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Introduction to Danish Power Ltd IPO
Danish Power is set to roll out a Rs 197.90 crore book. It will comprise entirely a fresh issue of 52.08 lakh shares. The firm will be listed only on NSE SME.
Retail investors need to invest a minimum of Rs 114,000. HNI investors need a minimum investment of Rs 228,000 for 600 shares, which is 2 lots.
Link Intime India Private Ltd is the registrar to the issue. Hem Securities Ltd is the book running lead manager in this IPO. The market maker for the same is Hem Finlease.
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Danish Power Ltd IPO GMP
The most recent GMP of the IPO is Rs 290, as of 24th October, 2024 09:45 AM. The IPO has a price band of Rs 380. The estimated listing price for Danish Power Ltd is Rs 670, reflecting a potential gain of 76.32% per share.
Danish Power Ltd Company Details
Danish Power Limited, founded in July 1985, manufactures transformers like inverter duty transformers for solar and wind power projects, along with oil and dry type power and distribution transformers.
Their products include inverter duty transformers, distribution transformers, power transformers, and various control relay panels and automation services.
The company has two manufacturing plants in Jaipur, situated in the Sitapura Industrial Area and Mahindra World City.
As of 31st March, 2024, the company employed 343 full-time staff and also hired personnel on a contractual basis.
Danish Power Ltd IPO Details
| Danish Power Ltd IPO Opening Date and Closing Date | 22nd October to 24th October |
| Face Value | Rs 10 per share |
| Price Band | Rs 360 to Rs 380 per share |
| Lot Size | 300 Shares |
| Total Issue Size | 5,208,000 shares (aggregating up to Rs 197.90 Cr) |
| Fresh Issue | 5,208,000 shares (aggregating up to Rs 197.90 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE SME |
| Shareholding Pre-Issue | 14,483,610 |
| Shareholding Post Issue | 19,691,610 |
| Basis of Allotment | Friday, 25th October, 2024 |
| Refund Initiation | Monday, 28th October, 2024 |
| Credit of Shares in Demat | Monday, 28th October, 2024 |
| Listing Date | Tuesday, 29th October, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 24th October, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Danish Power Ltd lot size, shares, and their value:
| Application | Lots | Shares | Amounts |
| Retail (Min) | 1 | 300 | Rs 114,000 |
| Retail (Max) | 1 | 300 | Rs 114,000 |
| HNI (Min) | 2 | 600 | Rs 228,000 |
Investor categories and Danish Power Ltd shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Danish Power Ltd Financials:
For the period ended on 30th June, 2024 & 31st March, 2024:
| Periods Ended | 30th June, 2024 | 31st Mar, 2024 |
| Assets | Rs 20,639.09 Lakh | Rs 15,977.95 Lakh |
| Revenue | Rs 7,273.29 Lakh | Rs 33,463.84 Lakh |
| Profit After Tax | Rs 998.21 Lakh | Rs 3,807.27 Lakh |
| Net Worth | Rs 9,201.38 Lakh | Rs 8,213.16 Lakh |
| Reserves and Supplies | Rs 7,753.02 Lakh | Rs 8,052.23 Lakh |
| Total Borrowing | Rs 2,393.07 Lakh | Rs 1,011.6 Lakh |
Danish Power Key Performance Indicators (KPI) and their values:
The market capitalisation of Danish Power Ltd IPO is Rs 748.28 crore.
| KPI | Values |
| Return on Equity (ROE) | 11.94% |
| Return on Capital Employed (ROCE) | 12.30% |
| Return on Net Worth (RoNW) | 10.85% |
| PAT Margin (%) | 14.58 |
| Debt/Equity | 0.27 |
Objectives of Danish Power Ltd IPO
The Net Proceeds are intended for the following uses:
- Funding capital expenditures for expanding the company’s manufacturing facility, including building a factory shed and installing additional machinery.
- Meeting working capital needs.
- Repaying part or all of the company’s specific borrowings.
- Supporting general corporate purposes.
Some major risks associated with the Danish Power Ltd IPO are:
- Danish Power relies on a limited number of suppliers for raw materials, making its operations vulnerable to fluctuations in availability and timely procurement, which can harm its finances.
- The company’s products, like transformers and relay panels, are specifically designed for large industries, EPC service providers, and public utilities, creating a dependence on these sectors. A drop in demand could negatively impact operations and financial performance.
- A significant portion of revenue comes from a few customers, with the top 10 contributing 88.04%, 76.75%, and 79.86% in FY24, FY23, and FY22, respectively. Losing these customers could harm revenue generation.
- The company is involved in legal proceedings, and any unfavourable outcomes could negatively affect its business prospects.
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Frequently Asked Questions (FAQs)
What is the price band of Danish Power IPO?
Price band has been fixed at Rs 360 and Rs 380 per share.
What is the retail investor quota of Danish Power IPO?
At least 35% of the shares will be allocated to retail investors.
Where can I track Danish Power’s stock performance?
You can track it on Unicorn Signals after listing.
How can I apply for Danish Power’s Initial Public Offer?
You can apply either through your demat account or via your bank/financial institution during the IPO period.
When is the Last Date of IPO subscription for Danish Power?
The cut-off time is on 24th October, 2024, by 5 PM; however, most brokers do not take any more applications after 1-3 PM.
What is the Listing date for Danish Power’s stock?
Danish Power’s stock is set to be listed on 29th October.
