Quality Power IPO Day 1: Mainboard issue booked 62%; check offer size, price band and other key details

The initial public offering of Quality Power Electrical Equiptments Ltd witnessed a weak demand on the first day of bidding on Friday, February 14. The mainboard IPO was subscribed only 62%.

The energy transition equipment manufacturer aims to raise ₹859 crore through its maiden share sale. The public offer is open for bidding till February 18.

The IPO received bids for over 69.24 lakh shares against 1.11 crore shares on offer, amid poor demand across investor categories.

At the end of bidding at 5 pm on the first day, the Qualified Institutional Buyers (QIBs) applied for only 32.66 lakh shares against the allocation of 60.61 lakh shares. The QIBs segment was booked 54%. The Non-Institutional Investors (NIIs) subscribed 82% of over 30.3 lakh shares set aside for them. The NIIs applied for nearly 25 lakh shares. The retail quota of the IPO was booked 57% with bids for 11.58 lakh shares against 20.20 lakh shares on offer.

Prior to the IPO launch, the company raised ₹386.41 crore from anchor investors on February 13.

Here are the important details about the Quality Power IPO for the investors interested in bidding.

Quality Power IPO offer size, price band and other key details

Quality Power IPO consists of a fresh issue of 53 lakh shares, worth ₹225 crore, along with an offer-for-sale (OFS) of 1.49 crore shares, amounting to ₹633.7 crore. The IPO price band has been set between ₹401 and ₹425 per share.

The IPO lot size has been set at 26 shares, aggregating to a minimum investment of ₹11,050 at the upper price band for at least a single lot by retail investors.

Pantomath Capital Advisors is the book-running lead manager for the IPO, while Link Intime India serves as the issue registrar.

Quality Power IPO key dates

Following the subscription on February 18, the IPO share allotment status is scheduled to be finalised on February 19. The company will initiate refunds and transfer of shares to the Demat accounts on February 20.

Shares of Quality Power Electrical Equipments Ltd are scheduled to be listed on the BSE and the NSE on February 21.

Use of IPO proceeds

Quality Power Electrical Equipments plans to utilise the net proceeds from the IPO for the acquisition of Mehru Electrical and Mechanical Engineers Pvt Ltd. A portion of the funds will be used for capital expenditure for the purchase of plants and machinery. The remaining portion of the funds will be used for inorganic growth strategies and general corporate purposes.

About Quality Power Equipments

Founded in 2001, Quality Power Electrical Equipments specialises in energy transition equipment and power technologies. The company provides high-voltage electrical solutions for grid connectivity and energy transition, with products catering to the generation, transmission, distribution and automation sectors.

The company has demonstrated strong market performance, achieving a 28.3% revenue CAGR from FY22 to FY24, with export revenue contributing 80.7% in FY24. Additionally, it boasts high capital efficiency with a return on equity (ROE) of 29.2% and a return on capital employed (ROCE) of 19.2%.

Quality Power Equipments IPO: Key financials

The company reported revenue from operations at ₹155.73 crore for the six-month period ended September 30, 2024, in the current financial year. Its net profit stood at ₹50 crore for the period under review.

In FY24, Quality Power Electrical Equipments reported revenue from operations at ₹300.59 crore against ₹253.25 crore in FY23. The company’s net profit increased to ₹55.47 crore in FY24 compared to ₹39.89 crore in the preceding financial year.