Danish Power Limited is proud to establish itself as a leading manufacturer and exporter of quality power equipment from India. With a vision focused on building a legacy, the company emphasizes maintaining the skills and expertise that the industry demands while preparing for future challenges.

The Danish Power IPO, a book-built issue, aims to raise ₹197.90 Crores through a fresh issue of 52.08 Lakh Shares. The subscription period runs from October 22, 2024, to October 24, 2024, with the allotment expected to be finalized on October 25, 2024. The shares are set to list on the NSE SME with a tentative listing date of October 29, 2024.

The share price band for the Danish Power IPO is fixed between ₹360 and ₹380 per equity share, with a minimum lot size of 300 shares. For retail investors, the minimum investment is ₹1,14,000, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,28,000 by applying for two lots.

HEM SECURITIES LIMITED serves as the book-running lead manager, and Link Intime India Private Limited is the registrar for this issue. Hem Finlease Private Limited will act as the market maker for the Danish Power IPO.

Financial Overview:

As of October 24, 2024, the Grey Market Premium (GMP) for Danish Power is estimated at ₹120, suggesting strong demand for the shares based on the company's financial performance. It’s important to note that the Grey Market Premium can be speculative and should be approached cautiously, as it does not accurately reflect the listing price.

On the final day of subscription, the Danish Power IPO recorded a live subscription status of 24.34 times, showcasing overwhelming interest among investors. The company also secured ₹55.63 Crores from anchor investors at a price of ₹380 per share, indicating confidence in its valuation.

Objectives of the IPO:

The proceeds from the fresh issue will be directed towards several critical areas:

1. Funding capital expenditure for the expansion of manufacturing facilities, including the construction of factory sheds and installation of additional machinery, amounting to ₹3,699.47 Lakhs.
2. Working capital requirements of the company, totaling ₹8,500.00 Lakhs.
3. Repayment of borrowings, amounting to ₹2,000.00 Lakhs.
4. General corporate purposes to enhance operational efficiency.

Company Background:

Danish Power has shown remarkable revenue growth, with revenues from operations reaching ₹33,463.84 Lakhs for the fiscal year 2024. The EBITDA for the same period was ₹5,371.14 Lakhs, and the Profit after Tax stood at ₹3,807.27 Lakhs. The company is offering shares at a pre-issue EPS of ₹26.29 and a post-issue EPS of ₹19.33, with a pre-issue P/E ratio of 14.45x and a post-issue P/E ratio of 19.65x, compared to the industry average P/E ratio of 48.14x. The ROCE for FY24 is an impressive 56.98%, while the RoE stands at 60.35%, suggesting that the IPO is fairly priced relative to its financial metrics.

The company’s growth trajectory is spearheaded by its promoter, Mr. Dinesh Talwar, who brings over 39 years of industry experience. The Managing Director, Shivam Talwar, with a Bachelor of Engineering in Electrical & Electronic Engineering and 17 years of experience in the transformer manufacturing sector, further strengthens the company’s leadership.

Given the promising Grey Market Premium indicating potential listing gains of 31%, investors looking for higher-risk opportunities may consider applying for the Danish Power IPO.

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This article provides crucial insights into the Danish Power IPO, equipping investors with the information necessary for informed decision-making.