Danish Power Limited takes pride in being recognized as one of the leading quality-conscious power equipment manufacturers and exporters from India. At Danish, they believe in building a legacy by looking toward the future. The company is committed to retaining the skills and expertise that their customers and the industry expect, while also preparing to meet emerging challenges.

Investment 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 opens on October 22, 2024, and closes on October 24, 2024. Allotment is expected to be finalized on or about October 25, 2024, with shares listed on the NSE SME around October 29, 2024.

The share price band is set at ₹360 to ₹380 per equity 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 (600 shares), totaling ₹2,28,000.

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

Grey Market Premium and Allotment Status

The Grey Market Premium (GMP) for Danish Power IPO is currently expected to be ₹0, indicating a lack of demand based on the company’s financial performance. It’s important to note that trading based on GMP is speculative, and no real price discovery can be done before the listing. The GMP is provided for educational and informational purposes only.

As the IPO opens for subscription on October 22, 2024, there are no live subscription statistics available yet.

Allotment Date and Status

The Danish Power IPO allotment date is set for October 25, 2024. The allotment will be available on the registrar's website from the allotment date. Here's how you can check the allotment status:

Navigate to the IPO allotment status page.

Select Danish Power Limited IPO from the dropdown list of IPOs.

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

Submit the details to check your allotment status.

By following these steps, investors can easily determine their allotment status and proceed accordingly.

Objectives of the Danish Power IPO

The proceeds from the Fresh Issue will be utilized towards the following objectives:

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

Company Overview and Financial Performance

Danish Power Limited has shown steady financial performance, with revenues from operations for the fiscal year 2024 amounting to ₹33,463.84 Lakhs. The EBITDA for the same period was ₹5,371.14 Lakhs, and the Profit After Tax (PAT) was ₹3,807.27 Lakhs.

For the Danish Power IPO, the company is issuing shares at a pre-issue Earnings Per Share (EPS) of ₹26.29 and a post-issue EPS of ₹19.33. The pre-issue Price-to-Earnings (P/E) ratio stands at 14.45x, while the post-issue P/E ratio is 19.65x, compared to the industry P/E ratio of 48.14x. The company's Return on Capital Employed (ROCE) for FY24 is 56.98%, and Return on Equity (RoE) is 60.35%, suggesting that the IPO is fairly priced.

The growth of the company is attributed to the vision of its promoter, Mr. Dinesh Talwar, who has approximately 39 years of industry experience. The Managing Director, Shivam Talwar, holds a Bachelor of Engineering with Honors in Electrical & Electronic Engineering and has about 17 years of experience in the transformer manufacturing industry.

Conclusion

The Grey Market Premium (GMP) for Danish Power indicates potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend investors to avoid the Danish Power Limited IPO for listing gains or long-term investment purposes.

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