Shares of Quality Power Electrical Equipments Limited moved over 2% higher after the company disclosed a strategic acquisition through its subsidiary, Quality Power Engineering Projects Private Limited. The subsidiary has executed a Share Subscription Agreement and Shareholders Agreement to acquire a 76% equity stake in Veeral Controls Private Limited, strengthening Quality Power’s presence in advanced power electronics.
Following completion of the transaction, Veeral Controls will become a step-down subsidiary of Quality Power Electrical Equipments Limited, with an effective shareholding of 76% along with board-level control. The company made the disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in line with the applicable SEBI circulars.
Veeral Controls Private Limited is registered under the Companies Act, 2013, and operates out of the GIDC Electronics Estate in Gandhinagar, Gujarat. As per the regulatory filing, the company has a paid-up share capital of ₹32 lakh. Its turnover stood at ₹4.19 crore for the financial year ended March 31, 2025, compared with ₹2.94 crore in FY2024 and ₹8.57 crore in FY2023.
The acquired company is engaged in the design, development, and manufacturing of power electronics components and systems, with a core focus on high-current rectifiers and power conversion solutions. These products cater to a wide range of applications, including industrial, railways, nuclear, and defence-related sectors, aligning closely with Quality Power’s existing business segments.
Quality Power clarified that the acquisition does not fall under related party transactions. The promoters, promoter group, and group entities of Quality Power had no prior interest in Veeral Controls before this deal. The company also stated that no governmental or regulatory approvals are required to complete the acquisition.
The entire consideration for the transaction will be paid in cash. The total equity infusion is approximately ₹15.20 crore and will be routed through a primary capital issuance. This amount factors in the value of assets, land, and factory-related costs, resulting in the transfer of 76% of Veeral Controls’ equity share capital.
According to the company, the acquisition is aimed at expanding its technology base in high-current power conversion and rectifier systems, while enabling closer integration with its existing product portfolio.
