On October 22, 2023, the highly anticipated Danish Power IPO officially launched, marking it as the largest SME issue of the year. With a significant amount of investor interest, this IPO presents a vital opportunity for the growth and expansion of a leading company in the manufacturing sector. The IPO, which will last until October 24, has already stirred excitement among various investor categories, indicating strong market confidence.
| IPO Overview | Subscription Status | Grey Market Premium (GMP) | IPO Details | Important Dates for Investors | Company Background | Expert Opinion | Conclusion | FAQ |
|---|
IPO Overview
The Danish Power IPO plans to raise ₹197.90 crore through the issuance of shares priced between ₹360 to ₹380 each. The minimum investment for retail investors is 300 shares (totaling approximately ₹1.14 lakh), while High Net-Worth Individuals (HNIs) must invest in at least 600 shares (costing around ₹2.28 lakh for two lots).
Subscription Status
As of the first day of the IPO, the subscription rate reached 1.29 times by 2:10 PM. The breakdown reveals a robust enthusiasm as retail investors subscribed 2 times, while non-institutional investors (NII) subscribed 1.22 times. However, qualified institutional buyers (QIBs) showed less interest, with a subscription of only 0.19 times.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) currently stands at ₹265 per share. Predictions indicate an expected listing price of ₹645, suggesting a remarkable 70% premium over the maximum issue price.
IPO Details
This IPO encompasses a fresh issue of 52.08 lakh shares. The proceeds from the IPO are earmarked for several key areas:
- Capital expenditure for expansion, including a new factory shed and additional machinery
- Working capital requirements
- Repayment of specific borrowings
- General corporate purposes
Important Dates for Investors
Investors should be aware of the following dates regarding the IPO process:
| Event | Date |
|---|---|
| IPO Allotment Finalization | October 25, 2024 |
| Refunds Initiation and Credit to Demat | October 28, 2024 |
| Listing Date | October 29, 2024 |
| Exchange Platform | NSE SME |
Company Background
Danish Power was founded in July 1985 and has established itself as a key player in the manufacturing sector, specializing in various types of transformers. Their product offering includes:
- Inverter duty transformers
- Power and distribution transformers
- Control relay panels
- Substation automation services
Expert Opinion
Dilip Davda, an analyst, recommends a cautious investment approach for this IPO. Observations indicate that the company has shown a sudden boost in profits from FY24 onward, urging potential investors to conduct proper due diligence and consider long-term investments.
Conclusion
The Danish Power IPO signifies a substantial opportunity within the SME sector in 2023, attracting considerable interest from retail and institutional investors. With promising financial metrics, the company is positioned for growth. However, it is essential for potential investors to make informed decisions and consult financial experts to navigate the complexities of stock investments.
FAQ
Q: What is the price band for the Danish Power IPO?
A: The price band for the IPO is between ₹360 to ₹380 per share.
Q: When is the listing date for the IPO?
A: The listing date is October 29, 2024.
Q: How much money does Danish Power aim to raise through this IPO?
A: The company plans to raise ₹197.90 crore.
