Danish Power to launch public issue on Oct 22, 2024

Danish Power, one of the biggest manufacturers in India’s power equipment sector, is to launch its much-anticipated SME IPO on October 22, 2024. The company plans to raise Rs.197.90 crore through a fresh issue of shares, with the subscription window open until October 24, 2024. The price band has been fixed between Rs.360 and Rs.380 per share, and the Danish Power IPO will be listed on the NSE SME platform.

Danish Power IPO consists entirely of a fresh issue, with the promoters’ shareholding expected to decrease from 99.99% pre-IPO to 73.55% post-IPO. Retail investors are allotted a minimum of 35% of the net issue, and the minimum investment required is Rs.114,000 for a lot of 300 shares. The tentative listing date for Danish Power is set for October 29, 2024.

Key IPO Details

Company Overview

Founded in 1985, Danish Power has built a good reputation as a manufacturer of high-quality transformers and electrical panels. The company’s product portfolio includes inverter duty transformers, power transformers, and control relay panels, used widely across sectors for electrical transmission and distribution.

Danish Power’s clientele features major industry players like Tata Power Solar, Waaree Renewable Technologies, ABB India, and Torrent Power. Its two state-of-the-art manufacturing facilities in Jaipur are equipped to produce up to 4681 MVA of transformers and around 576 control relay panels annually.

Financials

Danish Power’s financial performance shows growth. As of June 30, 2024, the company reported revenue of Rs.7,273.29 lakh, alongside a profit after tax of Rs.998.21 lakh. Its total assets stood at Rs.20,639.09 lakh, and the company’s net worth reached Rs.9,201.38 lakh.

Conclusion: With its established market presence, product portfolio, and good customer relationships, Danish Power seems ready to take its position. The Danish Power IPO will offer an opportunity for investors to be part of this, though they should carefully consider the risks associated with SME investments before committing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.