Danish Power, a key player in the transformer manufacturing industry, officially launched its SME initial public offering (IPO) on October 22, 2024, aiming to raise Rs 197.90 crore. This IPO, the largest in the SME segment so far, is open for public subscription until October 24, 2024. Shares are priced within a band of Rs 360 to Rs 380, with a minimum lot size of 300 shares, translating to an investment between Rs 1,08,000 and Rs 1,14,000.
Founded in 1985 and based in Jaipur, Danish Power is a family-owned business under the Talwar family. It operates two manufacturing plants in Jaipur and competes with other industry players such as Indo Tech Transformers, Shilchar Technologies, and Voltamp Transformers. The company provides transformers and panels to clients like Tata Power Solar Systems, Waaree Renewable Technologies, Jackson Green, ABB India, and Torrent Power.
The proceeds from the IPO will be used for strategic growth, including Rs 37 crore for a new factory shed and additional machinery to boost production capacity. Rs 85 crore will be allocated for working capital, Rs 20 crore will go toward debt repayment, and the rest will cover general corporate purposes.
This year has seen a rise in large SME IPOs, with 2024 being the first year to witness nine SME IPOs exceeding Rs 100 crore each, compared to just one in 2023. Prior to Danish Power’s offering, the largest SME IPO was KP Green Engineering, which raised Rs 189.5 crore in March 2024, followed by Sahasra Electronics Solutions’ Rs 186.2 crore IPO in September 2024.
As market analysts keep a close eye on the subscription trends, Danish Power is well-positioned to capitalize on the growing demand for transformers, particularly from renewable energy and infrastructure sectors. Hem Securities is the merchant banker for the IPO, while Link Intime India serves as the registrar.
Disclaimer: This information is provided for general informational purposes only and does not constitute financial or investment advice. Investing in IPOs involves risks, and potential investors should conduct their own research or consult a licensed financial advisor before making any investment decisions. The data presented is based on publicly available information at the time of writing, and no responsibility is assumed for any errors, omissions, or changes in the market. Past performance is not indicative of future results.
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