Quality Power IPO price band likely to be around Rs 400-430; to raise Rs 900 crore

The IPO of Sangli-based Quality Power Electrical Equipment will comprise both, a fresh issue and offer for sale (OFS), with the fresh issue size pegged at Rs 225 crore.

Quality Power Electrical Equipment, a leading Indian player in the energy transition and equipment segment servicing global clients, is eyeing to raise as much as Rs 900 crore through its initial public offer (IPO), which is likely to open this week.

According to sources, the price band for the public issue of the company is likely to be fixed upwards of Rs 400 per share.

“The IPO is likely to be open for subscription between February 14 and 18 with the anchor book allocation on February 13. The price band for the IPO will be in the range of Rs 400 to Rs 430,” said a person familiar with the development.

Further, the IPO of the Sangli-based company will comprise both, a fresh issue and offer for sale (OFS), with the fresh issue size pegged at Rs 225 crore. The OFS component will comprise of 1.2 crore equity shares by promoter Chitra Pandyan.

Also Read: Quality Power IPO to open on February 14, fresh issue size at Rs 225 crore

Quality Power Electrical Equipment is an Indian player serving global clients in critical energy transition equipment and power technologies by providing high voltage electrical equipment and solutions for electrical grid connectivity and energy transition. It also offers equipment and solutions tailored for emerging applications such as large-scale renewables.

Its manufacturing operations in India are spread across two locations -- Sangli, Maharashtra, and Aluva, Kerala. As of March 31, 2024, the company had 210 customers.

In terms of financials, the company reported a net profit of Rs 55.47 crore in FY24 with revenues of nearly Rs 301 crore. In FY23, the net profit and revenue was Rs 39.89 crore and 253.25 crore, respectively.

Incidentally, the company derives a majority of its revenue from its international operations – the share was nearly 76 percent and 73 percent in FY24 and FY23, respectively.

Meanwhile, in the current calendar year (CY25), half a dozen companies have already launched their IPOs with the cumulative fund raising pegged at nearly Rs 5,000 crore. Incidentally, CY24 was a record year in terms of IPOs with as many as 91 firms raising a cumulative amount of Rs 1.6 lakh crore. It bettered the previous high of nearly Rs 1.19 lakh crore in CY21.

Pantomath Capital is the sole merchant banker managing the IPO of Quality Power Electrical Equipment.