Quality Power Electrical Equipments Limited IPO

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The Company are a leading Indian company with a global footprint in the critical energy transition and power technologies space. Their focus is on delivering high-voltage electrical equipment and innovative solutions that enable electrical grid connectivity and support the global energy transition. As a technology-driven organization, they specialize in power products and solutions that span the entire spectrum of power generation, transmission, distribution, and automation. Their offerings also extend to cutting-edge equipment and solutions designed specifically for emerging applications, such as large-scale renewable energy systems.

Unique Position in High Voltage Energy Solutions

They are among the few global manufacturers capable of delivering critical high-voltage equipment for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) networks. These technologies form the backbone of energy transition efforts, facilitating the integration of renewable energy sources into traditional power grids. With over two decades of experience in the energy transition space, their comprehensive product portfolio includes:

i. Transformers and Reactors: Engineered for power transmission efficiency.
ii. Line Traps and Instrument Transformers: Supporting grid communication and protection.
iii. Capacitor Banks and Harmonic Filters: Enhancing power quality and reducing distortions.
iv. Converters and Reactive Power Compensation Systems: Enabling efficient grid performance.

They also provide advanced grid interconnection solutions featuring technologies like Static Synchronous Compensators (STATCOM) and Static VAR Compensators (SVC). These solutions are pivotal in ensuring stable and reliable grid performance in both domestic and international markets.

Global Reach and Commitment to Innovation

Their extensive domestic and international footprint enables them to cater to diverse customer bases across the globe. By offering a broad range of high-voltage products and solutions, they support the modernization and advancement of electrical networks. Their technologies are designed to enhance grid reliability and performance while addressing the challenges posed by modern energy systems.

With a focus on innovation and efficiency, their high-voltage solutions enable operators to maintain power quality and operational reliability. By providing critical support for power grid management and overall network stability, they are actively contributing to the evolution of contemporary electrical infrastructure.

Conclusion

As a leader in high-voltage electrical equipment and solutions, they are uniquely positioned to drive the energy transition by providing technologies that ensure efficient power transmission and stable grid performance. Their advanced solutions, backed by world-class manufacturing and research capabilities, reflect their commitment to delivering value to clients worldwide while contributing to a sustainable energy future.

Objects of the Quality Power Electrical Equipments Limited IPO:

The Net Proceeds of the Fresh Issue are proposed to be utilized in the following manner: i. Payment of the purchase consideration for the acquisition of Mehru Electrical and Mechanical Engineers Private Limited ii. Funding capital expenditure requirements of the Company for purchase plant and machinery iii. Funding inorganic growth through unidentified acquisitions and other strategic initiatives iv. General Corporate Purposes. The Company will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale will not form part of the Net Proceeds. Total number of share issue :- i. Fresh issue is 52,94,118 shares, ii. Offer for sale is 1,49,10,500 shares.

Quality Power Electrical Equipments Limited IPO Details:

Open Date: Feb 14 2025
Close Date: Feb 18 2025
Total Shares: 2,02,04,618
Face Value: ₹ 10 Per Equity Share
Issue Size: 858.70 Cr.
Lot Size: 26 Shares
Issue Price: ₹ 401 - 425 Per Equity Share
Listing At: NSE,BSE
Listing Date: Feb 21 2025

Promoters And Management:

Thalavaidurai Pandyan, Chairman and Managing Director, and a Promoter of the Company, has been associated with them since inception. He holds a diploma in electrical engineering (industrial electronics) from Tamil Nadu's State Board of Technical Education. With 39 years of experience, he previously served as Chief Design Engineer at Hind Rectifiers Limited and Works Manager at PS Electricals (P) Limited. Bharanidharan Pandyan, Joint Managing and Whole-time Director, and a Promoter of the Company, has been associated with them since July 25, 2002, with 22 years of work experience. He holds a postgraduate degree in management, specializing in family-managed business, from S.P. Jain Institute of Management and Research, Mumbai. Chitra Pandyan, Whole-time Director and Promoter of the Company, has been associated with them since inception, with 22 years of experience. She has completed her education up to matriculation.

Financials of Quality Power Electrical Equipments Limited IPO:

Particulars ( in million) 6MFY25 Fy24 Fy23 Fy22
Revenue from operations 1,557.38 3,005.97 2,532.50 1,826.38
Other income 269.77 308.04 203.01 290.95
Total Income 1,827.15 3,314.01 2,735.51 2,117.33
Cost of materials consumed 878.32 2,053.04 1,575.33 1,079.94
(Increase)/decrease in inventories 40.26 -50.24 23.06 -8.52
Employee benefits expenses 129.73 247.58 200.63 165.99
Other expenses 192.67 377.17 411.91 357.13
EBITDA 316.40 378.42 321.57 231.84
OPM 20.32% 12.59% 12.70% 12.69%
Finance costs 17.23 22.93 26.65 14.76
Depreciation and amortisation 18.15 33.65 23.37 19.26
PBT 550.79 629.88 474.56 488.77
Total tax expenses 47.65 77.81 77.51 67.67
Profit for the year 500.78 554.74 398.92 422.27

Comparison With Peers:

Financial Metric Quality Power (Fy24) Hitachi Energy (Fy24) Transformers & Rectifiers India Ltd (TRIL) (FY24)
Revenue (₹ Crores) 300.6 5237 1291
EBITDA (₹ Crores) 37 359 134
PAT (₹ Crores) 55.47 164 47
EBITDA Margin (%) 12.59% 6.86% 10.38%
PAT Margin (%) 18.50% 3.13% 3.64%
P/E Ratio 60x 152x 76x
Market Capitalization (₹ Crores) 3,300 47,846 12,000

Recommendation on Quality Power Electrical Equipments Limited IPO:

Lead Manager of Quality Power Electrical Equipments Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Quality Power Electrical Equipments Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Quality Power Electrical Equipments Limited Plot No. L-61, M.I.D.C, Kupwad Block, Sangli – 416 436 Phone: + 91 233 264 543 Email: investorgrievance@qualitypower.co.in Website: http://www.qualitypower.com/

Discussion on Quality Power Electrical Equipments Limited IPO:

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