NSE SME Danish Power makes a sizzling debut

Shares of Danish Power were trading at Rs 598.50 on the NSE, a premium of 57.50% compared with the issue price of Rs 380.

The scrip was listed at Rs 570, a premium of 50% over the initial public offer (IPO) price. The stock was currently frozen at its upper limit of 5% compared to its listing price.

The counter hit a high of Rs 598.50 and a low of Rs 541.50. About 24.01 lakh shares of the company changed hands at the counter.

Danish Power's IPO was subscribed 117.89 times. The issue opened for bidding on 22 October 2024 and it closed on 24 October 2024. The price band of the IPO was set at Rs 360 to Rs 380 per share.

 

The IPO comprised fresh issue of 52,08,000 shares. The promoter and promoter group shareholding diluted to 73.55% from 99.99% pre-IPO.

The company intends to utilize the net proceeds for funding capital expenditure towards expansion of the manufacturing facility of the company by building of factory shed and installation of additional plant and machinery, working capital requirements, repayment of certain borrowing availed by the company and for general corporate purpose.

Ahead of the IPO, Danish Power on 21 October 2024, raised Rs 55.63 crore from anchor investors. The board allotted 14.64 lakh shares at Rs 380 per share to 19 anchor investor.

Danish Power engaged in manufacturing 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. The product portfolio of the company is a) inverter duty transformers (multi-winding) upto 20 MVA 33 kV Class for solar plants, transformers for wind turbine generator, b) distribution transformers upto 5 MVA 33 kV class, c) power transformers upto 63 MVA 132 kV class and panels includes control relay panels upto 400 kV class, substation automation (SCADA), bus bar protection panels, LT panels, APFC panels. As of 30 June 2024, the company had 346 employees.

The company recorded revenue from operations of Rs 71.93 crore and net profit of Rs 9.98 crore for the period as on 30 June 2024.

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