Quality Power Electrical shares list with 2% premium over IPO price

Shares of Quality Power Electrical listed with 1.66% premium over its IPO price on Monday. The stock debuted at Rs 432.05 on BSE as compared to its issue price of Rs 425.

Meanwhile, the stock listed at Rs 430 on NSE.

The IPO, which was offered at Rs 425 apiece, included a fresh equity sale of 52.9 lakh shares and an offer for sale (OFS) of 1.49 crore shares. On valuation, at the upper price band, the issue asked for a market cap of Rs 3,291 crore.


The issue was subscribed by just over 1.2 times at close.

The company proposes to utilise the net proceeds towards funding payment of the purchase consideration for the acquisition of Mehru Electrical and Mechanical Engineers, capital expenditure requirements, funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

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Quality Power is a technology-driven company specializing in power products and solutions across generation, transmission, distribution, and automation.

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Analysts believed the Quality Power IPO gave investors an opportunity to invest in the rapidly growing energy transition and power infrastructure sector.

"We think the company's strong global presence, specialized expertise in HVDC and FACTS technologies, and a diversified high-voltage equipment portfolio position it as a key player in grid modernization and renewable energy integration," said Mehta Equities.

Quality Power's product portfolio includes power products under which Reactors, Line Traps, Transformers, Instrument Transformers, Line Tuners, Metal Enclosed Capacitor Bank and Composites fall.

Under the power quality systems, the company sells static VAR compensators, STATCOMs, Harmonic Filters, Capacitor Banks, and
Shunt Reactors. As of March 2024, the company has 163 full-time employees and 372 contractual workers.

By looking at the financials, the company showed a strong growth, with revenue from operation increasing by 38.7% in FY23 and 18.7% in FY24. The company also reported a net profit growth of 39.1% in FY24, rebounding from a 5.5% decline in FY23.

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