Danish Power Limited is coming up with an IPO with a fresh issue of 52,08,000 shares worth INR 197.90 crores. The company aims to expand the existing manufacturing facility, meet the working capital requirement, repayment of borrowings, and general corporate purposes.

Danish Power Limited IPO – Important Dates

Read more about Danish Power Limited IPO GMP

Danish Power Limited IPO  – Company Profile

Danish Power is an ISO 9001:2015, ISO 14001: 2015, and ISO 45001:2018 certified company, engaged in the business of manufacturing different types of transformers including inverter duty transformers used in renewable power projects like solar power plants or wind farms, oil and dry type power and distribution transformers, control relay panel along with substation automation services. 

The customers include companies like Tata Power Solar System Ltd, Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited & Torrent Power Limited. 

The current product portfolio may be categorized as follows: 

1. Inverter Duty Transformers (multi-winding) up to 20 MVA 33 kV Class for Solar Plants, Transformers for Wind Turbine Generator 
2. Distribution of Transformers up to 5 MVA 33 kV Class 
3. Power Transformers up to 63 MVA 132 kV Class 
4. Panels include Control Relay Panels up to 400 kV Class, Substation Automation (SCADA), Bus Bar Protection Panels, LT Panels, APFC Panels

As of September 30, 2024, the Company has an order book of around Rs. 371.25 crores at order value less the amount billed representing manufacturing and supply of transformers and relay panel

Danish Power Ltd IPO Fundamental Analysis 

Danish Power’s, revenue fell to ₹7,193.02 lakhs in Q1 FY 24-25; expenses decreased to ₹5,907.10 lakhs. Profit after tax dropped to ₹998.21 lakhs, with RONW declining to 11.27% and equity increasing to ₹9,201.38 lakhs.

1. Revenue Growth:

• Revenue (₹ in lakhs):
  • The revenue for Q1 FY2025 is ₹7,193.02, which is a significant drop from ₹33,247.67 in FY2024.
  • This sharp decline may indicate seasonal fluctuations or other operational challenges.

2. Expense Management:

• Expenses (₹ in lakhs):
  • Expenses also decreased from ₹28,349.14 in FY2024 to ₹5,907.10 in Q1 FY2025, showcasing improved cost control.
  • The decrease in expenses relative to revenue indicates better operational efficiency during the quarter.

3. Profitability:

• Profit After Tax (₹ in lakhs):
  • PAT dropped to ₹998.21 in Q1 FY2025 from ₹3,807.27 in FY2024, reflecting a decline in profitability.
  • While the company is still profitable, the significant decrease raises concerns about the sustainability of earnings.
• Diluted EPS:
  • Diluted EPS decreased from ₹26.29 in FY2024 to ₹6.89 (not annualized) in Q1 FY2025, indicating lower returns for shareholders.

4. Equity and NAV Analysis:

• Equity (₹ in lakhs):
  • Equity rose from ₹8,213.26 in FY2024 to ₹9,201.38 in Q1 FY2025, indicating a solid capital base.
  • This growth suggests that the company is effectively reinvesting earnings to strengthen its equity position.
• NAV per Equity Share (₹):
  • NAV per share increased from ₹56.71 to ₹63.53, suggesting that the company’s assets are appreciating, which is a positive sign for shareholders.

5. Return on Net Worth (RONW):

• Efficiency:
  • RONW decreased from 46.36% in FY2024 to 11.27% (not annualized) in Q1 FY2025, signaling reduced efficiency in generating returns on equity.
  • This decline raises concerns about the company’s ability to maintain high profitability in the near term.

6. Financial Health Indicators:

• Total Assets and Liabilities:
  • Total assets increased from ₹16,257.08 in FY2024 to ₹20,639.09 in Q1 FY2025, reflecting growth in the company’s asset base.
  • Total liabilities rose from ₹8,043.82 to ₹11,437.71, which is manageable given the growth in assets but should be monitored closely.

Danish Power IPO Financial Analysis

Danish Power Limited IPO Peer Comparison

Danish Power Limited shows strong profitability with an EPS of ₹26.29 and RoNW of 46.36%. Indo Tech Transformers leads in P/E at 46.61, while Voltamp Transformers excels in income at ₹1,70,520.65 lakhs and high book value.

Danish Power Ltd IPO Objective

The main objective of Danish Power’s IPO is to utilize INR 36.99 crores for manufacturing facility expansion, INR 85 crores for working capital, INR 20 crores for loan repayment, and the remainder for general corporate purposes and project development.

1. Funding capital expenditure-expansion of manufacturing facility: The existing manufacturing facilities of the company are Sitapura Industrial Area, Jaipur, and Mahinda World City, Jaipur. The company proposes to utilize a total of INR. 36.99 crores towards funding capital expenditure towards the expansion of the manufacturing facility of the Company by the building of a factory shed and installation of additional plant and machinery therein. 

2. To meet working capital requirements: The business is working capital intensive as the major capital is invested in inventories and trade receivables. The Company will meet the requirement to the extent of INR 85 crores from the Net Proceeds of the Issue.

3. Repayment of borrowings:  The company plans to utilise INR 20 crores for the repayment of existing loans and borrowings.

4. General corporate purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations. 

Danish Power IPO Risks And Challenges

Danish Power’s revenue heavily relies on a limited number of customers, making it vulnerable to loss, which could adversely impact cash flows and financial health. Product design errors by the team may also affect operations. 

1. A substantial portion of the revenues has been dependent upon a few customers. The loss of any one or more of the major customers would have a material adverse effect on the business, cash flows, results of operations, and financial condition.

2. Product designing is a very important part of the equipment which is relied upon by the company’s team. Any loss or error by these employees may have an adverse effect on the equipment and operations.
3. Demand for the transformers and relay panels business is dependent on growth in the power generation, transmission, and distribution industry & infrastructure, which may contribute to fluctuations in the results of operations and financial condition.

Danish Power Ltd IPO  – Industry & Market Potential

India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro, and nuclear power, to viable non-conventional sources such as wind, solar, agricultural, and domestic waste. 

By 2025, for the first time in history, Asia will account for half of the world’s electricity consumption and one-third of global electricity will be consumed in China. Over the outlook period, global electricity demand is set to grow at an accelerated pace, by an annualised 3%, as electricity consumption increases in emerging markets and developing economies (EMDEs), led by the People’s Republic of China (hereafter “China”), India and Southeast Asia.

Danish Power Limited IPO – Type of Offer

Danish Power Limited is launching an IPO with a fresh issue of 5,208,000 shares valued at INR 197.90 crores. The funds will be utilized for expanding the existing manufacturing facility, meeting working capital requirements, repaying borrowings, and addressing general corporate purposes.

Danish Power IPO Offer Size

The offer size for Danish Power Limited’s IPO is 5,208,000 shares, amounting to INR 197.90 crores. The company plans to use the funds for expanding its manufacturing facility, meeting working capital requirements, repaying borrowings, and general corporate purposes.

Danish Power Limited IPO Allotment Structure

Danish Power Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 2,60,700 shares are reserved for market makers. 64,500 shares are reserved for eligible employees.

 ● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 2,60,700 shares, are reserved for market makers.

● Eligible Employees: A portion of shares, i.e. 64,500 shares, are reserved for eligible employees. 

How to apply for the Danish Power IPO?

To apply for the Danish Power Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Danish Power Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Danish Power Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Danish Power IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Danish Power Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Danish Power Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Danish Power Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Danish Power Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

 ● NSE SME: You can also check the allotment status on the official website of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Danish Power Ltd IPO Offer Registrar

The registrar for the Danish Power Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited

C – 101, 1st Floor, 247 Park,

Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400083 

Email: [email protected] 

Website: www.linkintime.co.in

Danish Power IPO  – FAQs

1. What is the allotment date of the Danish Power IPO? 

The allotment date of the Danish Power Limited IPO is October 25, 2024. 

2. What is the price band of the Danish Power IPO? 

The price band of the issue is INR 360-380 per share. 

3. What is the size of the Danish Power IPO? 

The offer size for Danish Power Limited’s IPO is 5,208,000 shares, amounting to INR 197.90 crores. The company plans to use the funds for expanding its manufacturing facility, meeting working capital requirements, repaying borrowings, and general corporate purposes.

4. What is the listing date of the Danish Power IPO? 

The listing date of Danish Power Limited’s IPO is October 29, 2024.