Quality Power Electrical Equipments, a key player in the high-voltage energy equipment sector, has successfully raised INR 386.41 crore from anchor investors ahead of its initial public offering (IPO) subscription. The company finalized the allocation of 90,92,070 equity shares to 21 institutional investors at INR 425 per share on 13 February 2025. The participation of top-tier investors signals strong confidence in the company’s market potential and growth trajectory.
Quality Power Electrical IPO Details
The INR 859 crore IPO opens for subscription on 14 February 2025 and will close on 18 February 2025. The IPO comprises a fresh issue of INR 225 crore and an offer-for-sale (OFS) of 1.49 crore equity shares, amounting to INR 633.7 crore at the upper price band. This substantial offering aims to enhance the company’s financial standing and accelerate its expansion plans.
- Price Band: INR 401 – INR 425 per share
- IPO Size: INR 859 crore
- Lot Size: 26 shares and multiples thereafter
- Listing: NSE & BSE
- Allotment Date: 19 February 2025
- Expected Listing Date: 21 February 2025
Significance of the Anchor Investment
The anchor investment mechanism serves as a crucial pre-IPO process, wherein large institutional investors secure shares before the public offering begins. This infusion of capital provides market validation, often boosting retail investor sentiment. Quality Power’s ability to attract major investment funds underscores its robust business model and industry leadership.
Quality Power Electrical – Anchor Investors and Allocation
Below is the full table of allocation:
| Sr. No | Name of Anchor Investors | No. of Equity Shares Allocated | % of Anchor Investor Portion | Total Amount Allocated (INR Crore) |
|---|---|---|---|---|
| 1 | LIC Mutual Fund (All Schemes Combined) | 11,58,344 | 12.74% | 49.99 |
| 2 | Bank of India Mutual Fund (All Schemes Combined) | 8,23,524 | 9.06% | 34.99 |
| 3 | Maybank Securities PTE Ltd. | 8,23,524 | 9.06% | 34.99 |
| 4 | Bengal Finance & Investments Pvt Ltd | 7,05,900 | 7.76% | 30.00 |
| 5 | India Inflection Opportunity Fund | 5,88,250 | 6.47% | 25.00 |
| 6 | Kotak Iconic Fund | 5,88,250 | 6.47% | 25.00 |
| 7 | Gagandeep Credit Capital Pvt Ltd | 4,94,000 | 5.43% | 20.99 |
| 8 | Mint Focused Growth Fund | 4,70,600 | 5.18% | 20.00 |
| 9 | Shine Star Build-Cap Private Limited | 4,70,600 | 5.18% | 20.00 |
| 10 | VPK Global Ventures Fund – Scheme I | 4,70,600 | 5.18% | 20.00 |
| 11 | Bharat Value Fund | 3,52,950 | 3.88% | 15.00 |
| 12 | Negen Undiscovered Value Fund | 3,52,950 | 3.88% | 15.00 |
| 13 | SBI General Insurance Company Limited | 2,35,274 | 2.59% | 9.99 |
| 14 | LC Pharos Multi Strategy Fund SFI | 2,35,300 | 2.59% | 10.00 |
| 15 | Abans Finance Private Limited | 2,35,300 | 2.59% | 10.00 |
| 16 | Ashika Global Securities Private Limited | 2,35,300 | 2.59% | 10.00 |
| 17 | Stephade Revolution Fund | 2,35,300 | 2.59% | 10.00 |
| 18 | Benani Capital Scheme I | 2,35,300 | 2.59% | 10.00 |
| 19 | Zeta Se esA Fund PC | 2,35,300 | 2.59% | 10.00 |
| 20 | IMAP India Capital Investment Trust – Catalyst New India Fund | 1,27,374 | 1.40% | 5.41 |
| 21 | Universal Sompo General Insurance Company Limited | 1,17,650 | 1.29% | 5.00 |
| Total | 90,92,070 | 100% | 386.41 |
Quality Power Electrical – Utilization of IPO Proceeds
The company plans to utilize the funds raised through the fresh issue for:
- Acquisition of Mehru Electrical and Mechanical Engineers to enhance production capabilities and expand market presence.
- Purchase of plant and machinery to scale production efficiency and technological advancements.
- Inorganic growth opportunities through strategic acquisitions that align with Quality Power’s long-term vision of market leadership.
- General corporate purposes are to support day-to-day operations, future expansions, and strengthening financial stability.
Market Outlook & Competitive Advantage
Quality Power operates in a fast-evolving industry where innovation, efficiency, and scalability are key drivers of growth. The company’s financial track record, strategic acquisitions, and commitment to sustainable energy solutions make it a compelling investment opportunity. The ongoing expansion in India’s energy sector, driven by government initiatives and infrastructural investments, further strengthens the company’s long-term growth prospects.
Conclusion
With a strong industry presence, robust financial performance, and significant anchor investor participation, Quality Power IPO is generating keen interest among investors. The company’s strategic investments, technological advancements, and commitment to innovation position it well in the competitive energy sector. While the valuation appears stretched, long-term investors may find value in the company’s future growth trajectory, especially as it continues to play a crucial role in India’s energy transition and infrastructure development. The strong backing of institutional investors further bolsters confidence in Quality Power’s potential for sustained success in the market.