Quality Power IPO to Open on February 14, Aims to Raise ₹858.70 Crore
BILKULONLINE
Ahmedabad, Feb 11: Quality Power Electrical Equipment Ltd. is set to launch its Initial Public Offering (IPO) worth ₹858.70 crore. The IPO comprises a fresh issue of 0.53 crore shares aggregating ₹225 crore and an offer-for-sale (OFS) of 1.49 crore shares amounting to ₹633.70 crore.
IPO Details and Subscription Schedule
The subscription window for Quality Power’s IPO will open on February 14, 2025, and will close on February 18, 2025. The allotment process is expected to be finalized on February 19, 2025, with a tentative listing date on February 21, 2025, on both BSE and NSE.
The IPO’s price band has been set between ₹401 to ₹425 per share, with a minimum lot size of 26 shares. Retail investors will need to invest at least ₹10,426, but to increase their chances of allotment in case of oversubscription, they are advised to bid at the cutoff price, which amounts to ₹11,050.
For Non-Institutional Investors (NIIs), the minimum investment size varies:
Small NIIs (sNII): 19 lots (494 shares), amounting to ₹2,09,950.
Big NIIs (bNII): 91 lots (2,366 shares), amounting to ₹10,05,550.
About Quality Power Electrical Equipment Ltd.
Founded in 2001, Quality Power Electrical Equipment Ltd. specializes in high-voltage electrical equipment and power solutions for grid connectivity, power transmission, and renewable energy applications. The company plays a crucial role in manufacturing critical high-voltage equipment for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS).
The company operates manufacturing facilities in Sangli, Maharashtra, and Aluva, Kerala, ensuring adherence to international quality standards. As of March 31, 2024, Quality Power had 163 full-time employees and 372 contract-based workers.
Top Management and Leadership
The top management of Quality Power includes:
Thalavaidurai Pandyan as the Chairman and Managing Director.
Chitra Pandyan as a Whole-time Director.
Bharanidharan Pandyan as the Joint Managing Director.
Shailesh Kumar Mishra as an Independent Director.
Rajesh Jayaraman as the Chief Financial Officer (CFO).
Bharanidharan Pandyan interacted with the media on Tuesday at the IPO announcement event held in Ahmedabad.
Utilization of IPO Proceeds
According to the company’s Red Herring Prospectus (RHP), the funds raised will be utilized as follows:
₹117 crore for the acquisition of Mehru Electrical and Mechanical Engineers Pvt Ltd.
₹27.21 crore to fund capital expenditure on plant and machinery.
The remaining funds will be allocated for strategic acquisitions and general corporate expenses.
Key Stakeholders and Lead Managers
The OFS portion of the IPO includes Chitra Pandyan, the promoter selling stakeholder.
Pantomath Capital Advisors Pvt Ltd is the book-running lead manager, while MUFG Intime India Pvt Ltd is serving as the registrar to the offer.
Disclaimer: Investors looking to participate in this IPO should carefully review the company’s financials, market position, and growth strategies before making investment decisions.
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