IPO Overview and Subscription Status
Opening and Closing Dates
The Danish Power IPO is open for subscription from October 22 to October 24, 2024. The public offer aims to raise approximately ₹197.9 crores through a fresh issue of 52.08 lakh shares.Price Band
The price band for the IPO has been fixed between ₹360 and ₹380 per share, making it accessible for various investor categories.As of 1:45 PM on the first day of bidding, the IPO was subscribed 1.15 times, with investors placing bids for over 40.2 lakh shares against the 34.83 lakh shares on offer. Retail individual investors led the demand, applying for over 31.51 lakh shares, resulting in a retail subscription rate of 1.84 times. The Non-Institutional Investors (NIIs) category saw a subscription rate of 92%, while Qualified Institutional Buyers (QIBs) booked only 18% of their quota.
Latest Grey Market Premium (GMP)
As of today, the Grey Market Premium (GMP) for Danish Power shares is reported at approximately ₹250, indicating strong demand in the grey market despite fluctuations in subscription rates. The Kostak rate remains at ₹-, while the Subject to Sauda rate is set at around ₹2,500. This premium suggests that there is considerable interest in the stock even before it officially lists.
Key Financials
Danish Power reported a revenue of ₹72.73 crore for Q1 FY25, with a Profit After Tax (PAT) of ₹9.98 crore. For FY24, the company achieved a revenue of ₹334.63 crore, with a net profit of approximately ₹38.07 crore. As of June 30, 2024, Danish Power’s net worth stood at ₹92 crore, reflecting its solid financial foundation.
Upcoming 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
Founded in July 1985, Danish Power Limited specializes in manufacturing various types of transformers used in renewable energy projects such as solar and wind power plants. The company also produces oil and dry-type power distribution transformers and control relay panels, along with offering substation automation services.Danish Power operates two manufacturing plants located in Jaipur, Rajasthan, and has established a strong client base that includes prominent companies like Tata Power Solar System Ltd., Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited, and Torrent Power Limited.
Should I Apply?
Investors interested in applying for the Danish Power IPO should consider several factors:
- Investment Horizon: Given the strong demand from retail investors and positive market sentiment reflected in both GMP and subscription rates, this IPO could be a viable investment opportunity.
- Minimum Investment: Retail investors can apply for a minimum lot size of 300 shares, requiring an investment of approximately ₹1,14,000.
- High Net-Worth Individuals (HNIs): HNIs are required to apply for a minimum lot size of two lots (600 shares), amounting to around ₹2,28,000.
Given Danish Power’s solid financial performance and growth potential within the renewable energy sector, analysts suggest that this IPO may be worth considering for both short-term gains and long-term investment strategies.
Conclusion
In summary, the Danish Power IPO has shown robust demand on its opening day, indicating strong investor confidence in the company’s growth potential within the renewable energy sector. With its solid financials and established market presence, Danish Power presents a compelling option for both short-term gains and long-term investment strategies.
