Quality Power's Rs 859 cr IPO to open on Feb 14 with fresh issues, OFS

Quality Power, an energy transmission equipment and power technologies company, on Monday fixed a price band of Rs 401 to Rs 425 per share for its Rs 859-crore initial public offering (IPO).

The initial share-sale will open for public subscription on February 14 and conclude on February 18. The bidding for anchor investors will open for a day on February 13, the company announced.

The company's valuation has been pegged at nearly Rs 3,300 crore at the upper-end of the price band.

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 1.5 crore equity shares valued Rs 634 crore at the upper-end of the price band. This aggregates the issue size to Rs 859 crore.

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

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

Proceeds from the fresh issue would 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 use the funds for inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

The company has kept aside 75 per cent of the issue size for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

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 was 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 registrar to the IPO.

The shares of the company are expected to list on the BSE and NSE on February 24.