Quality Power Electrical Equipments Ltd IPO

Global energy transition and power technology player catering to diverse industry segments and poised to benefit out of global shift towards decarbonisation and adoption of renewable energy.

Demonstrated track record of growth and financial performance for the six-month period ended September 30, 2024 and the last three fiscals.

Diversified customer base of global businesses with long lasting relationships.

Comprehensive product portfolio in the energy transition equipment and power technologies sector in India and abroad with high trade barriers.

Demonstrated record of strategic acquisitions along with enhanced order book contributing to sustainable growth.

Research and development capabilities to offer future ready solutions.

Management team with domain experience.

The company derives majority of its revenue from international markets, which contributed to more than 74.00% of its total revenue during the six-month period ended September 30, 2024 and in each of the last three Fiscals. The company plan to further expand into new geographical regions and may be exposed to significant liability and could lose some or all of its investment in such regions, as a result of which the company business, financial condition and results of operations could be adversely affected.

The company is dependent on the performance of the market for High-Voltage Direct Current (HVDC) and Flexible Alternating Current Transmission Systems (FACTS), which in turn is dependent on a range of social, economic and regulatory factors beyond its control. Any adverse trend in such markets could have a material adverse effect on its business, financial condition, results of operations and cash flows.

Any disruption, breakdown or shutdown of its operating facilities may have a material adverse effect on the company business, financial condition, results of operations and cash flows.

Any shortages, delay or disruption in the supply of the raw materials the company use in its operating process may have a material adverse effect on its business, financial condition, results of operations and cash flows. Further, the costs of the raw materials that the company use in its operating process are subject to volatility. Increases or fluctuations in raw material prices, may have a material adverse effect on its business, financial condition, results of operations and cash flows.

The Company regularly deals in foreign exchange. its inability to handle foreign currency fluctuation risks associated with the company export sales could negatively affect its sales to customers in foreign countries, as well as the company operations and representations in such countries, and its overall profitability.

The company does not have long-term agreements with any of its customers. In order to retain some of the company existing customers its may also be required to offer terms to such customers which the company may place restraints on its resources. The company inability to maintain its customer network in India and globally, and attract additional customers may have a material adverse effect on its results of operations and financial condition.

The company is dependent on its top 10 customers who contribute to more than 52.66% of the company total revenue from operations during the six-month period ended September 30, 2024 and in each of the last three Fiscals and the loss of any of these customers or a significant reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.

Acquisitions, strategic alliances and investments could be difficult to integrate, disrupt its business and lower the company results of operations.

The company is subject to strict quality requirements and any product defect issues or failure by it or the company raw material suppliers or its customers to comply with quality standards may lead to the cancellation of existing and future orders, recalls or exposure to potential product liability claims.

Some of its operating facilities, and the company Registered Office are located on leasehold lands and rental basis. If the company is unable to renew existing leases or relocate its operations on commercially reasonable terms, there may be a material adverse effect on its business, financial condition and operations.