Quality Power collects over ₹386 crore from anchor investors, IPO opens for subscription

Quality Power, an energy transmission equipment and technologies company, said it has mobilised more than ₹386 crore from anchor investors.

Those who were allotted shares in the anchor round included LIC Mutual Fund (MF), Bank of India MF, Maybank Securities, Bengal Finance & Investments, Bharat Value Fund, SBI General Insurance, India Inflection Opportunity Fund, Abans Finance and Kotak lconic Fund, among others, according to a circular uploaded on the BSE website.

Overall, a total of two domestic mutual funds participated through 11 schemes, collectively accounting for 20.70% of the anchor portion.

As per the circular, Quality Power has allocated 90.92 lakh shares to 21 entities at ₹425 per equity share, which is also the upper-end of the price band. This takes the transaction size to ₹386.41 crore.

The ₹859-crore initial public offering (IPO) of Quality Power opens for subscription on February 14 and will conclude on February 18. Shares are available in the price range of ₹401 to ₹425 apiece.

The company's valuation has been pegged at nearly ₹3,300 crore at the upper end of the price band.

The proposed IPO comprises a fresh issue of equity shares aggregating up to ₹225 crore and an offer-for-sale (OFS) of 1.5 crore shares valued at ₹634 crore at the upper end of the price band. This aggregates the total issue size to ₹859 crore.

As part of the OFS, promoter Chitra Pandyan will offload shares of the company.

The Pandyan family holds a 100% stake in Maharashtra-based Quality Power.

Proceeds from the fresh issue would be utilised for the acquisition of Mehru Electrical and Mechanical Engineers, funding capital expenditure requirements for purchasing plant and machinery.

Besides, the company will use the funds for inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

Incorporated in 2001, 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's revenue from operations for the financial year ended March 31, 2024 was at ₹300 crore and its profit stood at ₹55.5 crore.

Pantomath Capital Advisors is the sole book-running lead manager handling the public issue.

The company's shares will be listed on the BSE and NSE.