The shares of Danish Power will debut on the NSE SME platform on Tuesday. Ahead of the listing, the company's shares are trading with a GMP of Rs 246.
Considering the upper price band of Rs 380, the stock is expected to list at a premium of 64% over the issue price.
The IPO was entirely a fresh equity sale of 52.08 lakh shares and through the issue, the company raised about Rs 198 crore, which is the highest public offer in the SME segment this year.
Part of the proceeds from the IPO will be used for funding capital expenditure towards the expansion of the manufacturing facility by building of factory shed and installation of additional plant. The remaining funds will be utilised for working capital requirements, repayment of debt, and other general corporate purposes.
Danish Power is engaged in the business of manufacturing of different types of transformers including inverter duty transformers used in renewable power projects like solar power plant or wind farms, oil and dry type power and distribution transformers, control relay panel along with substation automation services.
These transformers and panels are used across various sectors and industries to facilitate the efficient transmission and distribution of electrical power such as renewable power EPC projects like solar power plant, wind power farms, other power generation plants, power transmission, electricity sub-stations, power utilities etc.
The company's customers include key players like Tata Power Solar System, Waaree Renewable Technologies, Jakson Green Private Limited, ABB India and Torrent Power.
The electrical equipment market share in India is expected to increase from $52.98 billion in 2022 to $125 billion by 2027, implying a CAGR of 11.68%. The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach $72 billion by 2025.
In FY23, India’s heavy electrical equipment production stood at Rs 2.44 lakh crore. The electrical machinery segment grew nearly 13% with shipments jumping to $10.19 billion in the April-December 2023 period.
For the year ended March 2024, the company's revenue from operations stood at Rs 335 crore, while profit after tax was at Rs 38.07 crore.
Considering the upper price band of Rs 380, the stock is expected to list at a premium of 64% over the issue price.
The IPO was entirely a fresh equity sale of 52.08 lakh shares and through the issue, the company raised about Rs 198 crore, which is the highest public offer in the SME segment this year.
Part of the proceeds from the IPO will be used for funding capital expenditure towards the expansion of the manufacturing facility by building of factory shed and installation of additional plant. The remaining funds will be utilised for working capital requirements, repayment of debt, and other general corporate purposes.
Danish Power is engaged in the business of manufacturing of different types of transformers including inverter duty transformers used in renewable power projects like solar power plant or wind farms, oil and dry type power and distribution transformers, control relay panel along with substation automation services.
These transformers and panels are used across various sectors and industries to facilitate the efficient transmission and distribution of electrical power such as renewable power EPC projects like solar power plant, wind power farms, other power generation plants, power transmission, electricity sub-stations, power utilities etc.
The company's customers include key players like Tata Power Solar System, Waaree Renewable Technologies, Jakson Green Private Limited, ABB India and Torrent Power.
The electrical equipment market share in India is expected to increase from $52.98 billion in 2022 to $125 billion by 2027, implying a CAGR of 11.68%. The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach $72 billion by 2025.
In FY23, India’s heavy electrical equipment production stood at Rs 2.44 lakh crore. The electrical machinery segment grew nearly 13% with shipments jumping to $10.19 billion in the April-December 2023 period.
For the year ended March 2024, the company's revenue from operations stood at Rs 335 crore, while profit after tax was at Rs 38.07 crore.
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