Quality Power Electrical Equipments Limited is coming up with an IPO consisting of a fresh issue of shares aggregating up to INR 2,250.00 million and an offer to sell up to 1,20,00,000 equity shares of face value of ₹ 10 each. The company aims to utilise the funds for acquisition payment, capital expenditure, inorganic growth and strategy, and general corporate purposes.

Quality Power IPO – Important Dates

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Quality Power Electrical Equipment IPO – Company Profile

Quality Power Electrical Equipments Limited incorporated in 2001, is an Indian company serving global clients with critical energy transition equipment and power technologies and specialises in high-voltage electrical equipment and solutions for grid connectivity and energy transition.

The company manufactures critical high-voltage equipment for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) networks, enabling energy transition from renewable sources to power grids.

With over 20 years of experience, it offers products like reactors, transformers, converters, and grid interconnection solutions globally. It has manufacturing facilities in Sangli, Maharashtra, and Aluva, Kerala. In 2011, it acquired 51% of Endoks, a Turkey-based subsidiary.

Quality Power Electrical IPO Fundamental Analysis

Quality Power Electrical Limited’s financial analysis reveals a growing performance. Revenue has increased, with increasing profitability and EPS, along with an increase in total assets and equity, indicating potential operational efficiency. 

• Revenue Trend: The revenue increased from ₹2,532.50 millions in March 2023 to ₹3,005.97 millions in March 2024. 
• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹398.92 million in March 2023 to ₹554.74 million by March 2024. 
• Earnings per Share (EPS): The basic EPS has increased from ₹2.86 in March 2023 to ₹5.19 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has increased from 22.71% to 29.15%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating reduced liquidity in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a decrease in the Inventory Turnover Ratio, which might suggest slower sales.

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Quality Power IPO Financial Analysis

Quality Power Electrical Equipment IPO Peer Comparison

Quality Power Electrical Equipments Limited shows a steady performance with the highest RONW among its competitors. Hitachi Energy India Ltd has the highest revenue, PE, and NAV  when compared to peers, while Transformers & Rectifiers (India) Limited and GE T&D India Limited have shown stable growth and consistent results.

Quality Power Electrical IPO Objective

The main objective of Quality Power Electrical Limited IPO is to utilise the funds for acquisition payment, capital expenditure, inorganic growth and strategy, and general corporate purposes.

1. Payment of the purchase consideration for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited: The company will utilise ₹ 1,170 million to acquire 522,750 equity shares from the sellers for a cash consideration of ₹ 1,200.00 million aggregating to 51 % of the shareholding of Mehru Electrical and Mechanical Engineers Private Limited.

2. Funding capital expenditure requirements of the Company for the purchase of plant and machinery: The company proposes to utilise ₹ 270.00 million towards purchasing plant and machinery, based on the current estimates, the specific number and nature of such plant and machinery to be procured by the Company will depend on their business requirements.

3. Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes: The balance amount will be utilised towards funding inorganic growth through acquisition and other strategic initiatives that are based on the management’s current estimates and budgets and the Company’s historical acquisitions and strategic investments and partnerships,  and other relevant considerations.

Quality Power IPO Risks And Challenges

Quality Power Limited’s risks include overseas revenue dependency, raw material supply risks, and export sales risk management, which could adversely impact operations, profitability, and business performance.

• They generate over 64% of their revenue from overseas operations, which has been consistent over the last three fiscal years. As they expand into new regions, they may face significant liabilities and potential loss of investment, negatively impacting their business, financial condition, and results.

• Any shortages, delays, or disruptions in raw material supply, as well as price fluctuations, could adversely impact their business, financial condition, results of operations, and cash flows.

• Their inability to handle risks (including foreign currency fluctuation risks) associated with the export sales could negatively affect their sales to customers in foreign countries, as well as their operations and representations in such countries, and their overall profitability

Quality Power Electrical IPO – Industry & Market Potential

India’s energy transition and power system have rapidly expanded due to rising demand, government efforts to electrify rural areas, and the need to connect generation stations, including integrating renewable energy from RE-rich states.

The transmission line network grew at a CAGR of 3% to 4,85,544 CKm by March 2024, up from 4,13,407 CKm in March 2019. In FY24, 14,203 CKm were added, bringing the total to 4,87,587 CKm by July 2024. The transformation line capacity reached 12,65,700 MVA by July 2024.

As of July 2024, 54 transmission projects have been completed, and 53 are under construction, including energy transition and power systems for renewable and conventional projects in Rajasthan, Karnataka, Maharashtra, and more.

Quality Power Electrical Equipment IPO – Type of Offer

Quality Power Electrical Equipments Limited plans a fresh issue of shares aggregating up to INR 2,250.00 million to utilise the funds for acquisition payment, capital expenditure, inorganic growth and strategy, and general corporate purposes. Additionally, the company proposes an offer to sell up to 1,20,00,000  equity shares of face value of ₹ 10 each.

1. Fresh Issue: The company will issue new shares aggregating up to INR 2,250.00 million to raise capital. The company intends to utilise the proceeds from the fresh issue for acquisition payment, capital expenditure, inorganic growth and strategy, and general corporate purposes.
2. Offer for sale: Quality Power Electrical Equipments Limited is offering to sell 1,20,00,000 existing shares of face value of ₹ 10 each. The following are the details of the existing shareholder, who is also the promoter selling the shares:

Quality Power IPO Offer Size

The offer size of Quality Power Limited IPO consists of a fresh issue of shares aggregating up to INR 2,250.00 million and an offer to sell 1,20,00,000  equity shares of face value of ₹ 10 each. The company aims to utilise the funds for acquisition payment, capital expenditure, inorganic growth and strategy, and general corporate purposes. 

Quality Power Electrical Equipment IPO Allotment Structure

Quality Power Electrical Equipments Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

Read more about Quality Power IPO Day 1 Subscription Status

How to apply for the Quality Power IPO?

To apply for the Quality Power IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Quality Power Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Quality Power IPO Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

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How do you check Quality Power IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Quality Power Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Quality Power Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Quality Power Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Quality Power Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

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Quality Power Electrical IPO Offer Registrar

The registrar for the Quality Power Electrical Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Link Intime India Private Limited

C 101, 1st Floor, 247 Park

L.B.S. Marg, Vikhroli West

Mumbai – 400 083, Maharashtra, India

Telephone: +91 810 811 4949

E-mail: [email protected]

Website: www.linkintime.co.in

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Quality Power IPO – FAQs