• Source:JND
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Quality Power IPO Price Band: Power transmission equipment and power technologies company Quality Power on Monday priced its Rs 859 crore initial public offering at a price range of Rs 401-425 per share. The IPO will open on February 14 and close on February 18. The company said that anchor investor bidding will begin on February 13, a day after the IPO.

The company is valued at around Rs 3,300 crore at the upper end of the price band.

The IPO includes a fresh issue of equity shares worth a total of Rs 225 crore and an offer for sale of 1.5 crore equity shares worth Rs 634 crore at the upper end of the price band. This takes the issue size to Rs 859 crore.

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As part of the OFS, promoter Chitra Pandian will sell shares of the company. The Pandian family owns 100 per cent stake in Maharashtra-based Quality Power.

The proceeds from the new issue will be used to finance the acquisition of Mehru Electrical and Mechanical Engineers Private Limited, capital expenditure requirements for the purchase of plant and machinery.

In addition, the company will use the funds for inorganic growth through unspecified acquisitions, other strategic initiatives and general corporate purposes.

The company has allocated 75 percent of the issue size to qualified institutional buyers, 15 percent to non-institutional investors and the remaining 10 percent to individual investors. Quality Power operates in key power transformation equipment and power technologies up to 765 kV and provides solutions for high voltage power equipment and power grid connection and power transformation.

The company specializes in providing energy products and solutions in the fields of power generation, transmission, distribution and automation. According to a CARE Ratings report, Quality Power is one of the few global manufacturers of key high-voltage equipment for HVDC transmission systems and flexible AC transmission systems.

These equipment and networks are important components in the energy transition from renewable sources to conventional power grids. The company reported revenue from operations of Rs. 300 crore and profit of Rs. 55.5 crore for the financial year ended March 31, 2024.

Pantomath Capital Advisors Private Limited is the sole book runner and Link Intim India is the registrar for the IPO. The company’s shares are expected to be listed on BSE and NSE on February 24.

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(With Inputs From PTI)

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