Quality Power shares jump 11% after acquiring majority stake in Mehru; check details

Shares of Quality Power Electrical Equipment surged 10.71% to an intraday high of ₹374.30 on the National Stock Exchange (NSE) on Friday, March 7. The steep rise in the company’s stock price comes a day after it acquired a majority stake in Mehru Electrical and Mechanical Engineers.

The newly listed company acquired a 51% stake in Mehru Electrical for ₹120 crore through a share purchase agreement.

As of 11:55 am, the scrip was trading at ₹362.20 per share price, up 7.13% on the NSE.

Quality Power informed the stock exchanges that it will hold 5.23 lakh (or 5,22,750) equity shares of Mehru of ₹10 each, which it will purchase at ₹2,295.55 per stock.

With this, Mehru is now Quality Power’s 51% subsidiary.

The acquisition represents a strategic milestone, aligning with Quality Power's long-term vision to expand its technological capabilities, USP, manufacturing scale and global market reach, it added.

Commenting on the acquisition, Bharanidharan Pandyan, Joint Managing and Whole-time Director at Quality Power, said: "This was one of the main objectives of the recently concluded IPO, and I am pleased to share that we have honoured our commitment with lightning speed. From a product portfolio standpoint, this strategic move reinforces Quality Power’s commitment to cutting-edge technology, precision engineering, and market leadership in high-voltage equipment.”

Pandyan highlighted that by integrating Mehru’s technology with Quality Power’s advanced manufacturing and global supply chain, they are creating a powerhouse of innovation, reliability, and customer-centric solutions.

“With this synergy, Quality Power is now better equipped than ever to serve utilities, industries, and infrastructure projects worldwide with superior, high-precision electrical equipment,” he further added.

Listed on the bourses on February 24, 2025, Quality Power is one of the leading manufacturers of high-voltage electrical equipment and solutions.