National February 13, 2025: Quality Power Electrical Equipments Limited (“QPEEL” or “The Company”) shall open its Bid/Offer in relation to its initial public offer of Equity Shares on Friday, February 14, 2025.
The Anchor Investor Bid/ Offer Period opens and closes on Thursday, February 13, 2025. The Bid/ Offer Period will close on Tuesday, February 18, 2025. (“Bid Details”)
The initial public offering comprises a fresh issue of Equity Shares (face value of ₹ 10 each) aggregating up to ₹2,250.00 million (the “Fresh Issue”) and an offer for sale of up to 14,910,500 Equity Shares by Chitra Pandyan (the “Promoter Selling Shareholder”) (“Total Offer Size”).
The price band for the Offer has been fixed at ₹401 to ₹425 per Equity Share. (“The Price Band”). Bids can be made for a minimum of 26 Equity Shares and in multiples of 26 Equity Shares thereafter. (“Bid Lot”)
The Company intends to utilize the Net Proceeds toward (i) Payment of the purchase consideration for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited estimated to be ₹1,170.00 million; (ii) Funding capital expenditure requirements of our Company for purchase plant and machinery estimated to ₹ 272.17 million and the balance amount towards funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes. (The “Objects of the offer”)
The Offer for Sale comprises up to 14,910,500 Equity Shares by Promoter Selling Shareholders.
The Company is an Indian player serving global clients in critical energy transition equipment and power technologies. The Company provide high voltage electrical equipment and solutions for electrical grid connectivity and energy transition. The Company is a technology-driven company specializing in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors. Additionally, the company offer equipment and solutions tailored for emerging applications such as large-scale renewables. (Source: Care Report).
As per CARE Report, Quality Power is 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 critical components for energy transition from renewable sources to traditional power grids.
As per CARE Report, HVDC technology is transforming the landscape of energy transition equipment and power technologies by enabling efficient, long-distance power transfer with markedly reduced energy losses. This advancement is crucial for integrating renewable energy sources from remote locations, such as offshore wind farms and solar plants in remote regions, into urban areas.
The Company’s multiple manufacturing operations in India are spread across two locations, including Sangli, Maharashtra, and Aluva, Kerala. As part of its global expansion, the Company acquired 51% of the share capital in Turkey based company, Endoks Enerji Anonim Şirketi in 2011, which provides energy solutions specializing in smart grid technologies and power quality management.
Peers of Quality Power include Hitachi Energy India Limited, GE Vernova T&D India Limited and Transformers & Rectifiers (India) Limited. As of March 31, 2024, the Company had 210 customers. The Company’s end customers include power utilities, power industries, and renewable energy entities. The Company’s Revenue from operations for the financial year ended March 31, 2024 stood at ₹3,005.97 million with profit after tax margin of 16.74% and ROE of 29.15%. The Company derives the majority of its revenue from international operations, which constitutes more than 75%, of the Company’s total revenue from operations.
As per Company’s Proforma Consolidated Financial Information, during Fiscal 2024 and the six-month period ended September 30, 2024, the Consolidated Revenue from Operations was ₹ 5,190.49 million and ₹ 2,672.24 million respectively. Consolidated Profit after tax for the same period was ₹656.96 million and ₹537.88 million respectively.
For the six-month period ended September 30, 2024, revenue from operations in Quality Power Group and acquired entity Mehru (Standalone) was ₹1,557.38 million and ₹1,116.80 respectively and profit after tax for the same period was ₹500.78 million and ₹ 49.03 million respectively.
The Offer is being made in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBI ICDR Regulations. This Offer is being made through the Book Building Process in accordance with Regulation 6(2) of the SEBI ICDR Regulations wherein not less than 75% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that our Company in consultation with the BRLM may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (the “Anchor Investor Portion”).
Pantomath Capital Advisors Private Limited is the book running lead manager to the Offer (The “BRLM”).
All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.
