Quality Power IPO: Check strengths, risks, price band, lot size, key dates and more

Quality Power IPO: The initial public offering of energy transmission equipment and power technologies firm Quality Power will open for public subscription on Friday, February 14. The price band has been fixed at ₹401 to ₹425 per share.

The ₹858.70 crore initial share sale consists of a fresh issuance of shares worth ₹225 crore and an offer-for-sale (OFS) valued at ₹634 crore.

The money generated will be used to acquire Mehru Electrical and Mechanical Engineers Pvt Ltd, fund capital expenditures for buying plant and machinery, grow inorganically, and for corporate general purposes.

Quality Power IPO: Lot size

Investors can apply for a minimum of one lot consisting of 26 equity shares. The minimum investment requirement is ₹11,050.

The company has reserved 75% of the net offer for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 10% for retail investors.

Pantomath Capital Advisors Pvt Ltd is the book-running lead manager for the issue, while Link Intime India Pvt Ltd is the registrar.

Quality Power IPO: Key dates

• Anchor investor bidding: February 13
• IPO bidding period: February 14 to February 18
• Basis of Allotment: February 19
• Refund initiation: February 20
• Credit of shares to Demat: February 20
• Listing date: February 21

Quality Power provides high-voltage electrical equipment for electrical grid connectivity and energy transition. It specialises in the provision of power products and solutions across sectors such as power generation, transmission, distribution, and automation.

It is among the leading global manufacturers of critical high-voltage equipment for flexible AC transmission systems, and high-voltage direct current, which are vital for transitioning energy from renewable sources to traditional power grids.

Quality Power offers equipment and solutions for emerging applications such as large-scale renewables.

For the financial year ended March 2024, the company's revenue from operations was ₹300 crore, and its profit after tax (PAT) was ₹55.5 crore.

Quality Power IPO strengths

• The company caters to diverse industry segments and will benefit from the global shift toward the adoption of renewable energy.
• It has a diversified customer base across industries like automobiles, cement, oil and gas industries, chemical, renewables, steel and metal industries, traction and locomotives and power utilities.
• The company has a comprehensive product portfolio in power technologies and energy transition equipment sector.
• It has demonstrated consistent financial performance for 6M FY25 and each of the last three fiscals.

Quality Power IPO risks

• Quality Power derives the majority of its revenue from international markets, which contributed 74% of its total revenue in the last three fiscal years.
• Any breakdown or shutdown of its operating facilities can affect business, financial condition and cash flow.
• The firm consistently deals in foreign currency. Its inability to handle foreign currency fluctuation risks can affect customers' sales.
• The top 10 customers contribute 52.66% of the total revenue for each of the last three fiscals.