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Danish Power, a transformer manufacturing company, is launching its IPO, the largest in the SME segment this year. The IPO will open for subscription on October 22 and will close on October 24.
The company aims to raise nearly ₹198 crore by issuing 52.08 lakh fresh equity shares. The IPO price range is set between ₹360 and ₹380 per share.
The funds raised will be used to expand the company’s manufacturing facility by building a new factory shed and installing more equipment. The rest of the money will go towards working capital needs, repaying debt, and other general corporate purposes.
Danish Power produces different types of transformers, such as inverter duty transformers used in solar and wind power projects, along with power and distribution transformers. They also offer substation automation services and control relay panels. These products help in efficiently transmitting and distributing electricity in sectors like renewable energy, power plants, transmission systems, and utilities.
Some of the company’s key clients include Tata Power Solar, Waaree Renewable Technologies, Jakson Green, ABB India, and Torrent Power. The Indian electrical equipment market is expected to grow significantly, from $52.98 billion in 2022 to $125 billion by 2027, with a growth rate of 11.68%. By 2025, the domestic market could reach $72 billion, growing at an annual rate of 12%.
In FY23, Danish Power generated ₹335 crore in revenue and posted a profit of ₹38.07 crore.
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