by Quality Power Electrical Equipments Limited is launching its Initial Public Offering (IPO) to raise funds for expansion and strategic initiatives. Here’s a concise overview to help investors understand the key details:
IPO Details:
- Subscription Period: February 14 to February 18, 2025.
- Price Band: ₹401 to ₹425 per share.
- Lot Size: 26 shares per lot. Minimum investment of ₹10,426.
- Issue Size: Total of ₹858.70 crore, comprising a fresh issue of ₹225 crore and an offer for sale of ₹633.70 crore.
Company Overview:
- Industry: Specializes in high-voltage electrical equipment and solutions.
- Products: Offers equipment for power generation, transmission, and distribution, including solutions for renewable energy integration.
- Global Reach: Serves clients worldwide, including Fortune 500 companies.
Financial Highlights:
- Total Revenue: ₹331.40 crore in FY 2023-24.
- Profit After Tax: ₹55.47 crore in FY 2023-24.
- Net Worth: ₹190.33 crore as of March 31, 2024.
Utilization of IPO Proceeds:
- Acquisition of Mehru Electrical and Mechanical Engineers.
- Funding capital expenditure for new plant and machinery.
- Pursuing strategic acquisitions and initiatives.
Key Dates:
- Allotment Finalization: February 19, 2025.
- Refund Initiation: February 20, 2025.
- Shares Credited to Demat Accounts: February 20, 2025.
- Listing Date: February 21, 2025.
Investment Considerations:
- Growth Potential: Positioned to benefit from the global shift towards renewable energy and infrastructure modernization.
- Financial Performance: Demonstrated consistent revenue and profit growth.
- Risk Factors: Investors should consider market competition and the company’s ability to integrate acquisitions effectively.
Analyst Recommendations:
- StoxBox: “Given its strong financial growth and diverse product portfolio, we recommend a ‘SUBSCRIBE’ rating for medium to long-term investment.”
- Mehta Equities: “We believe QPEEL is well-positioned to capitalize on India’s evolving energy landscape. Hence, we recommend investors to ‘SUBSCRIBE’ for a long-term perspective.”
Grey Market Premium (GMP):
- As of February 14, 2025, the GMP is ₹14, indicating a modest premium over the upper price band.
How to Apply:
- Investors can apply through ASBA (Applications Supported by Blocked Amount) via their bank’s net banking services or through their stockbroker’s platform.
- Ensure that you have a valid DEMAT account and sufficient funds in your bank account to cover the application amount.
- If you do not have DMAT, You can open Free DMAT A/c from Dhan by Clicking here.
Final Thoughts:
Quality Power Electrical Equipments Limited’s IPO presents an opportunity to invest in a company at the forefront of electrical infrastructure and renewable energy solutions. Potential investors should assess the company’s growth prospects and associated risks before making an investment decision.
Here are some Frequently Asked Questions (FAQs) about the Quality Power Electrical Equipments IPO:
1️⃣ What is the IPO subscription period?
📅 The IPO opens on February 14, 2025, and closes on February 18, 2025.
2️⃣ What is the price band of the IPO?
💰 The price band is set between ₹401 to ₹425 per share.
3️⃣ What is the minimum investment required?
📦 The lot size is 26 shares per lot, so the minimum investment is ₹10,426 at the lower price band.
4️⃣ When will the shares be listed on the stock exchange?
📈 The shares will be listed on February 21, 2025, on both BSE & NSE.
5️⃣ How will the IPO funds be used?
💡 The company plans to use the funds for:
- Acquisition of Mehru Electrical and Mechanical Engineers
- Expansion of manufacturing facilities
- Strategic business initiatives
6️⃣ What is the financial strength of Quality Power Electrical Equipments?
📊 The company reported:
- Revenue: ₹331.40 crore (FY 2023-24)
- Profit After Tax: ₹55.47 crore
- Net Worth: ₹190.33 crore
7️⃣ How can I apply for the IPO?
📝 You can apply through:
- ASBA (via net banking of your bank)
- UPI-based applications via broker platforms like Zerodha, Upstox, and Groww
8️⃣ What is the Grey Market Premium (GMP) for this IPO?
📌 As of February 14, 2025, the GMP is ₹14, meaning a modest demand in the grey market.
9️⃣ Is this IPO a good investment?
✔️ Analysts from StoxBox and Mehta Equities have recommended a SUBSCRIBE rating for long-term investment due to the company’s strong financials and industry growth potential.
🔟 What are the risks involved in this IPO?
⚠️ Potential risks include:
- Market competition in the electrical equipment sector
- Successful integration of acquisitions
- Dependence on infrastructure and power sector growth
📢 Final Tip: Always conduct your own research or consult a financial advisor before investing in any IPO! 📊💡
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