The initial public offering (IPO) of Danish Power Limited, a promising player in the renewable energy sector, opened for subscription on October 22, 2024. It was fully booked within hours, reflecting strong investor interest. This article delves into the IPO’s status, financial health, and insights for potential investors.
IPO Overview and Subscription Details
Opening and Closing Dates
The Danish Power IPO remains open for subscription until October 24, 2024. The public offering aims to raise around ₹197.9 crores through the issuance of 52.08 lakh shares.
Price Band
The price range for this IPO is set between ₹360 and ₹380 per share, catering to a broad spectrum of investors. As of 1:45 PM on the opening day, the offering was oversubscribed by 1.15 times, with bids for over 40.2 lakh shares against the 34.83 lakh shares available. Notably, retail individual investors led the subscription, applying for over 31.51 lakh shares for a retail subscription rate of 1.84 times. Meanwhile, Non-Institutional Investors (NIIs) recorded a subscription rate of 92%, with Qualified Institutional Buyers (QIBs) subscribing to only 18% of their allotted quota.
Latest Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Danish Power shares stands at approximately ₹250, signifying robust demand in the grey market despite the differing subscription rates. The Kostak rate is currently at ₹- while the Subject to Sauda rate holds steady at around ₹2,500. Such premiums reflect significant pre-listing interest from investors.
Key Financial Performance
Danish Power reported a revenue of ₹72.73 crore in Q1 FY25, with a Profit After Tax (PAT) of ₹9.98 crore. For FY24, the company’s revenue reached ₹334.63 crore, alongside a net profit of approximately ₹38.07 crore. As of June 30, 2024, the firm’s net worth stood at ₹92 crore, highlighting its financial stability and growth potential.
Upcoming Important Dates
- Allotment Date: Expected on October 25, 2024
- Refunds Initiated: October 28, 2024
- Credit to Demat Account: October 28, 2024
- Listing Date: Tentatively scheduled for October 29, 2024
Company Background and Market Position
Established in July 1985, Danish Power Limited specializes in manufacturing a variety of transformers tailored for renewable energy applications, including solar and wind power projects. Their product portfolio encompasses oil and dry-type power distribution transformers and control relay panels, in addition to substation automation services. The company operates two manufacturing facilities in Jaipur, Rajasthan, and has cultivated partnerships with reputable firms such as Tata Power Solar System Ltd., Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited, and Torrent Power Limited.
Should You Invest in the Danish Power IPO?
Potential investors should consider the following:
- Investment Horizon: Given the positive subscription and GMP trends, the Danish Power IPO may offer a good opportunity for investment.
- Minimum Investment Amount: Retail investors are required to apply for a minimum lot size of 300 shares, necessitating an investment of approximately ₹1,14,000.
- High Net-Worth Individuals (HNIs): HNIs must invest in a minimum of two lots (600 shares), totaling around ₹2,28,000.
With Danish Power’s impressive financial metrics and its strategic positioning in the renewable energy sector, analysts suggest that this IPO offers attractive prospects for both short-term and long-term investment strategies.
Conclusion
In conclusion, the Danish Power IPO has demonstrated substantial demand on its opening day, reflecting investor confidence in the company’s growth potential within the burgeoning renewable energy market. With a firm financial foundation and established market presence, Danish Power is positioned as a compelling investment opportunity for individuals seeking both immediate returns and long-term value.