Divine Power Energy Ltd IPO: Review, Valuation, Date & GMP

Divine Power Energy Limited IPO-Complete Overview

Divine Power Energy Limited's first public offering Divine Power Energy Limited, which was formed in 2001, is a manufacturer of winding copper/aluminium strip, winding copper/aluminium wire, and bare copper/aluminium wire. The process of producing winding wires/strips involves annealing, insulating, and covering the wires/strips with materials like paper, cotton, fiberglass, etc.

The company has shipped wires and strips wrapped in fibreglass to Ahmedabad, Bengaluru, and Punjab markets. It believes that markets like Maharashtra have potential. The company mainly supplies transformer makers and electricity distribution providers with winding wires.

TATA Power Limited, BSES, Madhyanchal Vidyut Vitaran Nigam Limited, Dakshinanchal Vidyut Vitaran Nigam Limited, Purvanchal Vidyut Vitaran Nigam Limited, Uttarakhand Power Corporation Limited, and Paschimanchal Vidyut Vitran Nigam Limited are among the company's clients.

The company's Sahibabad, Ghaziabad, manufacturing facility is located there. Each month, the facility can process 400 metric tons of copper and 300 metric tonnes of aluminium. International Management Certification, an organisation recognized by the Global Accreditation Assessment Forum Series, has granted DPEL an ISO 9001:2015 certification.

There were 40 employees working for the organisation across several departments as of June 2024.
Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on June 25, 2024.

Let's take a closer look at the IPO's offerings below.

Divine Power Energy Limited IPO Overview

Divine Power Energy Limited IPO is an SME book-built IPO of Rs.22.76 crore with a whole Fresh Issue of 5,690,000 shares (amounting to Rs.22.76 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

Investors can purchase shares in the IPO beginning on June 25, 2024, and it will end on June 27, 2024. The anticipated listing date for the IPO is Tuesday, July 2, 2024, and it will be held on the NSE and SME. The price band of the share is Rs.36 to Rs.40.

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

 

 

Company Financial

Divine Power Energy Limited's revenue climbed by 47.65%, while profit after tax (PAT) increased by 124.82% during the fiscal years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year that concluded on 30 September 2023.

• The company’s total revenue is Rs.10,295.41 lacs.

• The net worth of the company is 2145.14 lacs.

• The total assets of the company are 8065.73 lacs
  
  

(Amount in lacs)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	8,889.24	7,253.31	6,276.46
Total Revenue	22,272.00	15,084.20	12,290.38
PAT	640.59	284.94	80.51
Net worth	2,556.53	1,915.94	1,246.00
Reserve & Surplus	978.62	338.03	1,231.72
Total Borrowings	5,785.44	4,763.84	4,466.34

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in lacs)

Net Cash flow in various Activities.	30 Sep 2023	FY Mar 31, 2023	FY Mar 31, 2022
Net Cash Flow Operating Activities	148.94	169.56	470.75
Net Cash Flow Investing Activities	163.97	414.91	165.35
Net Cash Flow Financing Activities	32.23	255.31	352.59

 

 

The Objective of the Issue

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

• To meet the functioning capital necessities of the organisation , and

• General Corporate Reason

 

Peers of Divine Power Energy Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E
Shera Energy Limited	10	5.21	34.17x
Bhagyanagar India Ltd	2	14.29	7.63x
Rajnandini Metal Limited	1	0.55	19.49x
Ram Ratna Wires Ltd.	5	11.88	32.83x
Precision Wires India Ltd.	1	4.08	33.60x

 

Evaluation

The price of each share of this IPO is set at Rs.36 to Rs.40 

Evaluation of P/E Ratio

The P/E Ratio of Divine Power Energy Limited IPO is 9.85x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 34.59.

Particulars	P/E Ratio
Highest	39.05
Lowest	30.01
Average	34.59

 

IPO's Strengths 

• Skilled leadership and productive personnel.

• All-inclusive solution supplier providing a varied range of precise goods for usage in a variety of end-user sectors and geographical areas.

• Scalable business.

• A potent local presence.

• A history of steady growth and sound financial success.

• Solid, long-standing connections with suppliers and customers in the sector.

• A capable workforce and a top management team that is devoted, strong, and experienced.

 

 

IPO’s Weaknesses

• The organisation relies upon a couple of providers for its unrefined substances and any postponement, interference, or decrease in the stockpile of natural substances to fabricate its items or unpredictability in the costs of unrefined substances, may unfavourably influence its business, consequences of tasks, monetary condition, and incomes.

• The organization determines a huge part of its income from its main 10 clients. The deficiency of at least one such client, the disintegration of their monetary condition or prospects, or a decrease in their interest in its items could unfavorably influence its business, consequences of tasks, monetary condition, and incomes.

• The organization doesn't have strong responsibility concurrences with its clients. Assuming that the organization's clients diminish their buys from it or decide not to source their prerequisites from the organisation, there might be an unfavorable impact on its business, consequences of tasks, monetary conditions, and incomes.

• Its business is reliant and will keep on contingent upon the organization's assembling offices, and the organisation is dependent upon specific dangers in its assembling cycle. Any lull or closure in its assembling tasks or strikes, work stoppages, or expanded wage requests by representatives could slow down the organisation's activities and could antagonistically affect its business, monetary condition, and consequences of tasks.

• Its expense of creation is presented to fluctuations in the costs of natural substances, especially Copper bars, aluminium Poles, and protecting materials like paper, cotton, and fiberglass the organization has not gone into any concurrence as for long haul supply for unrefined components required.

• The business portions in which the organization works are divided, and the organization faces rivalry from different players, which might influence its business functional and monetary circumstances.

• The organization has in the past gone into exchanges with related parties and may keep on doing as such from here on out. These or any future related party exchanges may include irreconcilable circumstances and there can be no affirmation that the organization could never have accomplished better terms, had such plans been placed into inconsequential gatherings.

• The organization has announced specific negative incomes from its funding action and contributing movement, subtleties of which are given below. Supported negative income could influence its development and business.

IPO GMP Today

Divine Power Energy Limited IPO’s latest GMP is Rs.61.

 

Divine Power Energy Limited IPO Timetable (Tentative)

The IPO is scheduled from June 25 to June 27, 2024, with allotment on June 28, refund initiation on July 1, and listing on July 2, 2024.

Events	Date
IPO Opening Date	June 25, 2024
IPO Closing Date	June 27, 2024
IPO Allotment Date	June 28, 2024
Refund initiation	July 1, 2024
IPO Listing Date	July 2, 2024

 

Divine Power Energy Limited IPO Details 

The IPO with a face value of Rs.10 per share is set to start on June 25, close on 27 June, and offer a total issue size of 5,690,000 shares (amounting up to Rs.22.76 crore) a whole fresh issue.

IPO Opening & Closing date	June 25, 2024 to June 27, 2024
Face Value	Rs.10 per share
Issue Size	Rs.22.76 crore
Offer for Sale	Nil
Fresh Issue	Rs.22.76 crore
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

 

Divine Power Energy Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 lot (3000 shares) amounting to Rs.120000, while for HNI investors, the minimum lot is 2 (6000 shares) amounting to Rs.240000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
HNI (Min)	2 lots

 

Divine Power Energy Limited IPO Reservation

 

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

Promoters and Management of Divine Power Energy Limited IPO

• Mr Rajesh Giri

• Mr Vikas Talwar

• Ms Dali Giri.
  
  

Pre-issue Promoter shareholding	100%
Post-issue Promoter shareholding	-

 

Divine Power Energy Limited IPO Lead Managers

Khambatta Securities Limited.

 

 

Dividend Policy

No Dividends paid by the company yet. 

 

Conclusion

The company has noticed a gain in its total revenue, total assets, and net worth in the previous Financial Year(s). To fulfil its objectives, the company is currently conducting an initial public offering (IPO) for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

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.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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