Quality Power acquires 51% stake in Mehru Electrical; share price soars 11%

Shares of the recently listed heavy electrical equipment maker, Quality Power, were trading higher on the bourses on Friday, March 7, 2025. Quality Power shares climbed 10.70 per cent to a day's high of Rs 374.30 per share on the National Stock Exchange during intra-day trading on Friday. 

 

The uptick in the company's share price came on the back of the company’s announcement that it has Quality Power has acquired 51 per cent of the share capital of Mehru Electrical and Mechanical Engineers for a total cash consideration of Rs 120 crore, through a Share Purchase Agreement.  "This acquisition represents a strategic milestone, aligning with Quality Power’s long-term vision to expand its technological capabilities, USP, manufacturing scale, and global market reach," Quality Power said in an exchange filing on the NSE.  READ: Defence shares in focus; Data Patterns, GRSE, BDL, Zen, Paras gain upto 11%

 

 

Commenting on the acquisition of Mehru, Bharanidharan Pandyan, joint managing and whole-time director of Quality Power, said, "This was one of the main objectives of the recently concluded IPO, and I am pleased to share that we have honored our commitment with lightning speed. From a product portfolio standpoint, this strategic move reinforces Quality Power’s commitment to cutting-edge technology, precision engineering, and market leadership in high-voltage equipment."

 

With the growing global demand for grid stability, FACTS, and renewable integration, Pandyan believes this acquisition positions the company strongly in a multi-billion-dollar energy products market, where the barriers to entry are high due to stringent technical requirements and regulatory compliance.

 

Quality Power is a manufacturer of high-voltage electrical equipment and solutions, providing reactors, transformers, line traps, FACTS, and power quality solutions. With multiple manufacturing facilities in India and Turkey, the company has installations in over 100 countries for equipment up to 765kV systems. The company’s shares made their D-street debut on February 24, 2025, by listing at Rs 430 per share on the NSE, and Rs 432.05 per share on the BSE, against the IPO issue price of Rs 425 per share.  READ: Blue Star shares gain as company unveils Rs 400-cr capacity expansion plan

 

As of March 7, 2025, Quality Power enjoys a market capitalisation of Rs 2,865.43 crore on the NSE.

 

Quality Power shares have a 52-week range of Rs 430.75 – Rs 336 on the NSE.

 

At around 11:42 AM on Friday, Quality Power shares were quoted at Rs 370.95, up 9.72 per cent from its previous close of Rs 338.10 on the NSE. A combined total of nearly 0.16 million equity shares of Power Grid Corporation, estimated to be worth Rs 59 crore, exchanged hands on the NSE and BSE.

 

Meanwhile, the benchmark equity indices were trading higher on Friday. The BSE Sensex was quoted 120 points or 0.16 per cent higher at 74,459, and the NSE Nifty50 was up by 48 points or 0.21 per cent at 22,592.