Danish Power Limited is proud to be recognized as one of the leading quality-conscious power equipment manufacturers and exporters from India. The company focuses on building a legacy while addressing future challenges, ensuring it possesses the skills and expertise that customers and the industry expect.

Danish Power is launching a Book Built Issue amounting to ₹197.90 Crores, entirely consisting of a fresh issue of 52.08 lakh shares. The subscription period for the Danish Power IPO opens on October 22, 2024, and closes on October 24, 2024. The allotment is expected to be finalized on or about Friday, October 25, 2024, with shares set to list on the NSE SME on or about Tuesday, October 29, 2024.

Pricing and Market Capitalization

The share price band for the Danish Power IPO is set at ₹360 to ₹380 per equity share. The minimum lot size is 300 shares, requiring retail investors to make a minimum investment of ₹1,14,000. For High-Net-Worth Individuals (HNIs), the minimum investment is two lots (600 shares), totaling ₹2,28,000.

IPO Management

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

Grey Market Premium and Subscription Status

As of 10:29 AM on October 22, 2024, the Grey Market Premium (GMP) for the Danish Power Limited IPO is expected to be ₹120, suggesting potential listing gains. It is important to note that no real trading occurs based on the GMP, which is influenced by demand and supply in the unregulated market.

As of the latest update, the Danish Power IPO live subscription status shows that the IPO is subscribed 5.68 times on its second day, indicating strong investor interest. Investors can check real-time updates on the NSE.

Anchor Investors and Allocation

Danish Power Limited has successfully raised ₹55.63 Crore from anchor investors at a price of ₹380 per share. The company allocated 14,64,000 equity shares to these investors, with allocations made from the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Date and How to Check Status

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

Navigate to the IPO allotment status page.

Select Danish Power Limited IPO from the dropdown list.

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

Submit the details to view your allotment status.

By following these steps, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of the IPO

The proceeds from the fresh issue of the Danish Power IPO will be utilized for the following objectives:

₹3,699.47 Lakhs for funding capital expenditure towards the expansion of the manufacturing facility by constructing a factory shed and installing additional plant and machinery.

₹8,500.00 Lakhs to meet working capital requirements.

₹2,000.00 Lakhs for the repayment of certain borrowings availed by the company, in part or full.

General corporate purposes.

Financial Performance and IPO Review

Danish Power Limited's revenues from operations for the fiscal year 2024 were ₹33,463.84 Lakhs, with an EBITDA of ₹5,371.14 Lakhs and a profit after tax of ₹3,807.27 Lakhs.

For the Danish Power IPO, the company is issuing shares at a pre-issue EPS of ₹26.29 and a post-issue EPS of ₹19.33. The pre-issue P/E ratio stands at 14.45x, while the post-issue P/E ratio is 19.65x, compared to an industry P/E ratio of 48.14x. The company’s ROCE for FY24 is 56.98%, and RoE is 60.35%, indicating that the IPO is fairly priced.

The growth of the company is spearheaded by its promoter, Mr. Dinesh Talwar, who possesses approximately 39 years of industry experience, alongside Managing Director Shivam Talwar, a Bachelor of Engineering with Honors in Electrical & Electronic Engineering, with around 17 years of experience in the transformer manufacturing industry.

Given the company’s financial performance and IPO valuation, along with the Grey Market Premium (GMP) showing potential listing gains of 31%, we recommend risk-taking investors to apply for the Danish Power Limited IPO for potential listing gains.

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