 "Quality power shares defy subdued markets, gain 4% in trade; here's why")
Shares of high-voltage electrical equipment and solutions manufacturer Quality Power Electrical Equipments were ruling higher on the bourses on Friday, December 26, after the company announced the acquisition of a 76 per cent equity stake in Veeral Controls Pvt Ltd, a Gandhinagar-based company. Following the acquisition update, the Quality Power share price rose 4.01 per cent to an intraday high of ₹757.10 per share on the NSE.
Though the counter has presented the gains partially, it continues to trade in the positive territory. At 10:12 AM on Friday, Quality Power shares were seen exchanging hands at ₹754 apiece, higher by 3.59 per cent from its previous close of ₹727.90 per share. The benchmark Nifty50, meanwhile, was trading at 26,090.75, down by 51 points or 0.20 per cent.
A combined total of 0.25 million equity shares of Quality Power, valued at around ₹20 crore, exchanged hands on the BSE and NSE.
Quality Power shares have a 52-week range of ₹1,082 to ₹267.80 on the NSE. The company’s market capitalisation as of December 26 stands at ₹5,822.63 crore. FOLLOW STOCK MARKET LIVE UPDATES
Quality Power announces acquisition update
The upward movement in the Quality Power share price came after the company, in an exchange filing, announced that it has executed the Share Subscription Agreement and Shareholders Agreement for the acquisition of a 76 per cent equity stake in Veeral Controls Private Limited by its subsidiary company, Quality Power Engineering Projects Private Limited.
According to the exchange filing, the paid-up share capital of Veeral Controls is ₹32 lakh, and the turnover as of 31st March 2025 is ₹4.19 crore.
The total equity infusion under the transaction is approximately ₹15.20 crore, entirely through primary capital issuance. The transaction includes all assets, land, and factory costs.
"The acquisition expands Quality Power’s technology base into high-current power conversion, adding proprietary rectifier and power conversion technologies, creating solution synergies with existing products, and strengthening participation in green hydrogen, industrial, rail, and defense applications," said Quality Power in an exchange filing. ALSO READ | Seamec shares rise 4% as vessel sails for pipeline project work
Post the said acquisition, Veeral Controls Private Limited will be a step-down subsidiary company (76 per cent) of Quality Power Electrical Equipments Limited.
Following the acquisition, Manu Achuthan, Chief Marketing Officer of Quality Power Group, said, “Veeral’s expertise in high-current rectifiers and traction and defense power electronics strengthens our ability to serve customers directly at the point of power conversion and expands our relevance across the evolving hydrogen, traction, and strategic infrastructure space.”