Divine Power Energy Limited manufactures winding wires and strips using copper or aluminium. These are crucial for transformers and power distribution, controlling voltage from generation to the end user. Their products, including annealed and insulated wires and strips, are supplied to transformer makers and electricity distribution providers.
Peers in the Market
According to the company’s red herring prospectus (RHP), its listed competitors include:
- Shera Energy Ltd: P/E ratio of 34.17
- Bhagyanagar India Ltd: P/E ratio of 7.63
- Rajnandini Metal Ltd: P/E ratio of 19.49
- Ram Ratna Wires Ltd: P/E ratio of 32.83
- Precision Wires India Ltd: P/E ratio of 33.60
Between March 2023 and March 2024, Divine Power Energy saw a 124.82% increase in profit after tax (PAT) and a 47.65% rise in revenue.
IPO Subscription Status
Divine Power’s IPO was fully subscribed on the first day, reaching 2.45 times the available shares:
- Retail Investors: Subscribed 3.95 times
- Non-Institutional Investors (NII): Subscribed 2.26 times
- Qualified Institutional Buyers (QIB): No subscriptions yet
The company received bids for 1,03,95,000 shares against the 42,34,222 shares on offer by 12:15 IST, according to chittorgarh.com.
IPO Details
The IPO, valued at ₹22.76 crore, includes the issuance of 5,690,000 new equity shares at a face value of ₹10 each. There is no offer-for-sale component. The funds raised will be used for general corporate purposes and to meet the company’s working capital needs.
- Book Running Lead Manager: Khambatta Securities Limited
- Registrar: Bigshare Services Pvt Ltd
- Market Maker: Nikunj Stock Brokers
Key Dates
- Allotment Finalisation: Friday, 28 June
- Refunds Initiation: Monday, 1 July
- Shares Credited to Demat Accounts: Monday, 1 July
- Expected Listing Date: Tuesday, 2 July on NSE SME
Grey Market Premium (GMP)
Today, Divine Power’s IPO is trading at a grey market premium of ₹51. This suggests that the shares are expected to list at around ₹91 each, 127.5% higher than the IPO price of ₹40. The grey market premium indicates investors are willing to pay more than the issue price.
This positive response to Divine Power’s IPO on Day 1 highlights strong demand among retail and non-institutional investors. Keep an eye on the final subscription figures and upcoming key dates for allotment and listing.
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