DIVINE POWER ENERGY IPO Review

DIVINE POWER ENERGY LIMITED (formerly known as PDRV Enterprises Pvt Ltd) is a leading manufacturer of insulated and bare copper and aluminum wires and strips in India. With a commitment to quality and customer satisfaction, they have been providing superior products to their clients for over 20 years. Their state-of-the-art manufacturing facilities allow them to produce high-quality materials at a competitive price, while their experienced team ensures that every product meets their rigorous standards. 

The Company is backed by strong and professional Promoters named, MR. RAJESH GIRI, MR. VIKAS TALWAR AND MS. DALI GIRI, who have combined experience of more than two decades in the line of Manufacturing of Insulated Wire & Strip and running the company.

Financially, Divine Power Energy revenue increased from ₹12,290.38 Lakhs in FY22 to ₹15,084.20 Lakhs in FY23 and currently jumped to ₹22,272.00 Lakhs in FY24. Similarly, EBITDA increased from ₹571.36 Lakhs in FY22 to ₹1,034.87 Lakhs in FY23 and currently at ₹1,500.50 Lakhs in FY24. The PAT increased from ₹80.51 Lakhs in FY22 to ₹284.94 Lakhs in FY23 and currently at ₹640.59 Lakhs in FY24. This indicates a steady growth in financial performance.

For the Divine Power Energy IPO, the company is issuing shares at a pre-issue EPS of ₹4.06 and a post-issue EPS of ₹2.98. The pre-issue P/E ratio is 9.85x, while the post-issue P/E ratio is 13.42x against the industry P/E ratio of 25.54x. The company's ROCE for FY24 is 16.25%, and ROE for FY24 is 25.06%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Divine Power Energy indicates potential listing gains of 90% - 100% . Given the company's financial performance and the valuation of the IPO, we recommend Investors to apply to the IPO for listing gains or long term Investment purposes.