Danish Power IPO: Review, Valuation, Date & GMP

Danish Power IPO-Complete Overview

Danish Power IPO India’s biggest SME IPO is a book-built issue of Rs.197.90 crore by Danish Power Limited. The company was established in July 1985 and produces a range of transformers, including inverter duty transformers for use in wind farms and solar power plants. Besides, they manufacture control relay panels, and power & distribution transformers of the oil and dry types, and provide substation automation services. 

The company's product line can be divided into the following categories:

1. Transformers for wind turbine generators and inverter duty transformers (multi-winding) up to 20 MVA and 33 kV class for solar plants.

2. Transformer Distribution Up to 5 MVA 33 kV Class.

3. Transformers with power up to 63 MVA and 132 kV class.

4. The panel portfolio consists of LT Panels, APFC Panels, Bus Bar Protection Panels, Substation Automation (SCADA), Control Relay Panels up to 400 kV Class, and more.

The business runs two Jaipur manufacturing facilities Mahindra World City is home to one, while Sitapura Industrial Area is home to the other.

For design, development, and manufacture, the Mahindra World City manufacturing plant holds certifications for the Occupational Health and Safety Management System (ISO 45001:2018), Environmental Management System (ISO 14001:2015), and Quality Management System (ISO 9001:2015).

Tata Power Solar System Ltd, Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited, and Torrent Power Limited are among the company's clientele.

This Danish Power IPO will start on 22 October 2024, and its ‘initial public offering’ will end on 24 October 2024.

Danish Power IPO Overview

The Rs.197.90 crore new SME IPO comprises a wholly fresh issue of 52.08 lac Shares. 

This upcoming IPO date is from October 22 to October 24, 2024. The Danish Power IPO price is Rs.360 to Rs.380 for each Share. 

The expected IPO listing date is Tuesday, 29 October 2024, and listing at NSE and SME.

If You want to apply for the IPO,  Click Here to Open a Demat Account.

Company Financial

(Amount in Lac)

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Product-wise Revenue Breakdown  

(Amount in lac)

State-wise Revenue Breakdown  

(Amount in lac)

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing capital expenditures for the construction of a factory shed and the installation of extra equipment and machinery to expand the company's manufacturing capacity.

• To fulfill the needs for working capital.

• Full or partial prepayment of some outstanding loans that the company has taken out.

• General corporate purposes 

Peers of Danish Power Ltd.

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024. 

Evaluation

The IPO price is Rs.360 to Rs.380 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.26.29 from the last year, the resulting P/E ratio is 14.45x.

Considering the weighted EPS of Rs.15.72 for the last three years, the P/E ratio is 24.17x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 48.14x.

IPO's Strengths 

• A well-established manufacturing site.

• Current rapport with the customers.

• A wide range of products.

• A management team and promoters with experience and strength.

• Assurance of quality.

IPO’s Weaknesses

• Manufacturing facilities' geographic concentration.

• Reliance on particular industries, such as renewable energy.

• Price fluctuations for basic materials.

• Fierce rivalry in the transformer manufacturing industry.

Regulations influencing the renewable energy and electricity sectors.

Danish Power Limited IPO GMP

The IPO GMP today is Rs.0 as of 18 October 2024. With a price of Rs.380 per Share, the estimated IPO listing price is Rs.380 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from October 22 to October 24, 2024, with allotment on October 25, refund initiation on October 28, and listing on October 29, 2024.

Danish Power IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 52,08,000 Shares (Rs.197.90 Cr).

Danish Power IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (300 Shares) amounting to Rs.1,14,000 and in multiples thereof. In contrast, for HNI investors, the minimum Lot is 2 (600 Shares) amounting to Rs.2,28,000.

Danish Power IPO Reservation (% of Net Issue)

Promoters And Management of Danish Power Ltd.

• Dinesh Talwar.

• Shivam Talwar.

• Puneet Sandhu Talwar.

IPO Lead Managers

• Hem Securities Limited.

Dividend Policy

The company has not paid dividends in the last three FYs.

Conclusion

With that in mind, as Danish Power comes with an existing business in the transformer and panel manufacturing industry, with renewable energy as its focus, it gives a relatively well-working IPO. Appealing in comparison to industry counterparts, it might just perhaps present value for investors. That is the case with reliance on specific industries and having a concentrated geography. 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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