The ₹858.70-crore initial public offering (IPO) of Quality Power will open for the public today. The IPO, which will remain open until February 18, comes out with a price band of ₹401-425.
The issue is a mix of fresh issue worth ₹225 crore and offer-for-sale of ₹633.70 crore by selling shareholders. Investors can apply for a minimum lot of 26 shares. The company has reserved 75 per cent of the net offer for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs) and 10 per cent for retail investors.
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.
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.
The Maharashtra-based company will spend the fresh issue funds for the acquisition of Mehru Electrical and Mechanical Engineers, and purchase of plant and machinery. Besides, the IPO money will also be utilised 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 the provision of 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.