Shares of Quality Power Electrical Equipments Limited surged nearly 3% after the company announced the acquisition of a 51% equity stake in Mehru Electrical & Mechanical Engineers Pvt. Ltd. for ₹120 crore. The acquisition is a strategic move aimed at enhancing Quality Power’s position in the high-voltage transformer market.
Quality Power Electrical Equipments Limited (QPEEL), a leading manufacturer of high-voltage electrical equipment, has announced the acquisition of a 51% equity stake in Mehru Electrical & Mechanical Engineers Pvt Ltd (MEMEPL). The deal, valued at Rs 120 crore, aims to bolster Quality Power’s technological expertise and expand its global market presence.
The acquisition aligns with Quality Power’s long-term vision to enhance its product portfolio and strengthen its foothold in the power transmission and distribution sector. Mehru Electrical, known for its high-precision instrument transformers, brings valuable expertise in manufacturing Current Transformers (CTs), Potential Transformers (PTs), Inductive Voltage Transformers (IVTs), and Capacitor Voltage Transformers (CVTs).
Key Highlights of the Acquisition:
- Stake Acquired: 51% equity in Mehru Electrical & Mechanical Engineers Pvt Ltd.
- Deal Value: Rs 120 crore through a Share Purchase Agreement.
- Enhanced Capabilities: Mehru specializes in oil-filled and dry-type instrument transformers up to 500kV, complementing Quality Power’s existing product range.
- Global Expansion: Mehru’s established market presence in Southeast Asia and Africa provides new growth avenues for Quality Power.
Following the announcement, Quality Power’s stock price climbed to ₹345.75, reflecting investor optimism over the acquisition’s potential benefits. The company’s total market capitalization now stands at approximately ₹2,677 crore, with strong trading volumes recorded in the session.
