Quality Power Electrical Equipments is a well-known name in India’s power transmission and distribution sector. The IPO is expected to open for subscription from 14 February to 18 February 2025. Is it the next multibagger you are looking for? IPO Central has analyzed the company’s RHP and compiled key insights in the Quality Power IPO review. Let’s dig deeper into the details!
Table of Contents
#1 Offer Details
- Fresh issue: Equity shares aggregating up to INR 225 crore.
- Offer for Sale (OFS): 1,49,10,500 equity shares of INR 633.70 crore from Chitra Pandyan (Selling Shareholder).
The price band is set at INR 401–425 per share, with a lot size of 26 shares (INR 11,050). Pantomath Capital Advisors will manage the Quality Power IPO, while Link Intime India will serve as the registrar.
#2 Shareholding Structure
Before the IPO, promoters hold a 99.99% stake. Major shareholders include:
| No. | Name of the Shareholder | No. of Equity Shares (INR) | Pre-Offer Share capital (%) |
|---|---|---|---|
| 1. | Thalavaidurai Pandyan | 9,860,480 | 13.67 |
| 2. | Chitra Pandyan | 1,49,11,000 | 20.67 |
| 3. | Bharanidharan Pandyan | 2,86,19,480 | 39.66 |
| 4. | Pandyan Family Trust | 1,87,59,000 | 26.00 |
| Total | 7,21,49,960 | 99.99 |
Post-IPO, promoter holdings will reduce, increasing public shareholding and stock liquidity. Institutional investor participation may further strengthen credibility and stability post-listing.
#3 Industry Outlook
The global shift towards clean energy and increased electrification is driving demand for power equipment. In India, the power transmission and distribution sector is expanding, supported by government initiatives such as the Revamped Distribution Sector Scheme (RDSS) and increased infrastructure spending. The sector is moving towards high-efficiency transformers and smart grid solutions, aligning well with Quality Power’s growth strategy.
India’s power sector is expected to attract over INR 50 lakh crore in investments over the next decade, focusing on infrastructure upgrades, renewable energy expansion, and digital transformation. This presents significant growth potential for Quality Power.
#4 Company Overview
Quality Power Electrical Equipments is a key player in the global power technology sector, specializing in high-voltage electrical solutions. The company designs and manufactures advanced equipment for power generation, transmission, distribution, and automation. Its expertise extends to large-scale renewable energy integration, a crucial area in today’s evolving energy landscape.
With over two decades of experience, Quality Power is one of the few global manufacturers of high-voltage systems for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) networks. These technologies ensure efficient, long-distance power transmission while stabilizing grids handling renewable energy sources. The company’s portfolio includes transformers, reactors, line traps, capacitor banks, converters, harmonic filters, and reactive power compensation systems—critical components for modern power networks.
Manufacturing operations are based in Sangli (Maharashtra) and Aluva (Kerala), India, the company extends its reach through Endoks Enerji Anonim Şirketi, its Turkish subsidiary. With a footprint spanning 100 countries, a significant share of revenue comes from international markets, reinforcing its global standing.
A strong advocate for grid modernization and sustainable energy, Quality Power actively supports decarbonization efforts. Its solutions empower utilities, industries, and renewable energy operators, facilitating efficient energy transition and power management worldwide.
#5 Business Model
Quality Power operates on a B2B model, serving power utilities, industrial firms, and infrastructure projects. A key differentiator is its export revenue, which contributed 73% of total revenue in FY24. This geographic diversification shields the company from domestic market fluctuations.
The company’s vertically integrated manufacturing structure provides cost efficiencies and strict quality control. It reduces dependency on third-party suppliers, improving margins and ensuring supply chain resilience. Additionally, long-term agreements with major power firms ensure stable revenue streams and repeat business.
#6 Financial Performance
| FY 2022 | FY 2023 | FY 2024 | H1 FY 2025 | |
| Revenue | 182.64 | 253.25 | 300.60 | 155.74 |
| Expenses | 162.86 | 226.10 | 268.41 | 127.64 |
| Net income | 42.23 | 39.89 | 55.47 | 50.08 |
| Margin (%) | 23.12 | 15.75 | 18.45 | 32.16 |
Revenue and profitability have grown consistently. The IPO proceeds are expected to strengthen financial stability and fuel expansion.
#7 Comparison with Listed Peers
Quality Power competes with Siemens, GE T&D, and Hitachi Energy India. While these firms have broader global operations, Quality Power’s higher export revenue contribution and cost efficiency give it an edge in the growing power transmission segment.
| Company | PE ratio | EPS | RONW (%) | Revenue (Cr.) |
| Quality Power Electrical | 55.28 | 7.69 | 29.15 | 300.60 |
| Transformers & Rectifiers | 219.58 | 3.24 | 8.35 | 1,294.68 |
| Hitachi Energy | 300.81 | 38.64 | 12.04 | 5,237.49 |
| GE T&D India | 222.02 | 7.07 | 14.57 | 3,167.91 |
Quality Power’s strong return on net worth (RONW) and efficient operations position it competitively in the sector.
#8 Utilization of Net Proceeds
- Acquisition of Mehru Electrical & Mechanical Engineers – INR 117.00 crore
- Capital Expenditure (Plant & Machinery Purchase) – INR 27.22 crore
- Inorganic Growth & Strategic Initiatives
#9 Strengths
Diverse Product Portfolio: High-voltage equipment (reactors, transformers, line traps, instrument transformers, capacitor banks, converters, harmonic filters), advanced power technology (HVDC, FACTS), and grid interconnection solutions (STATCOM, SVC) Acquisition of a 51% stake in Mehru Electrical, a global manufacturer of high-voltage and extra-high-voltage instrument transformers (up to 400kV) with NABL-accredited testing labs and a presence in 53 countries, enhances technology integration, product diversification, market expansion, and operational efficiency, driving revenue growth and innovation. Integrated Manufacturing: Cost-efficient and quality-controlled production. Industry Tailwinds: Rising power infrastructure investments. Global Expansion: Presence in high-growth regions (Southeast Asia, Middle East, Africa).
#10 Risks and Challenges – Quality Power IPO Review
Forex and Geopolitical Risks: Exposure to global currency fluctuations. Intense Competition: Established multinational players dominate the industry. Raw Material Cost Volatility: Potential impact on profit margins.
Quality Power IPO Review – Should You Invest?
The company specializes in high-voltage electrical equipment and derives over 80% of its revenue from international markets, providing exposure to high-growth energy infrastructure projects. In H1FY25, QPEEL reported a PAT margin of 32.2%, an ROE of 42%, and an ROCE of 31.7%, indicating strong financial performance. The planned acquisition of Mehru Electrical and Mechanical Engineers is expected to expand QPEEL’s product portfolio and market reach.
However, the acquisition target has lower profit margins, which could dilute overall profitability. Additionally, a significant portion of QPEEL’s income is derived from non-operating sources, such as interest income and forex gains, which may not be sustainable in the long term. Given the company’s robust financial metrics and strategic initiatives, investors with a long-term horizon may consider subscribing to the IPO. However, the current grey market premium and the market conditions suggest limited listing gains, making it less attractive for short-term investors seeking immediate returns.
Conclusion
Quality Power IPO offers a compelling investment case, backed by strong financials, an expanding market, and an export-driven business model. The Quality Power IPO review aims to inform readers about the company’s business, financials, market dynamics, strengths, and risks. It should not be considered investment advice in any form.
Investors should do thorough research and evaluate personal investment goals before applying. Investing wisely requires not only understanding the potential rewards but also being aware of the associated risks in this dynamic sector. Happy Investing!