Quality Power Shares Surge 11% After Acquiring Majority Stake in Mehru for ₹120 Crore

Quality Power Electrical Equipments has acquired a 51% stake in Mehru Electrical and Mechanical Engineers for ₹120 crore, strengthening its technological capabilities, manufacturing scale, and global market presence. Mehru, a leading manufacturer of high-voltage instrument transformers, will help expand Quality Power’s portfolio and reach in Southeast Asia and Africa. Following the announcement, Quality Power’s stock surged nearly 11%, reaching an intraday high of ₹374.30 on the NSE.

The company acquired 5,22,750 equity shares of Mehru at ₹2,295.55 per share. This acquisition aligns with Quality Power’s IPO strategy and reinforces its leadership in high-voltage equipment solutions. Mehru’s expertise in oil-filled and dry-type transformers up to 500kV enhances Quality Power’s offerings in HVDC, FACTS, and grid stability markets, which have high entry barriers. Listed on the stock market on February 24, 2025, at ₹432 per share, Quality Power continues to grow, reporting ₹50.08 crore net profit and ₹155.74 crore revenue for the six months ending September 2024.

Quality Power Shares Surge 11% After Acquiring Majority Stake in Mehru for ₹120 Crore

Quality Power Expands Market Reach with Strategic Acquisition of Mehru Electrical: Newly listed Quality Power Electrical Equipments has bolstered its position in the power sector by acquiring a 51% majority stake in Mehru Electrical and Mechanical Engineers Private Limited (MEMEPL) for ₹120 crore. The deal, executed through a share purchase agreement, grants Quality Power 5,22,750 equity shares of MEMEPL at ₹2,295.55 per share, valuing the transaction at ₹120 crore.

Strategic Synergy and Innovation

The acquisition aligns with Quality Power’s vision to enhance its technological capabilities and global footprint. MEMEPL, a prominent manufacturer of high-voltage instrument transformers (up to 500kV), reported a turnover of ₹219.34 crore in FY24 and supplies utilities, industries, and power transmission networks. By integrating MEMEPL’s expertise in oil-filled and dry-type transformers, Quality Power aims to strengthen its portfolio, which includes shunt reactors, power transformers, and FACTS solutions. The collaboration is expected to drive innovation in smart grid technologies and digital integration, addressing rising demand for renewable energy infrastructure and grid stability.

Bharanidharan Pandyan, Joint Managing Director of Quality Power, emphasized the strategic fit: “Combining MEMEPL’s advanced instrument transformer technology with our manufacturing scale and global supply chain will position us as a leader in high-precision electrical solutions.” He noted the acquisition supports goals outlined in Quality Power’s recent IPO, focusing on technological advancement and market expansion.

Market Response and Financial Performance

Following the announcement on March 7, 2025, Quality Power’s shares surged nearly 11%, reaching an intraday high of ₹374.30 on the NSE. The stock later settled at ₹362.20, reflecting a 7.13% gain. This uptrend mirrors investor confidence in the company’s growth strategy.

Quality Power, which debuted on the stock market in February 2025, listed at ₹432—a 1.65% premium to its IPO price of ₹425. The IPO was subscribed 1.29 times, underscoring market interest. For the six months ending September 2024, the company posted a consolidated net profit of ₹50.08 crore and revenue of ₹155.74 crore.

Global Expansion and Future Outlook

MEMEPL’s established presence in Southeast Asia and Africa is expected to accelerate Quality Power’s international growth. The acquisition positions the combined entity to cater to global infrastructure projects and utilities, particularly in regions prioritizing energy transition and grid modernization.

As a specialist in HVDC and FACTS technologies, Quality Power aims to leverage this partnership to deliver cutting-edge solutions, reinforcing its role in the evolving power equipment sector. The move underscores its commitment to innovation and regulatory-compliant energy solutions, critical in a market increasingly driven by renewable integration and smart grid demands.

About Quality Power

Listed in February 2025, Quality Power Electrical Equipments is a leading manufacturer of high-voltage solutions for power transmission and grid stability, serving clients worldwide with a focus on precision engineering and advanced technologies.