New Delhi, Dec. 26 -- NSE-listed high voltage electrical equipment maker Quality Power Electrical Equipments Ltd has acquired a controlling 76% stake in Gandhinagar based Veeral Controls Pvt Ltd for Rs. 15.2 crore (around $1.7 million), the company said Friday.
Quality Power said in a release that the acquisition will help expand its presence in the medium voltage industrial power electronics segment and will also help strengthen its capabilities in high current rectification, among other things. High current rectifiers are crucial for production of green hydrogen and for applications in defence, rail and industrial segments, according to the filing.
Founded in 1993 by Varunesh Kumar, an IIT alumnus, Veeral Controls has been working in high current power electronics and industrial power conversion systems for three decades. According to the press statement issued by Quality Power, Veeral Controls specialises in the design and manufacture of high current rectifier systems, locomotive and traction power conversion equipment, and defence grade power electronics.
Quality Power said the acquisition will help it diversify its existing customer base. Veeral Controls serves a diversified customer base including ABB/Hitachi, BHEL, BARC, Indian Railways, Indian Navy, Heavy Water Board, DRDO, Tata Power, Tata Steel, Renew Power among others, with systems supplied across India, Europe, the United States, Australia and the Middle East.
The company said that these technologies complement its existing portfolio of high voltage grid equipment, power quality systems, and flexible AC transmission systems solutions.
Quality Power said that integrating these platforms will help it offer more comprehensive electrical solutions while creating pull through demand for its products including transformers, reactors, harmonic filters, and instrument transformers.
"Veeral's expertise in high current rectifiers and traction and defence power electronics strengthens our ability to serve customers directly at the point of power conversion and expands our relevance across the evolving hydrogen, traction and strategic infrastructure space," said Manu Achuthan, chief marketing officer of Quality Power Group.
The two decade old Quality Power makes reactors, transformers, line traps, instrument transformers, capacitor banks, converters, harmonic filters and reactive power compensation systems.
Following the announcement of the acquisition, Quality Power share price rose 4.01 per cent to an intraday high of Rs.757.10 per share on the NSE. But by the close of trading, it pared most of its gains, ending the day at Rs. 740 per share or 1.6% more than previous closing.
Published by HT Digital Content Services with permission from VC Circle.