Quality Power Electrical IPO opens for subscription. Check key dates, GMP, price band and review

Quality Power Electrical Equipments IPO will open for subscription on Friday and will close on February 18. The issue is a mix of fresh issue worth Rs 225 crore and an offer for sale (OFS) of 1.49 crore shares.

Net proceeds from the IPO will be used for acquisition of Mehru Electrical and Mechanical Engineers, funding capital expenditure requirements for purchase plant and machinery, funding inorganic growth through unidentified acquisitions and other strategic initiatives.

Check Quality Power IPO price band

The company has fixed a price band of Rs 401-425 per share, where investors can bid for 26 shares in one lot and in multiples thereafter.

Latest Quality Power GMP

Ahead of the issue opening, the GMP is around Rs 14, which is 3% premium over the IPO price.

Quality Power IPO review: Should you subscribe?

Analysts advised investors to subscribe to the IPO for the long term as the company is is strategically positioned as an Indian producer of high-voltage power products and power quality systems with a diversified global customer base.

"QPEEL has a seasoned team which brings extensive industry experience and skilled workforce, enabling the company to capitalize on growth opportunities, acquire companies at strategic pricing driving growth, market expansion and effective project execution to scale stronger growth through its product offerings, unlocks geographical expansion and solidifying leadership in the energy transmission sector in the coming years. Hence, we recommend a Subscribe," said Reliance Securities.

Quality Power Electrical Equipments IPO details

Incorporated in 2001, Quality Power Electrical Equipments is an Indian player serving global clients in critical energy transition
equipment and power technologies. The company provides high voltage electrical equipment and solutions for electrical grid connectivity and energy transition.

They are a technology-driven company specializing in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors.

Additionally, the Company offers equipment and solutions tailored for emerging applications such as large-scale renewables.

The company 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 key components for energy transition from renewable sources to traditional power grids.

Quality Power achieved a 28.3% revenue CAGR (FY22-24) with export revenue contributing up to 80.7% (in FY24) and high capital efficiency with ROE of 29.2% and ROCE of 19.2% demonstrating strong market performance.

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