Danish Power IPO

Danish Power includes a fresh issue of 52.08 lakh shares worth INR 197.90 crores, aimed at expanding manufacturing, meeting working capital & repaying borrowings.

Important Details

Open Date : October 22, 2024 Close Date : October 24, 2024 Allotment Date: October 25, 2024 Listing Date: October 29, 2024

Important Details

IPO Price: INR 360-380 per share Lot Size: 300 Shares Total Issue Size: INR 197.90 crores

Fundamental Analysis

Danish Power IPO shows mixed performance: 1. Revenue fell to ₹7,193.02 lakhs in Q1 FY 24-25. 2. Expenses decreased to ₹5,907.10 lakhs. 3. Profit after tax dropped to ₹998.21 lakhs. 4. RoNW declined to 11.27%. 5. Equity increased to ₹9,201.38 lakhs.

Peer Comparison

1. Danish Power Limited: EPS of ₹26.29, RoNW of 46.36%. 2. Indo Tech Transformers: P/E of 46.61. 3. Voltamp Transformers: Income of ₹1,70,520.65 lakhs, high book value.

Objective

Danish Power’s IPO objectives: 1. INR 36.99 crores for facility expansion. 2. INR 85 crores for working capital. 3. INR 20 crores for loan repayment. 4. Remaining for corporate purposes and project development.

Risks And Challenges

Danish Power IPO Risks: 1. Revenue depends on few key customers, risking losses. 2. Losses could impact cash flows and financial health. 3. Product design errors may affect operations.