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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)

Period

30 Jun 2024 (Restated Consolidated)

31 Mar 2024 (Restated Consolidated)

Total Assets 

20,639.09

15,977.95

Total Revenue

7,273.29

33,463.84

PAT

998.21

3,807.27

Net Worth

9,201.38

8,213.16

Total Reserves & Surplus

7,753.02

8,052.23

Borrowings

2,393.07

1,011.6

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Net Cash Flow In Multiple Activities

30 Jun 2024

31 Mar 2024

31 Mar 2023

Net Cash Flow Operating Activities

2,320.73 

2,570.68

2,892.45

Net Cash Flow Investing Activities

-3,100.66

-732.76

-1,014.30

Net Cash Flow Financing Activities

1,010.24 

-447.73

-1,786.35

 

Product-wise Revenue Breakdown  

(Amount in lac)

Particulars

30 Jun 2024

31 Mar 2024

31 Mar 2023

Inverter Duty Transformer 

4935.48

23628.6

9912.62

Distribution Transformer 

1817.16 

6498.53

6460.26

Panel 

274.67

2906.45

2155.93

Power Transformer 

-

-

44.26

Others  

108.17 

147.35

236.35

Total 

7135.48

33180.93

18809.41 

 

State-wise Revenue Breakdown  

(Amount in lac)

Particulars

30 Jun 2024

31 Mar 2024

31 Mar 2023

Rajasthan

425.86 

13,245.08

9,592.14 

Maharashtra 

1125.96

6,855.19

3,493.48

Gujarat

3794.64

5,806.82

1,076.51

Madhya Pradesh 

70.13

2,381.53

137.23

Dadra & Nagar Haveli 

-

1,047.52 

376.38 

Uttar Pradesh

90

701.54

584.43

Delhi 

313.96 

638.42

1,658.23

Karnataka 

411.87

221.93

503.43

Haryana

-

73.87 

56.23

Domestic Other States 

494.80

1397.85

678.98 

Exports

408.26

811.18

652.36

Total 

7135.48

33,180.93

18,809.40

 

 

 

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.

Company Name

Face Value (Rs.)

EPS (Rs.)

P/E (x)

Indo Tech Transformers Ltd.

10

44.12

46.61

Shilchar Technologies Ltd.

10

120.48

53.04

Voltamp Transformers Ltd.

10

303.8

44.76

 

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.

Particulars

P/E Ratio (x)

Highest 

53.04

Lowest 

44.76

Average

48.14

In simple words, the P/E ratio of this IPO (14.45x), compared with the industry’s average P/E of 48.14x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.
 

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.

Events 

Date

IPO Opening Date

October 22, 2024

IPO Closing Date

October 24, 2024

IPO Allotment Date 

October 25, 2024

Refund Initiation 

October 28, 2024

IPO Listing Date

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).

IPO Opening & Closing date 

October 22, 2024 to October 24, 2024

Face Value 

Rs.10 per Share

Issue Price

Rs.360 to Rs.380 per Share.

Lot Size

300 Shares

Issue Size

52,08,000 Shares (Rs.197.90 Cr)

Offer for Sale 

NA.

Fresh Issue 

52,08,000 Shares (Rs.197.90 Cr)

Listing at

NSE, SME

Issue Type 

Book Built Issue IPO

Registrar 

Link Intime India Private Ltd.

 

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.

Minimum Lot Investment (Retail) 

1 Lot

Maximum Lot Investment (Retail) 

1 Lot

HNI (Min)

2 Lots

 

Danish Power IPO Reservation (% of Net Issue)

Institutional’s Portion

50%

Retail’s Portion

35%

Non-Institutional’s Portion

15%

 

Promoters And Management of Danish Power Ltd.

  • Dinesh Talwar.

  • Shivam Talwar.

  • Puneet Sandhu Talwar.

 

Pre-Issue Promoter Shareholding

99.99%

Post-Issue Promoter Shareholding

73.55%

 

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: This is NOT any buy or sell recommendation. 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/trading activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in investing/trading.    

Click Here to stay updated with the Upcoming IPOs.

 

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Frequently Asked Questions

+

Danish Power IPO is the biggest IPO in the SME category.

+

If you have applied for the IPO but have not been allotted the Shares by the Registrar and now looking for “ what to do if the IPO refund is not received ”, then we have covered the blog which explains the steps to get your IPO refund. Click here to learn the steps.
 

+

October 22, 2024, is the opening date of this IPO



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