Danish Power Limited is gearing up for an Initial Public Offering (IPO) that is poised to attract significant attention from investors. With the intent to raise approximately INR 197.90 crore through the offering of 52,08,000 shares, the IPO will be available for subscription from October 22 to October 24, 2024. The issue price is set in a range of INR 360 to 380 per share. As a leading transformer manufacturer with a focus on renewable energy projects, Danish Power has established a robust client base, including significant players like Tata Power Solar and ABB India. This article will explore every aspect of the Danish Power IPO, including detailed information, a thorough review, key risks associated with the investment, and answers to frequently asked questions, ensuring that potential investors are well-informed.
IPO Details
| IPO Details | Information |
|---|---|
| IPO Issue Opening Date | 22nd Oct 2024 |
| IPO Issue Closing Date | 24th Oct 2024 |
| DRHP | Available |
| IPO Issue Price | ₹360.00-380.00 Per Share |
| IPO Listing At | NSE SME |
| IPO Issue Type | Book Build Issue |
| IPO Issue Size | ₹197.90 Cr |
| Fresh Issue | ₹197.90 Cr |
| Face Value | ₹10 Per Equity Share |
| Promoter Holding Pre IPO | 99.99% |
Company Profile
Danish Power is recognized for its expertise in manufacturing transformers specifically designed for wind farms and renewable energy initiatives. Their product offerings are diverse, encompassing:
- Distribution Transformers (up to 5 MVA, 33 kV class)
- Power Transformers (up to 63 MVA, 132 kV class)
- Multi-winding Inverter Duty Transformers (up to 20 MVA, 33 kV class) for solar energy applications
- Control Relay Panels and Substation Automation equipment
Danish Power operates two manufacturing facilities located in Mahindra World City and Sitapura Industrial Area in Jaipur, boasting a combined annual output capacity of approximately 4681 MVA and producing 576 control relay panels for transformers. As of March 2024, the company employs around 343 people, reflecting its commitment to expanding its workforce as it grows in the renewable energy sector.
Danish Power IPO Review
A comprehensive analysis of Danish Power’s IPO provides valuable insights into the investment opportunity and associated risks. As the renewable energy sector is increasingly gaining traction, Danish Power’s innovative approach and product range may position the company for potential success.
Investment Opportunity
Investing in Danish Power’s IPO could appeal to investors for several reasons:
- Strong Market Position: With a specialized focus on renewable energy and established client relationships, Danish Power is well-positioned in a growing sector.
- Diverse Product Range: The company’s products cater to both solar and wind energy projects, aligning with government initiatives aimed at increasing renewable energy capacity.
- Experienced Management: The company boasts a capable management team with expertise in the energy sector, which adds credibility to its operational strategies.
Risks Involved
While there are substantial opportunities, potential investors should also consider risks:
- Market Volatility: Fluctuating energy markets and external economic factors can influence overall investor sentiment and stability.
- Regulatory Risks: As a participant in the heavily regulated energy sector, changes in regulations could introduce challenges for the company.
- Intense Competition: The energy sector is highly competitive, posing a threat to maintaining profitability and market share.
- Sustainability Concerns: As environmental awareness grows, investors will scrutinize Danish Power’s environmental impact and dedication to sustainable practices.
- Capital Allocation: The success of the IPO will depend on how effectively the raised capital is utilized to achieve growth and maintain shareholder value.
How to Invest in Danish Power IPO?
Investing in the Danish Power IPO follows a straightforward process that facilitates easy participation for retail and institutional investors alike. Here’s how potential investors can subscribe to this IPO:
- Check Allocation: Ensure that you meet the eligibility criteria for applying to the IPO based on the categories outlined (retail, HNI, etc.).
- Register with a Broker: If you don’t have a trading account, open one with a registered broker or financial institution that has IPO participation services.
- Access the Application Form: Visit the stock exchange’s website or your broker’s platform to download or access the application form for the Danish Power IPO.
- Fill in Your Details: Complete the application form with accurate information and choose the appropriate number of shares you wish to apply for, within the price range.
- Submit the Application: Submit the completed application form along with the required payment.
- Await Allotment: After the IPO closing date, wait for the allotment results to determine whether shares have been allocated to you.
FAQs about Danish Power IPO
- 1. What is the total amount expected to be raised from the Danish Power IPO?
- The Danish Power IPO aims to raise approximately INR 197.90 crore through the issuance of new shares during the offering period.
- 2. What is the duration of the IPO subscription period?
- The IPO will be open for subscription from October 22 to October 24, 2024.
- 3. What is the price range for the shares in this IPO?
- The issue price for the Danish Power shares is set between INR 360 and 380 per share.
- 4. Where will the shares be listed after the IPO?
- The shares from this IPO will be listed on the NSE SME platform.
- 5. Who are the main competitors of Danish Power in the energy sector?
- Danish Power faces competition from companies such as Tata Power Solar, ABB India, Waaree Renewable Technologies, and Torrent Power.
- 6. What products does Danish Power manufacture?
- Danish Power specializes in various transformer products, including distribution transformers, power transformers, inverter duty transformers, and substation automation equipment.
In conclusion, the Danish Power IPO presents a significant opportunity for investors looking to tap into the burgeoning renewable energy sector. With its established market presence, diverse product offerings, and commitment to sustainability, Danish Power is well-equipped to navigate the complexities of the industry while delivering value to its shareholders. However, it’s essential for investors to weigh the opportunities against the inherent risks before making investment decisions. Remember to conduct thorough research and consult financial advisers if necessary.