Danish Power IPO Day 1: Issue Booked More Than 4 Times, GMP Soars 70%

The initial share sale of Danish Power Ltd., a transformer manufacturer, opened for bidding on Tuesday. The Danish Power IPO is an entirely fresh issue of 52.08 lakh shares worth Rs 197.90 crore. The subscription window for this public offer, the biggest in the small and medium enterprises (SME) segment, will remain open till Oct. 24.

Investors interested in the Danish Power IPO should check the following details before bidding for its shares.

The allotment of shares in the Danish Power IPO is likely on Oct. 25. The shares will be credited to the demat accounts of successful bidders on Oct. 28. Refunds for those who fail to secure allotment in Danish Power IPO will also be initiated on the same day.

Shares of Danish Power are likely to list on Oct. 29 on the NSE SME platform, Emerge.

The Danish Power IPO price band has been set at Rs 360-380 per share. Retail investors are required to buy at least 300 shares in a single lot, totalling a minimum investment of Rs 1.14 lakh per application.

Link Intime India Pvt. is the registrar for the Danish Power IPO.

Hem Securities Ltd. is the book-running lead manager of the issue and Hem Finlease is the market maker.

The Danish Power IPO was subscribed 4.19 times on Tuesday.

• Qualified institutional buyers: 3.67 times

• Non-institutional investors: 3.62 times.

• Retail investors: 4.88 times.

The grey market premium (GMP) on the Danish Power IPO was Rs 265 as of 8:28 p.m. on Oct. 22, indicating a listing at a premium of 69.74% over the issue price. As per InvestorGain, shares of Danish Power Ltd. are expected to list at Rs 645 apiece.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Danish Power produces different types of transformers including inverter duty transformers and oil and dry type power and distribution transformers. The company also manufactures control relay panels and provides substation automation services.

It has two manufacturing units in Jaipur: One at the Sitapura Industrial Area and the other at Mahindra World City.

The company’s clientele includes Tata Power Solar System Ltd., Jakson Green Pvt., Waaree Renewable Technologies Ltd., ABB India Ltd. and Torrent Power Ltd.

Danish Power will use the proceeds from the IPO to fund the capital expenditure on building a shed and installing an additional plant and machinery at its Mahindra World City unit.

The company will also use the funds for working capital requirements, repayment of debt and general corporate purposes.

Danish Power posted a revenue of Rs 72.73 crore for the quarter ended June in the current financial year, while its profit after tax stood at Rs 9.98 crore. In fiscal year 2024, the revenue was recorded at Rs 334.63 crore with Rs 38.07 crore PAT.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.