Quality Power Electrical Equipments Limited has informed stock exchanges that its subsidiary, Quality Power Engineering Projects Private Limited, has executed a Share Subscription Agreement and Shareholders Agreement for the acquisition of 76% equity shares of Veeral Controls Private Limited.
After completion of the transaction, Veeral Controls Private Limited will become a step-down subsidiary of Quality Power Electrical Equipments Limited, with an effective shareholding of 76 percent and board-level control. The disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the relevant SEBI circular.
Veeral Controls Private Limited is registered under the Companies Act, 2013 and has its registered office at GIDC Electronics Estate, Gandhinagar, Gujarat. The company has a paid-up share capital of ₹32 lakh. As per the disclosure, its turnover stood at ₹4.19 crore for the financial year ended March 31, 2025. The reported turnover for the previous two years was ₹2.94 crore in FY2024 and ₹8.57 crore in FY2023.
The acquired entity operates in the design, development, and manufacturing of power electronics components and systems, with a focus on high-current rectifiers and power conversion systems. Its products are used in industrial, rail, nuclear, and defence-related applications.
The acquisition does not fall within the scope of related party transactions. As stated by the company, the promoters, promoter group, and group companies of Quality Power do not have any interest in Veeral Controls Private Limited prior to this transaction. No governmental or regulatory approvals are required for completing the acquisition.
The consideration for the acquisition is entirely in cash. The total equity infusion under the transaction is approximately ₹15.20 crore, routed through primary capital issuance. This amount includes the value of assets, land, and factory-related costs. The acquisition results in the transfer of 76 percent of the equity share capital of Veeral Controls Private Limited.
According to the company, the objective of the acquisition is to expand its technology base in high-current power conversion and rectifier systems and to align these capabilities with its existing product lines. The indicative timeline for completion of the acquisition will be in accordance with the terms specified in the Share Subscription Agreement and Shareholders Agreement.
