Quality Power IPO Review Financials, Subscription Date, and Investment Guide

Quality Power Electrical Equipments IPO: A Detailed Analysis

Quality Power Electrical Equipments Limited, a leading player in the high-voltage electrical equipment sector, is set to launch its Initial Public Offering (IPO) on February 14, 2025. The IPO subscription window will remain open until February 18, 2025, offering investors an opportunity to be part of this growing company.

With a strong international presence and a consistent financial track record, Quality Power aims to raise ₹225 crores through a fresh issue of shares and an Offer for Sale (OFS) of 1.2 crore equity shares by promoter Chitra Pandyan.

Company Overview

Founded in 2001, Quality Power specializes in manufacturing high-voltage electrical equipment crucial for power grid connectivity and energy transition. Its product portfolio includes:

• Transformers
• Reactors
• Power quality solutions

The company primarily serves the power generation, transmission, distribution, and automation sectors.

Quality Power operates manufacturing facilities in Sangli, Maharashtra, and Aluva, Kerala, with a global footprint spanning nearly 100 countries. Additionally, the company owns Endoks, a subsidiary in Turkey, further strengthening its international market reach.

Financial Performance

Investors often assess an IPO based on the company's financials. Quality Power has exhibited strong growth, with revenue and profit increasing significantly.

Financial Metric	FY 2022-23	FY 2023-24	Growth (%)
Revenue (₹ crores)	252.6	300.6	19%
Profit (₹ crores)	40.1	55.5	39%
Export Contribution	74%	76%	+2%

Notably, 76% of the revenue comes from exports, indicating a strong global demand for Quality Power’s products.

IPO Objectives

The proceeds from the IPO will be strategically allocated to support the company’s growth initiatives:

1. Acquisition

• ₹117 crores will be used to acquire Mehru Electrical and Mechanical Engineers Private Limited, enhancing Quality Power’s product range and market presence.

2. Capital Expenditure

• ₹26.8 crores are allocated for purchasing new machinery to expand manufacturing capabilities.

3. Inorganic Growth

• The remaining funds will be utilized for future acquisitions and strategic expansions.

IPO Details

Particulars	Details
IPO Opening Date	February 14, 2025
IPO Closing Date	February 18, 2025
Price Band	₹401 - ₹425 per share
Lot Size	TBD
Total Issue Size	₹225 Crores
Listing	BSE & NSE
Lead Manager	Pantomath Capital Advisors Pvt Ltd

Investment Considerations

Pros:

• Market Leadership: Quality Power is a global manufacturer of critical high-voltage equipment, positioning it as a key player in the energy transition sector.
• Financial Strength: The company has demonstrated consistent revenue and profit growth, with a strong international market share.
• Export Dominance: With 76% of revenue coming from exports, the company is less reliant on domestic market fluctuations.

Risks:

• Industry Dependence: Performance is tied to government infrastructure spending and power sector trends.
• Competition: Faces strong competition from global giants like Hitachi Energy India Limited and GE T&D India Limited.

Who Should Invest in Quality Power IPO?

Quality Power’s IPO could be a strong opportunity for investors looking for growth-oriented, export-driven companies in the power sector. Investors interested in technical analysis of stock movements can explore our in-depth guide on Technical Analysis to evaluate entry and exit points for this IPO.

If you are new to intraday trading, you might want to check our guide on How to Start Intraday Trading to understand how IPO stocks perform in the short term.

Conclusion

Quality Power’s upcoming IPO offers a compelling opportunity to invest in a high-growth electrical equipment company with strong export revenues and a solid financial track record. However, investors should weigh the risks and competition before making a decision.

If you want to apply for Quality Power IPO, you can click here.