Danish Power IPO: 10 Key Points You Need to Know

1. IPO Subscription Dates Danish Power IPO will open for subscription on October 22, 2024, and close on October 24, 2024. During this period, investors can apply for shares through various methods, including online banking and broker services.

2. Fundraising and Price Band The IPO aims to raise ₹197.90 Crores entirely through a fresh issue of equity shares. The price band is set between ₹360 and ₹380 per share, and each share has a face value of ₹10.

3. Share Allocation The allocation is divided as follows: 35% for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net-Worth Individuals (HNIs). This structure ensures diverse participation in the IPO.

4. Company Overview Founded in 1985, Danish Power Limited is a Jaipur-based company specializing in manufacturing transformers and power equipment. With a focus on renewable energy solutions, it serves industries like wind farms and solar power plants. The company has established itself as a reliable name in the power sector.

5. Objectives of the IPO The capital raised will be used for:

• Expansion: Construction of new factory facilities and purchase of machinery.
• Working Capital: Enhancing operational efficiency.
• Debt Repayment: Reducing financial liabilities by paying off existing loans.
• General Corporate Purposes: Supporting day-to-day operations and business growth.

6. Important Dates

• Open Date: October 22, 2024
• Close Date: October 24, 2024
• Allotment Date: October 25, 2024
• Listing Date: October 29, 2024

7. Financial Performance In FY2024, Danish Power reported a revenue of ₹334.64 Crores with a profit after tax of ₹38.07 Crores. The company’s financial health shows consistent growth, and its profitability metrics are positive.

8. Valuation Metrics

• ROE: 60.34%
• ROCE: 56.97%
• EBITDA Margin: 16.15%
• PAT Margin: 11.45%
• Debt-to-Equity Ratio: 0.12 These indicators reflect Danish Power’s strong operational efficiency and financial stability.

9. Peer Comparison Danish Power competes with companies like Indo Tech Transformers, Shilchar Technologies, and Voltamp Transformers. Its strong return metrics and focus on renewable energy set it apart from its peers.

10. How to Apply Investors can apply through ASBA (Applications Supported by Blocked Amount) or by filling offline forms. Popular brokers like Motilal Oswal, Alice Blue, and M-Stock support IPO applications via UPI and Demat accounts.

Conclusion Danish Power IPO presents a promising opportunity, especially for those looking to invest in a company that aligns with the global shift toward renewable energy. With a strong market position and strategic growth plans, this IPO has garnered significant attention.