Danish Power IPO: Price Band ₹360 to ₹380 Per Share

Danish Power Limited, founded in July 1985, manufactures various types of transformers, including inverter duty transformers for renewable power projects, oil and dry type power and distribution transformers, control relay panels, and offers substation automation services. The company operates two manufacturing plants in Jaipur, one located in the Sitapura Industrial Area and the other in Mahindra World City. The Mahindra World City facility is certified for Quality Management System ISO 9001:2015, Environmental Management System ISO 14001:2015, and Occupational Health and Safety Management System ISO 45001:2018.

The Objectives of the Danish Power IPO

The Net Proceeds are proposed to be used for the following purposes:

• Funding capital expenditure towards the expansion of the manufacturing facility by building a factory shed and installing additional plant and machinery
• Meeting working capital requirements
• Repayment of specific borrowings availed by the Company, in part or full
• General Corporate Purposes

Highlights of Danish Power IPO

Danish Power IPO is set to launch with a book-built issue of ₹197.90 crores. The issue is entirely a fresh issue. Here are the key details of the IPO:

• The IPO opens for subscription on 22nd October 2024 and closes on 24th October 2024.
• The allotment is expected to be finalised on 25th October 2024.
• Refunds will be initiated on 28th October 2024.
• Credit of shares to Demat accounts is also expected on 28th October 2024.
• The company will tentatively list on NSE SME on 29th October 2024.
• The price band is set at ₹360 to ₹380 per share.
• The fresh issue comprises 52.08 lakh shares, aggregating to ₹197.90 crores.
• The minimum lot size for the application is 300 shares.
• Retail investors need to invest a minimum of ₹114,000.
• The minimum investment for HNI is 2 lots (600 shares), amounting to ₹228,000.
• Hem Securities Limited is the book running lead manager for the IPO.
• Link Intime India Private Ltd serves as the registrar.

Danish Power IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 24th October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Danish Power IPO Issue Details/Capital History

Danish Power IPO is scheduled from 22nd October to 24th October 2024, with a price band of ₹360 to ₹380 per share and a face value of ₹10. The total issue size is 52,08,000 shares, raising up to ₹197.90 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 1,44,83,610 shares, and the post-issue shareholding will be 1,96,91,610 shares.

Danish Power IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 300 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Danish Power Ltd

Strengths:

• Well-equipped manufacturing facilities
• Long-term relationships with clients
• Diverse product range serving various industries
• Experienced management team
• Quality certifications for manufacturing facilities

Weaknesses:

• Geographical concentration of manufacturing facilities
• Dependence on specific sectors like renewable energy

Opportunities:

• Growing demand for renewable energy solutions
• Potential for expansion into new geographical markets
• Increasing focus on power infrastructure development

Threats:

• Fluctuations in raw material prices
• Intense competition in the transformer manufacturing sector
• Regulatory changes affecting the power and renewable energy industries
• Financial Highlights: Danish Power Ltd
• Below are the consolidated financial results for recent periods:
   

Financial Highlights: Danish Power Ltd

Below are the consolidated financial results for recent periods:

Danish Power Limited has shown significant growth in recent years. Revenue has seen substantial growth, rising from ₹14,917.12 lakh in FY22 to ₹33,463.84 lakh in FY24 (consolidated), marking an impressive increase of 124.3% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹524.88 lakh in FY22 to ₹3,807.27 lakh in FY24 (consolidated), representing a substantial growth of 625.4% over two years.

Net Worth has shown strong growth, increasing from ₹3,387.87 lakh in FY22 to ₹8,213.16 lakh in FY24 (consolidated), which represents an increase of about 142.4% over two years.

Total Borrowings have decreased from ₹2,832.05 lakh in FY22 to ₹1,011.6 lakh in FY24 (consolidated), which represents a decrease of about 64.3% over two years.

The company's financial performance shows a trend of strong revenue growth and significantly improving profitability. The substantial increase in PAT and Net Worth, coupled with a decrease in borrowings, indicate a strengthening financial position. Investors should evaluate these financial trends along with the company's market position and future growth prospects when considering the IPO.