Quality Power files draft papers with Sebi to raise funds via IPO

Quality Power Electrical Equipments, an energy transmission equipment and power technologies company, has filed preliminary papers with capital market regulator Sebi to raise funds through a initial public offering.

The initial public offering (IPO) comprises a fresh issue of equity shares aggregating up to Rs 225 crore and an offer for sale (OFS) of up to 1.2 crore equity shares, according to the draft red herring prospectus filed on Monday.

As part of the OFS, promoter Chitra Pandyan will offload the shares of the IPO-bound company.

The Pandyan family holds 100 per cent stake in Sangli-based Quality Power.

Proceeds from the fresh issue are proposed to be utilised for the acquisition of Mehru Electrical and Mechanical Engineers Pvt Ltd, funding capital expenditure requirements for purchasing plant and machinery.

Besides, the company will also use the funds for inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

Quality Power is engaged in critical energy transition equipment up to 765kv and power technologies and provides high-voltage electrical equipment and solutions for electrical grid connectivity and energy transition.

The company specialises in the provision of power products and solutions across power generation, transmission, distribution, and automation sectors.

As per a report by Care Ratings, Quality Power is among the few global manufacturers of critical high-voltage equipment for High Voltage Direct Current (HVDC) and flexible AC transmission systems networks.

These equipment and networks form critical components for energy transition from renewable sources to traditional power grids.

The company's revenue from operations for the financial year ended March 31, 2024 reported at Rs 300 crore and its profit stood at Rs 55.5 crore.

Pantomath Capital Advisors Pvt Ltd is the sole book running lead manager and Link Intime India is the registraar to the IPO.

The shares of the company will be listed on the BSE and NSE.