Shares of Quality Power Electrical Equipment will be listed on the bourses today. The company has fixed the IPO price ₹425, at the upper end of the price band of ₹401-425.
The company had raised ₹225 crore from the IPO, which also had an offer for sale by selling shareholder worth ₹633.70 crore, taking the total issue size ₹858.70-crore
The initial share sale received bids for 1.43 crore shares against 1.11 crore shares on offer. The category for retail investors (RIIs) garnered 1.83 times subscription while the quota for non-institutional investors was subscribed 1.45 times and QIBs 1.03 times subscription.
As part of the IPO, the company on Thursday raised ₹386.41 crore from anchor investors. It has allotted 90.92 lakh shares at ₹425 a share to marquee investors such as LIC Mutual Fund, Bank of India Mutual Fund, Maybank Securities, India Inflection Opportunity Fund, Kotak Iconic Fund, Mint Focussed Growth Fund, Bharat Value Fund, SBI General Insurance Company, Steptrade Revolution Fund, Benani Capital Scheme, Universal Sompo General Insurance Company, and IMAP India Capital Investment Trust
Gets LIC backing
Amongst them, LIC MF, through its eight schemes and Bank of India Mutual Fund, via three schemes, picked 18.82 lakh shares worth ₹80 crore in Quality Power.
Utility of funds
The Maharashtra-based company will use the fresh issue funds to acquire Mehru Electrical and Mechanical Engineers and purchase plant and machinery. The IPO money will also be used for inorganic growth through unidentified acquisitions and general corporate purposes.
Incorporated in 2001, Quality Power provides high-voltage electrical equipment for electrical grid connectivity and energy transition. It specialises in providing power products and solutions across sectors such as power generation, transmission, distribution, and automation. It is among the leading global manufacturers of critical high-voltage equipment for flexible AC transmission systems, and high-voltage direct current, which are vital for transitioning energy from renewable sources to traditional power grids.
