Danish Power’s SME IPO Launches Today, Check Issue Size, GMP, Price Band and Other Details

The highly anticipated SME IPO of Danish Power is opening for subscription today, October 22, and will remain available until October 24. This is set to be the largest SME IPO of the year, aiming to raise ₹197 crore and list its shares on the NSE SME platform. Here are 10 important details investors should know before diving into this offering.

Danish Power IPO Size

The IPO involves a fresh equity sale of 52.08 lakh shares, targeting a total fundraising of approximately ₹197 crore.

Danish Power IPO Price Band

Shares are priced between ₹360 and ₹380 each, with a minimum bid requirement of 300 shares per lot.

Danish Power GMP

In the unlisted market, the shares are currently showing a Grey Market Premium (GMP) of ₹265, indicating a 70% premium over the issue price.

About Danish Power

Danish Power specializes in manufacturing various types of transformers, including inverter duty transformers for renewable energy projects like solar and wind farms. The company also produces oil and dry-type power transformers, distribution transformers, control relay panels, and provides substation automation services.

Industry Overview

The heavy electrical equipment sector in India was valued at ₹2.44 lakh crore in FY23, experiencing a nearly 13% growth with exports reaching $10.19 billion during the first three quarters of FY24.

Danish Power Financial Performance

For the year ending March 2024, the company reported operational revenue of ₹335 crore, with a profit after tax of ₹38.07 crore.

Objectives of the Offer

The funds raised will support Danish Power’s ongoing operations in manufacturing a range of transformers, which are crucial for renewable energy projects.

Lead Managers and Registrar

Hem Securities is the lead manager for this IPO, while Link Intime India serves as the registrar.

Issue Structure

The allocation of shares is structured as follows: 50% for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.

Important Dates

The IPO opened on October 22 and will close on October 24. Allotment of shares is expected by October 25, with the listing anticipated on October 29.

Investors are encouraged to consider this promising opportunity as they look to engage in the growing renewable energy sector through Danish Power’s offerings.