As an investor, deciding whether the IPO is Good or Bad to invest in can often be challenging. If you are confused and worried about whether to Apply or Not for a Quality Power IPO. Then worry not here we are describing 10 important key points & in-depth detailed Quality Power IPO review and Analysis which will help you to make the decision.
Strengths and Weaknesses of Quality Power IPO
Strengths:
- Initially, the company started its business with the manufacturing of reactors and transformers and gradually expanded its products and services to electrical equipment and solutions for electrical grid connectivity and energy transition.
- The company is comprised of a strong research and development team that is ready to provide solutions regarding the energy transition and power technologies sector.
- Quality Power is one of the leading companies to provide high-voltage electrical equipment and solutions for electrical grid connectivity and energy transition to many industries, taking a big step toward transforming to decarbonization and renewable energy adoption.
- They are renowned for providing high-quality voltage electrical equipment and solutions, resulting in a diversified customer base and long-term relationships. The company has 210 customer base as of March 31, 2024. power utilities, renewable energy players, and industries like automobiles, oil and gas industries, cement, chemical, renewables, traction & locomotives, steel & metal industries, and power utilities are some of their major customers.
Weaknesses:
- In India, they have a total of 7 operating facilities at Sangli, Maharashtra, and Aluva, Kerala, and in Turkey at Ankara, any disruption, shutdown, or breakdown of any of the operating facilities can negatively affect the financial growth, financial conditions and cash flows of the company.
- Delaying in supplying raw materials, shortage of raw materials, or price fluctuations in the raw materials could adversely affect the company’s financial growth, operations, and cash flow of the company.
- For the last three years, 64% of the company’s income is generated from international operations. They plan to expand their business into other regions. However, it may lead the company to risk losing some of its investment in the process, which may significantly impact the company’s financial growth and performance.
- Quality power mostly depends on the High-Voltage Direct Current (“HVDC”) and Flexible Alternating Current Transmission Systems (“FACTS”), which depend on the social, economic, and regulatory factors that are out of their control. Any negative effect in this market can lead to financial loss.
Quality Power IPO Details
| IPO Size | ₹858.70 crores |
| Offer-for-sale | 1,49,10,500 equity shares |
| Fresh issue | ₹225 crores |
| Price band | ₹401 to ₹425 |
| Subscription | Opens on February 14, 2025, and closes on February 18, 2025 |
| Purpose of IPO | Fresh issue and Offer-for-Sale |
1. Quality Power IPO Open and Closing Date?
The Quality Power IPO opening date is February 14, 2025, and the closing date of the IPO is February 18, 2025.
2. What is the size of the Quality Power IPO?
The company planned to raise funds around ₹858.70 crores via IPO. This IPO comprises a fresh issue of ₹225 crores and an offer for sale of up to 1,49,10,500 equity shares with a face value of ₹10 each.
3. What are the subscription details for the Quality Power IPO?
A Quality Power IPO price range is set at ₹401 to ₹425 per share. In this IPO a total of 26 shares were available in 1 lot size for the minimum Retail category and for the maximum retail category, 468 shares in 18 lot sizes were available, for the S-HNI Minimum category 494 shares were available in the 19 lot sizes. While for the B-HNI Minimum category 2,366 shares were available in 91 lot sizes.
To invest in this IPO, each investor category has specific investment amounts:
- Retail Investors: Minimum investment of ₹11,050 and maximum investment of ₹1,98,900.
- Small HNI (S-HNI): Minimum investment of ₹2,09,950.
- Big HNI (S-HNI): A minimum investment of ₹10,05,550 is required.
4. What is the listing date of Quality Power IPO?
Quality Power is a Mainboard IPO whose shares will be listed on February 21, 2025, on the BSE (Bombay Stock Exchange) & NSE (National Stock Exchange).
5. What are the objectives of the Quality Power IPO Issue?
- The raised funds will be utilized to handle the Payment of the purchase of Mehru Electrical and Mechanical Engineers Private Limited.
- Will use the proceeds for capital expenditure requirements of the Company for the purchase of plant and machinery.
- Utilizing the funds for financing business expansion by acquiring other companies and pursuing strategic opportunities.
- Lastly, the remaining funds will be utilized for the company’s General Corporate Purposes.
6. About Quality Power
Quality Power, incorporated in 2001, is one of the growing companies that offer high-voltage electrical equipment and solutions for grid connectivity and energy transitions. They are an innovation-led company renowned for providing power products and solutions across power generation, transmission, distribution, and automation sectors. Moreover, they also offer various equipment and solutions mainly for new applicants like large-scale renewables. Their manufacturing facilities have been specialized to meet the quality standards of the global conglomerate clients, including those listed on the Fortune 500. Furthermore, the company’s Test & Research Lab in Sangli is recognized as an independent laboratory that satisfies both Indian and international standards for systems up to 765kV. As of March 31, 2024, the company comprises 163 full-time employees and 372 employees on a contract basis.
7. Quality Power IPO Financials
The company reported revenue of ₹331.4 crores in 2024 against ₹273.55 crores in 2023. The company reported a profit of ₹55.47 crores in 2024 against a profit of ₹39.89 crores in 2023.
8. Quality Power IPO Promoters
Thalavaidurai Pandyan, Chitra Pandyan, Bharanidharan Pandyan, and Pandyan Family Trust are the promoters of the Quality Power company.
9. Who are Quality Power IPO Lead Managers and Registrar?
Pantomath Capital Advisors Pvt Ltd is the lead manager of Quality Power while Link Intime India Private Ltd is the registrar of the company.
10. Should you Apply or Not for Quality Power IPO?
Quality Power is one of the growing companies, Founded in 2001, it is involved in the business of providing energy transition equipment and power technologies. Among many, Quality Power is one of the few companies that manufactures critical high-voltage equipment for High Voltage Direct Current (“HVDC”) and Flexible AC Transmission Systems (“FACTS”) networks globally, with a reported revenue of ₹331.4 crores in 2024. Power utilities, power industries, and renewable energy entities are some of the diverse range of customers they serve too. Over the years, in 2007, India, Quality Power established their operations unit from a single unit to 7 units today in India and overseas, showing their dedication and growth of the company. Asia, the Middle East, North America, South America, Australia, and Europe are some of the regions they provide their services and products. In FY24, the company generated a revenue of ₹3,005.97 million with achieved an ROE of 29.15%, while generating a PAT of ₹554.74 million in FY24, respectively.
Quality Power has an outreach itself with a strong track record of strategic acquisitions to enhance capabilities, assets, customer reach, products, and market presence making Quality Power an attractive choice for investors to invest in. Ultimately, at the end of the day, it’s your decision whether you should apply for this IPO or not or if this IPO is good or bad. We recommend first evaluating the company’s financial growth and potential to avoid any loss of money. For more information and queries please connect with our IPOWatch team, we are always ready to help and solve your queries.
