Quality Power Electrical Equipments IPO: Review, Date & GMP

Quality Power Electrical Equipments Limited IPO - Complete Overview 

Quality Power Electrical Equipments Limited IPO a Mainboard IPO is a book-built issue of Rs.858.70 Cr (2,02,04,618 Shares) by Quality Power Electrical Equipments Limited incorporated in 2001.

The company provides high-voltage equipment and grid connectivity solutions for energy transition, bringing its power products across the entire spectrum of generation, transmission, distribution, and automation.

The company manufactures critical high-voltage equipment for High-Voltage Direct Current (HVDC) and Flexible AC transmission systems (FACTS) networks between energy transition from renewable sources to power grids. More than two decades of experience for the company in reactors, transformers, converters, and grid interconnection systems.

In 2011, 51% of Endoks- a Turkey-based subsidiary defined by design, assembly, and project management acquired.

Product:

Harmonic Filters, Transformers, Metal Enclosed Capacitor Banks, Instrument Transformers, Reactors, Line Traps, Line Tuners, Composites and Static VAR Compensators, Shunt Reactors, and Capacitor Banks.

This upcoming IPO is to be available from 14 Feb 2025-18 Feb 2025.

The GMP of IPOs can be viewed on our current IPO GMP page, where you can get the IPO GMP live of open IPOs.

If you want to apply for the IPO, Click to open a Demat account.

 

Detailed Video

 

Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

 

Market-wise Revenue Breakdown

(Amount in millions)

 

Segment-wise Revenue Breakdown

(Amount in millions)

 (Source RHP)

The Objective of the Issue

• For the purchase consideration for Mehru Electrical and Mechanical Engineers Private Limited.

• Financing the company's capital expenditure needs for the acquisition of equipment and plants.

• Financing inorganic expansion through strategic initiatives and unnamed acquisitions

 

Peers of Quality Power Electrical Equipments Limited

 

Evaluation

The IPO price is between Rs.401 to Rs.425 per Share.

Evaluation of P/E Ratio

• Considering the FY ended 31 Mar 2024 with an EPS of Rs.5.19 from the last year, the resulting P/E ratio is 81.89x.
• Considering the weighted EPS of Rs.3.93 for the last three years, the P/E ratio is 108.14x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 267.35x.

In simple words, the P/E ratio of this IPO (81.89x), compared with the industry’s average P/E of 267.35x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• A global transition and electricity technology player serving a multitude of industries and well poised to take advantage of a global shift towards decarbonization and adoption of renewable energy.

• Having a proven record of growth and achievements in finance.

• A diverse customer base has existed through their long association with those competent global companies.

• Complete portfolio in the energy transition equipment and power technologies sector in India and abroad, with high import barriers.

• Steady track record in strategic acquisitions along with enriched order book contributing to growth.

 

IPO’s Weaknesses 

• To meet its commitments, a company must have sufficient cash and accessible funding readily available through committed credit facilities. Liquidity risk arises from business transformations, hence cash inflows and borrowing abilities require constant supervision. 
  
  
• Market prices in the future can affect the value of the financial assets. This includes loss exposure due to various factors like increasing interest rates, foreign exchange rate shifts, etc. 
  
  
• The company must comply with anti-corruption and anti-money laundering laws, therefore, it is legally obligated to transact business in different jurisdictions with their associated legal and regulatory frameworks.

Quality Power Electrical Equipments Limited IPO GMP

GMP of IPO of Quality Power Electrical Equipments Limited is Rs.49 as of 10 Feb 2025.

 

Quality Power Electrical Equipments Limited IPO Timetable (Tentative)

The IPO date is from 14 Feb to 18 Feb, with IPO allotment on 19 Feb, refund initiation on 20 Feb, and listing on 21 February 2025.

 

IPO Other Details 

The IPO with a face value of Rs.10 per Share, offers an IPO size of 2,02,04,618 Shares (Rs.858.70 Cr) and it will be listed at BSE and NSE.

 

Quality Power Electrical Equipments Limited IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (26 Shares) amounting to Rs.11050 and 18 Lots (468 Shares) amounting to Rs.1,98,900 respectively, while for HNI investors, the minimum Lot is 19 (494 Shares) amounting to Rs.2,09,950.

 

IPO Reservation

 

Promoters and Management of Quality Power Electrical Equipments Ltd. 

• Thalavaidurai Pandyan

• Chitra Pandyan

• Bharanidharan Pandyan

• Pandyan Family Trust

 

IPO Lead Managers

• Pantomath Capital Advisors Pvt Ltd.

 

Dividend Policy

No final dividend has been paid by the company in the last three fiscals.

 

Conclusion

There are opportunities in the Quality Power Electrical Equipments Limited IPO from the company, positioned in the rapidly growing renewable energy and high-voltage infrastructure sectors. While the IPO could be regarded as priced reasonably concerning peer companies in the industry, some risks arising from competition within the sector and volatility within international markets need some consideration by investors.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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