Divine Power Energy Limited is launching an IPO with a fresh issue of 56,90,000 shares worth INR 22.76 crores. The company aims to meet the working capital requirements and general corporate purpose.
Divine Power IPO – Important Dates
| Divine Power Energy Limited IPO Date | June 25, 2024, to June 27, 2024 |
| Divine Power Energy Limited IPO Listing Date | July 2, 2024 |
| Divine Power Energy Limited IPO Price | INR 36-40 per share |
| Divine Power Energy Limited IPO Lot Size | 3000 shares |
| Divine Power Energy Limited IPO Total Issue Size | INR 22.76 crores |
| Divine Power Energy Limited IPO Basis of Allotment | June 28, 2024 |
| Divine Power Energy Limited IPO Initiation of Refunds | July 1, 2024 |
| Divine Power Energy Limited IPO Credit of Shares to Demat | July 1, 2024 |
| Divine Power Energy Limited IPO Issue Type | Book Built Issue IPO |
| Divine Power Energy Limited IPO Listing At | NSE SME |
Divine Power Energy Limited IPO – Company Profile
Divine Power Energy Limited manufactures and supplies winding wires and strips covered with paper, cotton, fiberglass, and super enamel. These products are crucial components for manufacturing transformers, which are essential for power transmission and distribution.
Recognizing the importance of transformer maintenance, it supplies winding wires/strips insulated with paper, cotton, and fiberglass. These components are crucial for preventing short circuits, addressing wear and tear, and meeting the demand from power distribution companies.
Divine Power Energy Limited maintains stable demand with clients like TATA Power Limited, BSES, and various regional power distribution companies. Sourcing raw materials from trusted suppliers like NALCO and Hindalco ensures uninterrupted production.
Divine Power Energy Ltd IPO Fundamental Analysis
Divine Power Energy Limited Technologies’ financial analysis reveals a mixed performance. Revenue has shown a consistent upward trend, reflecting steady growth. Equity has increased, reducing reliance on debt. Profitability has surged, boosting investor confidence. Earnings per share and return on net worth have also improved.
- Revenue Trend: The revenue increased from ₹12,249.09 lakhs in March 2022 to ₹15,058.53 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 22,208.00 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹80.51 lakhs in March 2022 to ₹640.59 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.66 in March 2022 to ₹4.06 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 6.46% to 25.06%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
Divine Power IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 12,249.09 | 15,058.53 | 22,208.00 |
| Equity (₹ in lakhs) | 1,246.00 | 1,915.94 | 2,556.53 |
| Expenses (₹ in lakhs) | 12,179.27 | 14,619.87 | 21,456.34 |
| Profit and Loss After Tax (₹ in lakhs) | 80.51 | 284.94 | 640.59 |
| Diluted EPS only (₹) | 0.66 | 2.31 | 4.06 |
| Return on Net Worth (%) | 6.46 | 14.87 | 25.06 |
| NAV per Equity Share (₹) | 10.15 | 15.51 | 16.20 |
| Total Assets (in lakhs) | 6,276.46 | 7,253.31 | 8,889.24 |
| Total Liabilities (in lakhs) | 5,026.46 | 5,337.37 | 6,332.71 |
| Debt Equity Ratio | 3.58 | 2.49 | 2.26 |
| Current Ratio (in times) | 1.45 | 1.36 | 1.29 |
Divine Power Energy Limited IPO Peer Comparison
Among the listed companies, Divine Power Energy Limited stands out with a commendable RoNW of 25.06% and EPS of ₹4.06, reflecting strong profitability and shareholder value, positioning it favorably among its peers.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| Divine Power Energy Limited | 22,272.00 | 10 | – | 4.06 | 25.06 | 16.20 |
| Shera Energy Limited | 87,631.88 | 10 | 34.17 | 5.21 | 11.00 | 56.02 |
| Bhagyanagar India Limited | 1,47,480.35 | 2 | 7.63 | 14.29 | 23.65 | 60.44 |
| Rajnandini Metal Limited | 1,22,093.00 | 1 | 19.49 | 0.55 | 26.87 | 2.05 |
| Ram Ratna Wires Limited | 2,98,324.79 | 5 | 32.83 | 11.88 | 12.64 | 98.20 |
| Precision Wires India Limited | 3,32,100.06 | 1 | 33.60 | 4.08 | 14.39 | 28.35 |
Divine Power Energy Ltd IPO Objective
The main objective of Divine Power Energy Limited is to meet the company’s working capital requirements.
- To meet working capital requirements, including margin money: The company intends to utilize INR 18 crores of the Net Proceeds for its estimated working capital requirements in Fiscal 2025, with any remaining balance to be met from working capital facilities and internal accruals.
- General Corporate Purpose: The Company will deploy the balance of funds towards general corporate purposes, including strategic initiatives, capital expenditure, brand building, strengthening marketing activities, product enhancement, and addressing ongoing corporate exigencies.
Divine Power IPO Risks And Challenges
Divine Power Energy Limited’s risks include heavy reliance on working capital, the absence of firm customer commitments, operational risks in manufacturing, and potential labor disputes, all of which could impact operations and financial stability.
- Meeting requirements is crucial for a working capital-intensive business; failure could adversely affect operations, sales, profitability, cash flow, and liquidity, highlighting the importance of effective inventory management for sustained performance.
- Their business operates without firm customer commitments, relying instead on purchase orders. Sustained customer relationships are vital. Without long-term contracts or exclusive agents, shifts in purchasing behavior or loss of significant customers could adversely affect revenue, cash flow, and operations.
- Their manufacturing operations in Sahibabad face operational risks like equipment failure and natural disasters. With 40 employees, labor relations are critical; potential disputes could disrupt operations, negatively impacting the business. While past disruptions were limited, future events could affect operations and financials.
Divine Power Energy Ltd IPO – Industry & Market Potential
The electrical equipment market, valued at $1,619.07 billion in 2023, will grow to $1,728.91 billion in 2024 (CAGR: 6.8%) and reach $2,193.05 billion by 2028, driven by innovation, energy efficiency, and strategic collaborations.
Power infrastructure is crucial for economic growth. India aims for universal access to affordable, sustainable power. The global power generation market size was estimated at USD 1.94 trillion in 2022 and is expected to reach USD 3.9 trillion by 2032.
India’s electricity sector will transform significantly in the coming decade, focusing on demand growth, clean energy transition, and market operations. Future investments will capitalize on strong demand, policy support, and infrastructure focus.
Divine Power Energy Limited IPO – Type of Offer
Divine Power Energy Limited is launching an IPO with a fresh issue of 56,90,000 shares worth INR 22.76 crores. The company aims to meet the working capital requirements and general corporate purpose.
Divine Power IPO Offer Size
The main objective of Divine Power Energy Limited is INR 22.76 crores, consisting of a fresh issue of 56,90,000 shares. The company seeks funds to meet the working capital requirements and general corporate purpose.
Divine Power Energy Limited IPO Allotment Structure
Divine Power Energy Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 288,000 shares are reserved for market makers.
● 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): 35% 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 15% 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. 288,000 shares, are reserved for marker makers.
How to apply for a Divine Power Energy Limited IPO?
To apply for the Divine Power Energy Limited IPO through Alice Blue, you would typically 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.
- Check for IPO Details: Once your account is active, you can check for the Divine Power Energy Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Divine Power Energy 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 Divine Power Energy Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- 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.
- 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.
- Select the Divine Power Energy 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 Divine Power Energy Limited IPO.
- 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, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Divine Power Energy Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Divine Power Energy 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 websites 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.
Divine Power Energy Limited Ltd IPO Offer Registrar
The registrar for the Divine Power Energy Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
S6-2, 6th Pinnacle Business Park,
Mahakali Caves Road, next to Ahura Centre,
Andheri East, Mumbai–400093,
Maharashtra, India.
Tel.: +91 22 6263 8200, Fax: +91 22 6263 8299
E-Mail: [email protected]
Website: www.bigshareonline.com
Divine Power Energy Limited Limited IPO – FAQs
1. What is Divine Power Energy Limited’s allotment date?
The allotment date of the Divine Power Energy Limited IPO is June 28, 2024.
2. What is the price band of the Divine Power Energy Limited IPO?
The price band of the issue is INR 36-40 per share.
3. What is the size of the Divine Power Energy Limited IPO?
The main objective of Divine Power Energy Limited is INR 22.76 crores, consisting of a fresh issue of 56,90,000 shares. The company seeks funds to meet the working capital requirements and general corporate purpose.
4. What is the listing date of the Divine Power Energy Limited IPO?
The listing date of Divine Power Energy Limited’s IPO is July 2, 2024.
