Quality Power IPO

india

india

Quality Power Electrical Equipments Ltd. (QPEEL) is a prominent player in the energy transition and power technology sector, specializing in high-voltage electrical equipment and solutions for grid connectivity and energy transitions. The company offers a comprehensive range of products and services, including power generation, transmission, distribution, and automation, with a strong emphasis on renewable energy applications. Founded in 2001, QPEEL has established itself as a key supplier of critical high-voltage equipment for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) to global clients. The company’s manufacturing facilities are strategically located in Sangli, Maharashtra, and Aluva, Kerala, with an additional facility in Ankara, Turkey, acquired through the purchase of Endkos. citeturn0search4

Quality Power IPO Overview

QPEEL launched its Initial Public Offering (IPO) to raise capital for expansion and to enhance its market presence. The IPO comprises both a fresh issue and an offer for sale (OFS), with the fresh issue valued at ₹225 crore. The OFS portion includes 1.2 crore equity shares offered by promoter Chitra Pandyan. The price band for the IPO is set between ₹401 and ₹425 per share. citeturn0search0

Quality Power IPO Subscription Status

The IPO subscription period commenced on February 14, 2025, and concluded on February 18, 2025. As of the final day, the issue was subscribed 1.29 times, with bids received for 1,43,31,330 shares against 9,14,23,354 shares on offer. The retail investor segment was subscribed 1.49 times, the non-institutional investor segment 1.23 times, and the qualified institutional buyer (QIB) segment 74%. citeturn0search0

Quality Power IPO Grey Market Premium (GMP)

In the unlisted market, the shares of QPEEL were trading at a Grey Market Premium (GMP) of ₹0 on February 18, 2025, indicating a nil premium over the upper end of the IPO price band of ₹425. This reflects a decline from the previous day’s GMP of ₹5, attributed to weak subscription status and negative market sentiments. citeturn0search1

Quality Power IPO Key Dates

• IPO Open Date: February 14, 2025
• IPO Close Date: February 18, 2025
• Basis of Allotment: February 19, 2025
• Refunds: February 20, 2025
• Credit to Demat Account: February 20, 2025
• IPO Listing Date: February 21, 2025

Quality Power IPO Financial Performance

For the first half of the fiscal year 2024-25, QPEEL reported total income of ₹182.72 crore and a net profit of ₹50.08 crore. Approximately 80.7% of the company’s revenue is derived from global markets, underscoring its strong international presence. The company benefits from significant other income through net monetary gains, primarily from dollar hedging, contributing to its higher profit after tax (PAT) relative to earnings before interest, taxes, depreciation, and amortization (EBITDA). citeturn0search0

Quality Power IPO Peer Comparison

QPEEL’s listed peers include Transformers & Rectifiers (India) Ltd., Hitachi Energy India Ltd., and GE Vernova T&D India Ltd. These companies have price-to-earnings (P/E) ratios of 251.51, 308.63, and 241.90, respectively. In comparison, QPEEL’s IPO is priced at a P/E ratio of 81x based on FY24 earnings, which is significantly lower than the peer average, partly due to multinational corporations reporting profits in their home markets and supply-demand imbalances spread across geographies. citeturn0search0

Quality Power IPO Investment Considerations

Analysts have varied perspectives on the IPO. Canara Bank Securities views QPEEL’s issue as attractively priced, noting that the company is available at a P/E ratio of 81x based on FY24 earnings, significantly lower than the listed peer average of 276x. They attribute this to the company’s over two decades of experience in the energy transition sector and its wide range of products and solutions, positioning it well to benefit from the rising demand for energy transition equipment. Consequently, they assign a “SUBSCRIBE” rating to the issue. citeturn0search0

Conversely, GEPL’s insights suggest that the company is overvalued compared to its earnings growth, recommending an “Avoid” rating for the issue. They highlight that, based on the FY24 earnings relative to the company’s post-IPO paid-up equity capital, the issue is priced at a P/E ratio of 59x, which they believe is high given the company’s earnings growth. citeturn0search0

Quality Power IPO Conclusion

QPEEL’s IPO has garnered significant interest, with the issue subscribed 1.29 times on the final day. The company’s strong financial performance, extensive global presence, and comprehensive product portfolio in the energy transition sector make it a noteworthy entity in the power technology industry. Potential investors should consider the varied analyst perspectives and conduct thorough due diligence before making investment decisions.