Quality Power Electrical Equipments IPO: DRHP Filed with SEBI

Quality Power Electrical Equipments Private Limited submits DRHP with SEBI and will be coming up with its public issue in the meantime; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 225 crore of equity shares and an offer for sale of 1.20 crore equity shares with a face value of Rs 10 each. The total aggregate issued shares has not been disclosed yet. This new IPO issue is being made through the book-building process with a reservation of less than 75% of the new offer reserved for Qualified Institutional Investors, not more than 15% reserved for NII and not more than 10% reserved for Retail Individuals. The opening and closing dates of this IPO have not yet been disclosed, and the company will announce the price band soon.

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About Quality Power Electrical Equipments Private Limited

Quality Power Electrical Equipments Private Limited incorporated in 2001, is an Indian company that offers fabrication of the most critical energy transition equipment and high voltage electrical solutions. The firm specializes in high-end power products used in generation, transmission, distribution, and automation with emphasis on niche applications such as large renewable integration. Other products include reactors, transformers, harmonic filters and grid interconnection solutions, to name a few, like STATCOM and Flexible AC Transmission Systems (FACTS).

The company have over 2 decades of experience in this market as they serve both domestic and international customers. The company's manufacturing facilities adhere to the requirements of international standards, with an ISO 17025:2017 accredited test lab in Sangli, Maharashtra, qualified up to 765kV.

Quality Power Electrical Equipments Private Limited IPO Objectives

The Net Proceeds from the Fresh Issue are proposed to be utilized for the following purposes: payment for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited, funding capital expenditure for the purchase of plant and machinery, supporting inorganic growth through potential acquisitions and strategic initiatives, and general corporate purposes.

Financials of the Company

The company delivers positive financial growth up to the period ending March 31, 2024. Assets increased by 14.94% from Rs 312.24 crore in FY 2023 to Rs 358.88 crore in FY 2024. Revenue of the company improved by 18.70%, from Rs 253.25 crore in FY 2023 to Rs 300.60 crore in FY 2024, and profit after tax grew by 39.06% during the period from Rs 39.89 crore in FY 2023 to Rs 55.47 crore in FY 2024. All these numbers reflect positive growth in profitability as well as the company's overall health. Moving forward, this growth pace needs to continue to position the company even better.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by Pantomath Capital Advisors Private Limited, which is the book-running lead manager of this public issue. Whereas the company has appointed Link Intime India Private Limited as the registrar for this public issue. The promoter(s) of the company are Thalavaidurai Pandyan, Chitra Pandyan, Bharanidharan Pandyan and Pandyan Family Trust.

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