such markets could have a material adverse effect on our business, financial condition, results of operations and cash flows.

• Any disruption, breakdown or shutdown of their operating facilities may have a material adverse effect on their business, financial condition, results of operations and cash flows.

• Any shortages, delay or disruption in the supply of the raw materials they use in their operating process may have a material adverse effect on their business, financial condition, results of operations and cash flows. Further, the costs of the raw materials that they use in their operating process are subject to volatility. Increases or fluctuations in raw material prices, may have a material adverse effect on their business, financial condition, results of operations and cash flows.

Anchor Investor Information

The anchor bidding will take place one day prior to the actual IPO opening, which is Feb 13, 2025.

IPO Registrar and Book Running Lead Managers

The book running lead manager for the IPO is Pantomath Capital Advisors Private Limited

The registrar for the IPO is MUFG Intime India Private Limited

Business Model

The company specializes in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors. They manufacture reactors, transformers, line traps, instrument transformers, capacitor banks, converters, harmonic filters, and reactive power compensation systems.

Additionally, they offer equipment and solutions tailored for emerging applications such as large-scale renewables. (Source: Care Report).

They are among the few global manufacturers of critical high voltage equipment for High Voltage Direct Current ("HVDC”) and Flexible AC Transmission Systems (“FACTS”) networks.

Company Growth Trajectory

The company’s revenue from profits has grown from ₹1,82.638 crores in FY22 to ₹300.597 crores in FY24. Further, the profit after tax has grown from ₹42.227 crores in FY22 to ₹55.474 crores in FY24.

Company Market Position

They are among the few global manufacturers of critical high voltage equipment for High Voltage Direct Current ("HVDC”) and Flexible AC Transmission Systems (“FACTS”) networks. These equipment and networks form key components for energy transition from renewable sources to traditional power grids.

The customers they cater to run their operations across multiple key areas, including (i) power transmission, providing effective transfer of electricity over distances, (ii) power distribution, ensuring the delivery of electricity to end users, and (iii) power automation, integrating advanced technologies for efficient power management.

How To Check Allotment Status of Quality Power Electrical Equipment IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down, which is Quality Power Electrical Equipment in this case
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of MUFG Intime India Private Limited :

• Visit the website of MUFG Intime India Private Limited
• Choose ‘Public Issues’ from Investor Services dropdown
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How To Apply for Quality Power Electrical Equipment IPO?

To apply for Quality Power Electrical Equipment IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.