High voltage electrical equipment and solutions provider Quality Power Electrical Equipments is planning to raise funds via initial public offering. It filed preliminary papers with capital market regulator SEBI on September 16.
The IPO is a mix of fresh issuance of Rs 225 crore by the company, and an offer-for-sale of 1.2 crore equity shares by promoter Chitra Pandyan.
The Pandyan family holds 100 percent stake in the company.
With two manufacturing operations in India, the Maharashtra-based company provides high voltage electrical equipment and solutions for electrical grid connectivity and energy transition. Additionally, it offers equipment and solutions tailored for emerging applications such as large-scale renewables.
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It had 210 customers by the end of March 2024, including power utilities, power industries, and renewable energy entities. The company derives the majority of its revenue from international operations.
Quality Power reported revenue at Rs 300.6 crore for the fiscal year ended March 2024, growing 19 percent compared to Rs 253.3 crore in the previous fiscal. Exports contributed nearly 76 percent to revenue in the fiscal 2024.
Profit during the financial year 2023-24 stood at Rs 55.5 crore, increasing 39 percent over the previous year. EBITDA jumped 17 percent to Rs 37.8 crore during the same period, but margin dropped by 2 bps to 12.6 percent.
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The company that competes with Transformers & Rectifiers India, Hitachi Energy India, and GE T&D India will spend Rs 117 crore out of the net fresh issue proceeds for the acquisition of Mehru Electrical and Mechanical Engineers, and Rs 26.8 crore for purchase of plant and machinery. The remaining IPO funds will be utilised for inorganic growth, and general corporate purposes.
Pantomath Capital Advisors is the sole merchant banker to the issue.
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