THIS IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLY AND IS NOT A PROSPECTUS ANNOUNCEMENT AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE, PURCHASE OR SUBSCRIBE TO SECURITIES. NOT FOR RELEASE. PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY OUTSIDE INDIA.

Initial Public Offer of equity shares on the main board of BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE", and together with BSE, the "Stock Exchanges") compliance with Chapter II of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (SEBIICDR Regulations").

QUALITY POWER ELECTRICAL EQUIPMENTS LIMITED

Our Company was originally incorporated as "Quality Power Electrical Equipments Private Limited', a private limited company under the provisions of the Companies Act, 1956, pursuant to a certificate of incorporation dated September 20, 2001, issued by the Registrar of Companies, Maharashtra at Pune ("RoC"). The name of our Company was subsequently changed to "Quality Power Electrical Equipments Limited" upon the conversion of our Company from a private to a public limited company, pursuant to a board resolution dated March 23,2024, and a fresh certificate of incorporation was issued on June 14, 2024, by the RoC. For details of the change in the registered office of our Company, see '‘History and Certain Corporate Matters - Changes in the registered office of our Company on page 188 of the Prospectus dated February 20,2025.

Our Company has filed the Prospectus with the RoC (the "Prospectus") and the Equity Shares (as defined below) are proposed to be listed on the main board platform of the Stock Exchanges and the trading is expected to commence on February 24, 2025.

INITIAL PUBLIC OFFERING OF 20,204,600 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ("EQUITY SHARES") OF QUALITY POWER ELECTRICAL EQUIPMENTS LIMITED ("OUR COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS 425 PER EQUITY SHARE (INCLUDING A PREMIUM OF RS 415 PER EQUITY SHARE) ("OFFER PRICE") AGGREGATING TO RS 8,586.96 MILLION ("OFFER"). THE OFFER COMPRISES OF A FRESH ISSUE OF 5,294,100 EQUITY SHARES AGGREGATING TO RS 2,249.99 MILLION (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 14,910,500 EQUITY SHARES AGGREGATING TO RS 6,336.96 MILLION BY CHITRA PANDYAN (THE "PROMOTER SELLING SHAREHOLDER") (THE "OFFER FOR SALE"). THE OFFER WILL CONSTITUTE 26.09 % OF OUR POST-OFFER PAID-UP EQUITY SHARE CAPITAL.

1. Risk related to overseas operations: We derive majority of our revenue from international markets, which contributed to more than 74.00% of our total revenue during the six-month period ended September 30, 2024 and n each of the last three Fiscals. We plan to further expand into new geographical regions and may be exposed to significant risk and could lose some or all of our investment in such regions, as a result of which our business, financial condition and results of operations could be adversely affected. The breakdown of our revenue generated from our domestic and international markets, for the relevant financial periods, are indicated in the table below

2. Dependency on the market for Hiah-Voltaae Direct Current ("HVDC") and Flexible Alternating Current Transmission Systems ("FACTS"):

We are 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 our control. Any adverse trend in such markets could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Set out below is the category-wise break-up of our revenue for the six-month period ended September 30, 2024 and for the financial years ended March 31, 2024, 2023 and 2022

(1)Power Products include a range of power products such as reactors, line traps, transformers, and instrument transformers. We also provide line tuners, metal-enclosed capacitor banks, and composites. (2)Power Quality Systems include static VAR compensators (SVC), STATCOMs, harmonic filters, capacitor banks, and shunt reactors.

(3)Includes export incentives, packaging, freight, exchange rate difference, testing, inspection and service & repairs, etc.

3. Dependency on operating facilities: We have a total of seven operating facilities which are located in India at Sangli, Maharashtra, Aluva, Kerala and Turkey at Ankara. The six India based operating facilities are engaged in manufacturing of products and the Turkey based facility is engaged in design, assembly, project management and delivery operations. Any disruption, breakdown or shutdown of our operating facilities may have a material adverse effect on our business, financial condition, results of operations and cash flows.

4. Risk related to shortages, delay or disruption in the supply of the raw materials: Any shortages, delay or disruption in the supply of the raw materials we use in our operating process may have a material adverse effect on our business, financial condition, results of operations and cash flows. While we follow a just-in-time delivery or lean operating process for procurement of our raw materials, the table below indicates details of the number of days' worth of inventory of raw materials and work-in-progress goods that we typically maintain at our facilities.

Further, our operations are dependent upon the price and availability of the raw materials that we require for the production of our products. The following table sets forth the details of our total cost of materials for the periods indicated:

5. Foreign currency fluctuation risk: Our Company regularly deals in foreign exchange. Our inability to handle foreign currency fluctuation risks associated with our export sales could negatively affect our sales to customers in foreign countries, as well as our operations and representations in such countries, and our overall profitability, Our revenue from operations from outside India for the six-month period ended September 30, 2024, and during Fiscals 2024, 2023 and 2022 constituted as follows:

6. Risk due to absence of long-term agreements with any of our customers: We do not have long-term agreements with any of our customers, In order to retain some of our existing customers we may also be required to offer terms to such customers which we may place restraints on our resources, Our inability to maintain our customer network in India and globally, and attract additional customers may have a material adverse effect on our results of operations and financial condition,

7. Customer concentration risk: We are dependent on our top 10 customers who contribute to more than 52,66% of our 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 our business, results of operations and financial condition, The table below sets forth the revenue derived from our top 3 customers, top 5 customers and top 10 customers during the respective financial years:

Acquisitions, strategic alliances and investments could be difficult to integrate, disrupt our business and lower our results of operations. We may enter into select strategic alliances and potential strategic acquisitions that are complementary to our business and operations, including opportunities that can help us further improve our technology system. We have entered into a sale and purchase agreement ("SPA'') with Mehru Electrical and Mechanical Engineers Private Limited ("Mehru") and certain individuals, wherein the Net Proceeds of the Offer will be utilized to acquire 51.00 % stake in Mehru, The proposed acquisition of Mehru is of critical importance to our business, and any failure to complete this transaction would have a substantial adverse effect on our operations and strategic objectives.

We are subject to strict quality requirements and any product defect issues or failure by us or our raw material suppliers or our customers to comply with quality standards may lead to the cancellation of existing and future orders, recalls or exposure to potential product liability claims.

We are highly dependent on our skilled personnel for our day-to-day operations. The loss of or our inability to attract or retain such persons have a material adverse effect on our business performance. The following table sets forth the attrition rate of the years/period indicated:

11. Risk related to Objects of the Offer: There is a lack of specificity around one of the proposed objects of the Offer and we have not specifically earmarked the use of the Net Proceeds under the head of the objects of the Offer. Our Company proposes to deploy a certain portion from the balance Net Proceeds towards funding of unidentified acquisitions and investments in a manner as approved by our Board from time to time. Inability to finalize such activities in a timely manner may delay our deployment of the Net Proceeds and adversely affect our business and future growth.

13. The Price/Earnings Ratio based on diluted EPS for the Financial Year 2024 for the Company at the higher end of the Price Band is as high as 81.89 times and at the lower end of the Price Band is 77.26 times as compared to the average industry peer group PE ratio of 267.35 times.

14. The average cost of acquisition of Equity Shares held by the Promoter Selling Shareholder as on date of the Prospectus is Rs 0.02 per Equity Share, and the Offer Price at upper end of the Price Band is Rs 425.

15. Weighted average return on net worth for Fiscals 2024, 2023 and 2022 is 26.53%.

16. The BRLM associated with the Offer has handled 10 public issues (Main Board-6, SME Issue-4) during the past three financial years preceding the current financial year, none of issues were closed below the Offer price on the listing date.

The Offer was made in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBIICDR Regulations. This Offer was made through the Book Building Process in accordance with Regulation 6(2) of the SEBI ICDR Regulations wherein not less than 75% of the Offer was made available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs") (the "QIB Portion"), provided that our Company in consultation with the BRLM allocated up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (the ‘Anchor Investor Portion"). One-third of the Anchor Investor Portion was reserved for domestic Mutual Funds, subject to valid Bids having been received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price in accordance with the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares were added to the QIB Portion (other than Anchor Investor Portion) ("Net QIB Portion"). Further, 5% of the Net QIB Portion was made available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion was made available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids having been received at or above the Offer Price. However, if the aggregate demand from Mutual Funds was less than 5% of the Net QIB Portion, the balance Equity Shares was made available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. Further, (a) not more than 15% of the Offer was made available for allocation to Non-lnstitutional Investors (out of which one third shall were reserved for Bidders with Bids exceeding Rs 0.20 million up to Rs 1.00 million and two-thirds were reserved for Bidders with Bids exceeding Rs 1.00 million) and (b) not more than 10% of the Offer was made available for allocation to Retail Individual Investors (RIIs') in accordance with the SEBI ICDR Regulations, subject to valid Bids having been received from them at or above the Offer Price. All potential Bidders, other than Anchor Investors, were mandatory required to participate in the Offer through the Application Supported by Blocked Amount ("ASBA") process by providing details of their respective ASBA Account (as defined hereinafter) and UPI ID in case of UPI Bidders (defined hereinafter), which were blocked by the Self Certified Syndicate Banks ("SCSBs") or the Sponsor Banks, as the case may be, to the extent of their respective Bid Amounts. Anchor Investors were not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see "Offer Procedure" on page 359 of the Prospectus.

The bidding for Anchor Investor opened and closed on Thursday. February 13, 2025. The company received 30 applications from 21 anchor investors for 9,788,246 equity shares. The Anchor investor price was finalized at Rs 425 per Equity Share. A total of 9,092,070 shares were allocated under the Anchor Investor Portion aggregating to Rs 3,864,129,750/-

The Offer received 1,01,696 applications for 2,40,88,454 Equity Shares (prior to rejections) resulting in 1.19 times subscription. The details of the applications received in the Offer from various categories are as under: (before rejections):

A summary of the final demand as per NSE and BSE as on the Bid/Offer Closing Date as at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE on February 20, 2025.

The Basis of Allotment to the Retail Individual Bidders, who have bid at the Cut-Off Price or at the Offer Price of Rs 425 per Equity Share, was finalized in consultation with the NSE. This category has been subscribed to the extent of 1.3634 times. The total number of Equity Shares Allotted in Retail Portion is 2,541,734 Equity Shares to 93,956 successful Retail Individual Bidders. The category-wise details of the Basis of Allotment are as under:

The Basis of Allotment to the Non-lnstitutional Bidders (more than Rs 0.20 million Up to Rs 1.00 million), who have bid at the Offer Price of Rs 425 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 0.7563 times. The total number of Equity Shares allotted in this category is 764,062 Equity Shares to 1,341 successful applicants. The category-wise details of the Basis of Allotment are as under:

The Basis of Allotment to the Non-lnstitutional Bidders (more than Rs 1.00 million), who have bid at the Offer Price of Rs 425 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 0.7796 times. The total number of Equity Shares allotted in this category is 1,575,236 Equity Shares to 576 successful applicants. The category-wise details of the Basis of Allotment are as under:

Allotment to QIBs, who have Bid at the Offer Price of Rs 425 per Equity Share or above, has been done on a proportionate basis in consultation with the NSE. This category has been subscribed to the extent of 0.9340 times of QIB Portion. The total number of Equity Shares Allotted in the QIB Portion is 6,231.498 Equity Shares, which were allotted to 18 successful QIB Investors. The category-wise details of the Basis of Allotment are as under:

The Company, in consultation with the BRLM, have allocated 9,092,070 Equity Shares to 21 Anchor Investors (through 30 Applications) at the Anchor Investor Offer Price of Rs 425 per Equity Share in accordance with the SEBI Regulations. This represents 60% of the QIB Portion.

The IPO Committee of our Company on February 20, 2025 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum-lntimations and/ or notices will be dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Issue Account have been issued on February 20, 2025 and payment to non- Syndicate brokers have been issued on February 21,2025. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares Allotted to the successful Allottees have been uploaded on February 21, 2025 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing application with BSE and NSE on February 21,2025. The Company has received listing and trading approval from BSE and NSE and the trading will commence on or about February 24, 2025.

Note: All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

This is in relation to the Red Herring Prospectus dated February 6, 2025 ("RHP") issued in relation to the Offer.

Attention of the investors is draw to the following:

(a) In the section entitled "Summary of the Offer Document - Summary of Related Party Transactions" on page 18 of the RHP, the information is to be read as under:

A summary of related party transactions (post inter-company eliminations) as per Ind AS 24 - Related Party Disclosures, read with the SEBI ICDR Regulations entered into by our Company for the six-month period ended September 30, 2024 and the financial years ended March 31, 2024, 2023 and 2022, as per Ind AS 24 - Related Party Disclosures read with SEBI ICDR Regulations and derived from the Restated Consolidated Financial Information are as set forth below:

(in Rs million)

For details of the related party transactions, see "Restated Consolidated Financial Information - Note 39 - Related Party Transactions" on page 275. (b) In the section entitled "Capital Structure - Build-up of the Promoters' shareholding in our Company on page 71 of the RHP, the information is to be read as under:

The build-up of the Equity Shareholding of our Promoters since incorporation of our Company is set forth in the table below.

(c) In the section entitled "Restated Consolidated Financial Information - Notes forming part of the Restated Consolidated Financial Information

- 5. Capital Work In Progress" on page 247 of the RHP, the information is to be read as under:

(Amount in INR millions)

(d) In the section entitled "Restated Consolidated Financial Information - Notes forming part of the Restated Consolidated Financial Information

- 31. Employee Benefit Expense" on page 267 of the RHP, the information is to be read as under:

(Amount in INR millions)

(e) In the section entitled "Restated Consolidated Financial Information - Notes forming part of the Restated Consolidated Financial Information

- 39. Related Party Transactions' on page 275 of the RHP, the information is to be read as under:

(ii) Transactions with Related Parties

The following transactions occurred with related parties

(Amount in INR millions)

(f) In the section entitled "Restated Consolidated Financial Information - Notes forming part of the Restated Consolidated Financial Information

- 40. Segment Reporting" on page 277 of the RHP, the information is to be read as under:

Information reported by the management, the allocation of resources and assessment of segment performance are focused on the types of goods or services delivered or provided. The Company is in the business of manufacture and sale of electric equipments, which in the context of Indian Accounting Standard 108 ‘Operating Segment' represents a single reportable business segment.

The revenues, total expenses and net profit as per the Statement of profit and loss represent the revenue, total expenses and the net profit of the sole reportable segment

The company is domiciled in India. The amount of its revenue from external customers and receivable broken down by location of the customers is shown in the table below:

(g) In the section entitled "Restated Consolidated Financial Information - Notes forming part of the Restated Consolidated Financial Information

- 42. Fair Value Measurements" on page 279 of the RHP, the information is to be read as under:

(h) In the section entitled "Management's Discussion and Analysis of Financial Position and Results of Operations - Comparison of the Results of Operations - Fiscal 2024 Compared to Fiscal 2023 - Employee benefits expense' on page 314 of the RHP. the information is to be read as under:

Directors remuneration and other benefits increased by 44.88 % to Rs 79.96 million for Fiscal 2024 from Rs 55.19 million for Fiscal 2023, primarily due to increase in remuneration of directors. Salaries, wages, bonus, etc. increased by 18.14 % to Rs 148.64 million for Fiscal 2024 from Rs 125.82 million for Fiscal 2023, primarily due to salary increments and recruitment of new employees in higher salary range. Contribution to provident and other funds increased by 0.91 % to Rs 3.33 million for Fiscal 2024 from Rs 3.30 million for Fiscal 2023, primarily due to higher contribution arising from increase in number of employees and salary increments. Defined benefit obligation - gratuity expense decreased by 57.26 % to Rs 2.56 million for Fiscal 2024 from Rs 5.99 million for Fiscal 2023, primarily due to relatively higher number of employees leaving during the year. Staff and labour welfare expenses increased by 26.72 % to Rs 13.09 million for Fiscal 2024 from Rs 10.33 million for Fiscal 2023, primarily due to costs incurred on labour related expenses on refreshments and performance incentives.

(i) In the section entitled "Management's Discussion and Analysis of Financial Position and Results of Operations - Comparison of the Results of Operations - Fiscal 2023 Compared to Fiscal 2022 - Employee benefits expense" on page 316 of the RHP, the information is to be read as under:

Directors remuneration and other benefits increased by 16.68 % to Rs 55.19 million for Fiscal 2023 from Rs 47.30 million for Fiscal 2022, primarily due to increase in remuneration of directors. Salaries, wages, bonus, etc. increased by 28.65 % to Rs 125.82 million for Fiscal 2023 from Rs 97.80 million for Fiscal 2022, primarily due to increase in number of employees and salary increments. Contribution to provident and other funds increased by 21.77 % to Rs 3.30 million for Fiscal 2023 from Rs 2.71 million for Fiscal 2022, primarily due to increase in number of employees and salary increments. Defined benefit obligation - gratuity expense increased by 73.62 % to Rs 5.99 million for Fiscal 2023 from Rs 3.45 million for Fiscal 2022, primarily due to increase in number of employees and salary increments. Staff and labour welfare expenses decreased by 29.87% to Rs 10.33 million for Fiscal 2023 from Rs 14.73 million for Fiscal 2022 because of expenses incurred on a one-off non-recurring event in 2022.

(j) In the section entitled "Section IX- Other Information - Material Contracts and Documents for Inspection - Material Documents" on page 420 of the RHP, the information is to be read as under:

16. Share purchase agreement dated April 25, 2024, between Mehru Electrical and Mechanical Engineers Private Limited Sudhir Prakash Sharma, Asha Sharma, Sandeep Prakash Sharma, Mandeep Prakash Sharma, Monica Sharma and our Company.

27. Tripartite agreement dated June 5, 2024, amongst our Company, CDSL and the Registrar to the Offer.

The information in this Corrigendum supersedes the information in the RHP, to the extent inconsistent with the information in the RHP.

All capitalized terms used but not defined herein shall have the respective meanings ascribed to them under the RHP.

The details of the allotment made will be hosted on the website of the Registrar to the Offer, MUFG Intime India Private Limited at www.linkintime.co.in

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address given below:

	MUFG INTIME INDIA PRIVATE LIMITED
	(FORMERLY KNOWN AS LINK INTIME INDIA PRIVATE LIMITED)
	C 101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli West,
	Mumbai - 400 083, Maharashtra, India
	Telephone: +91 810 811 4949; E-mail: qualitypower.ipo@linkintime.co.in
	Investor Grievance Email: qualitypower.ipo@linkintime.co.in;
	Website: www.linkintime.co.in
	Contact Person: Shanti Gopalkrishnan;
	SEBI Registration No.: INR000004058

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF QUALITY POWER ELECTRICAL EQUIPMENTS LIMITED.

QUALITY POWER ELECTRICAL EQUIPMENTS LIMITED has filed the Prospectus with RoC and the Stock Exchanges on February 20, 2025. The Prospectus shall be available on the website of SEBI at www.sebi.gov.in, the websites of the Stock Exchanges i.e. BSE and NSE at www.bseindia.com and www.nseindia.com, respectively, the website of the Company at www.qualitypower.com and on the website of the Book Running Lead Manager ("BRLM"). i.e. Pantomath Capital Advisors Private Limited at www.panthomathgroup.com Any potential investors should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see "Risk Factors" beginning on page 22 of the Prospectus.

This announcement is not an offer of securities for sale in the United States or elsewhere. This announcement has been prepared for publication in India only and is not for publication or distribution, directly or indirectly, in or into the United States. The Equity Shares offered in the Offer have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold only outside the United States in "offshore transactions" as defined in, and in reliance on, Regulation S under the U.S. Securities Act and applicable laws of the jurisdictions where such offers and sales occur. The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be issued or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.