Danish Power Limited has established itself as a key player in the power equipment manufacturing sector, gaining recognition for its quality-conscious approach and robust export footprint. With a commitment to building a legacy, the company continues to shape its future by fostering an organization that not only meets customer expectations but also embraces emerging challenges in the industry.

IPO Details

The Danish Power IPO is a Book Built Issue amounting to ₹197.90 crores, consisting entirely of a Fresh Issue of 52.08 Lakh Shares. The subscription period for the IPO is open from October 22, 2024, to October 24, 2024. Investors can expect the allotment to be finalized on October 25, 2024, with the tentative listing date set for October 29, 2024, on the NSE SME.

The price band for the Danish Power IPO is set at ₹360 to ₹380 per share, with a minimum lot size of 300 shares. Retail investors are required to invest a minimum of ₹1,14,000, while High-Net-Worth Individuals (HNIs) need to invest in 2 lots, amounting to ₹2,28,000.

Lead Managers and Market Makers

HEM SECURITIES LIMITED is the book-running lead manager for the IPO, with Link Intime India Private Limited serving as the registrar. Hem Finlease Private Limited will act as the Market Maker for this offering.

Danish Power Limited IPO GMP Today

The Grey Market Premium (GMP) for Danish Power Limited IPO is expected to be around ₹120, reflecting investor confidence based on the company’s financial performance. It is essential to note that no real trading takes place based on the GMP, and therefore, price discovery cannot be made until the shares are listed on the stock exchange. The GMP is purely indicative of demand and supply in an unorganized market, and its mention is for informational purposes only.

Live Subscription Status

The Danish Power IPO will open for subscription on October 22, 2024. Investors can track the real-time subscription status and updates on the NSE website throughout the subscription period.

Allotment Process

The Danish Power IPO allotment date is scheduled for October 25, 2024. Investors can check the allotment status online by following these steps:

Visit the IPO allotment status page.

Select Danish Power Limited IPO from the dropdown menu.

Enter your application number, PAN, or DP Client ID.

Submit the information to view your allotment status.

By following these steps, investors can quickly determine their allotment and take further actions regarding their investments.

Objectives of Danish Power Limited IPO

The proceeds from the Danish Power IPO will be used for several key purposes:

₹3,699.47 lakhs will be allocated for capital expenditure to expand the company’s manufacturing facility, including the construction of a factory shed and the installation of additional plant and machinery.

₹8,500 lakhs will be used to meet the company’s working capital requirements.

₹2,000 lakhs will be utilized for the repayment of certain outstanding borrowings.

Remaining funds will be used for general corporate purposes.

Financial Performance

Danish Power’s financial performance for the fiscal year 2024 reflects strong growth. The company’s revenues from operations stood at ₹33,463.84 lakhs, with EBITDA reaching ₹5,371.14 lakhs. The Profit after Tax (PAT) for the same period was ₹3,807.27 lakhs. These figures demonstrate Danish Power's ability to generate consistent revenues while maintaining profitability.

For the Danish Power IPO, the company is offering shares at a pre-issue EPS of ₹26.29 and a post-issue EPS of ₹19.33. The pre-issue P/E ratio is 14.45x, and the post-issue P/E ratio stands at 19.65x, compared to an industry P/E ratio of 48.14x. Furthermore, the company’s ROCE for FY24 is an impressive 56.98%, while the RoE for the same period is 60.35%. These metrics indicate that the IPO is fairly priced, offering attractive growth prospects for investors.

Promoters and Leadership

The success of Danish Power can be largely attributed to the vision and experience of its promoter, Mr. Dinesh Talwar, who has an industry experience of nearly 39 years. He has successfully steered the company towards growth and profitability. Additionally, Shivam Talwar, the Managing Director, brings over 17 years of experience in the transformer manufacturing industry. His Bachelor of Engineering with Honors in Electrical & Electronic Engineering complements the company’s focus on innovation and quality.

Market Insights and Recommendations

The Grey Market Premium (GMP) of Danish Power indicates potential listing gains of around 31%. Based on the company’s strong financial performance and the valuation of the IPO, we recommend risky investors apply for the Danish Power Limited IPO for short-term listing gains. However, long-term investors may want to evaluate further before committing to the IPO as a long-term investment.

In conclusion, Danish Power Limited presents a compelling opportunity for investors seeking short-term gains through its IPO. The company’s strong financial metrics, experienced leadership, and industry standing make it an attractive option in the power equipment manufacturing sector.

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