DIVINE POWER ENERGY IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

About DIVINE POWER ENERGY Limited

Divine Power Energy Limited is a manufacturer of Bare Copper/ Aluminium Wire, Bare Copper/ Aluminium Strip, Winding Copper/ Aluminium Wire, Winding Copper / Aluminium Strip. Winding wires / strips are manufactured by annealing and insulating wires / strips and covering them with paper, cotton, fiberglass etc. Winding wires/ strips covered with paper, crepe paper and cotton are sold to power distribution companies and transformer manufacturers to manufacture transformers and also to fix normal wear and tear. In the current calendar year their company started manufacturing wires / strips covered with fiberglass which are used in manufacturing electromagnetic coils, like the one used in lifting magnets which are used to lift heavy objects like containers, machinery etc. The Company has supplied wires / strips covered with fiberglass to markets like Punjab, Bengaluru, Ahmedabad. In the recent, past the Company has started trading in super enamelled wires and strips in an effort to cater customer demand and remain competitive.

The Company mainly sells winding wires to the power distribution companies and transformer manufacturers. Transformers play a critical role in power distribution by regulating the voltage from generation source to the consumer end. The transformer steps up the voltages to higher voltages before transmission at the generator, reducing the power loss during transmission and steps down the higher voltage to lower as required before transmitting the power to the end user. One of the critical components of a transformer is its coil which plays the role of converting electric energy to magnetic energy and then to electric energy, and changes the voltage and current at the same time. The coil is made from winding the wires in a given ratio as per the capacity and ability of the transformer. Therefore, making their product indispensable for manufacturing transformers and hence power transmission and distribution.

The Company enjoys the patronage of reputed clients such as TATA Power Limited, Pashchimanchal Vidyut Vitran Nigam Limited, BSES, Madhyanchal Vidyut Vitaran Nigam Limited, Dakshinanchal Vidyut Vitran Nigam Limited, Purvanchal Vidyut Vitaran Nigam Limited, Uttarakhand Power Corporation Limited etc., which ensure stable demand for their products. Also, the Company sources its raw material from reliable and reputed suppliers such as NALCO (through National Small Industries Corporation Limited), Birla Copper (through third party), Hindalco etc. With reliable suppliers, the Company has never faced supply disruption in the past and also aspect the same in the future.

INDIAN ELECTRICAL EQUIPMENT INDUSTRY

The Indian electrical equipment market is projected to reach a value of USD 52.98 billion at a CAGR of 11.68% between 2022 and 2027. The India electrical equipment market is experiencing significant growth due to rapid urbanization and infrastructural development. The market includes various segments such as power distribution equipment, transmission equipment, and generation equipment. India's government initiatives like Make in India have encouraged domestic manufacturing and boosted the electrical equipment sector.

INDIAN POWER INDUDTRY

India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power, to viable non-conventional sources such as wind, solar, agricultural and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.

COPPER
The size of Indian copper industry (consumption of refined copper per annum) is around 6.6 lakh tonnes, which as percentage of world copper market is only three percent. Sterlite Industries, Hindalco Industries and Hindustan Copper Ltd. are major producers of refined copper in India. Production in India has declined significantly due to the permanent closure of Vedanta’s smelter/refinery plant of Tamil Nadu in May 2018.

DIVINE POWER ENERGY LIMITED STRENGTHS

1. Cutting-edge Technology
2. Wide Product Range
3. Customization Capabilities
4. International Accreditations and product approvals

DIVINE POWER ENERGY LIMITED STRATEGIES

1. Strengthen their brand value
2. Expanding their customer base
3. Quality Assurance
4. Continue to improve operating efficiencies through technology enhancements

DIVINE POWER ENERGY LIMITED RISK FACTORS & CONCERNS

1. The Company is dependent on few numbers of customers for sales.
2. The cost of production is exposed to fluctuations in the prices of raw material particularly Copper Rod, Aluminium Rod and insulating material like paper, cotton and fiber glass.
3. The business is largely concentrated in in the states of Punjab and Uttar Pradesh and is affected by various factors associated with these states.
4. The business is dependent and will continue to depend on their manufacturing facilities.
5. The Company is dependent on few suppliers for purchase of product.