Danish Power Shares Hit 5% Lower Circuit After Listing At 50% Premium

Share price of Danish Power Ltd. made a stellar debut on the NSE SME platform on Tuesday. The stock listed at Rs 570 apiece on the NSE, marking a premium of 50% over the IPO’s upper price band of Rs 380.

Investors, who were allotted a single lot of 300 shares in the Danish Power IPO, would have made a profit of Rs 57,000, against an investment of Rs 1,14,000.

Danish Power Ltd. shares, however, fell to hit a 5% lower circuit at Rs 541.50 apiece on the NSE after listing at a premium.

Danish Power IPO GMP trends hinted at a premium of Rs 246 or 64.74% over the issue price just before the shares got listed on Tuesday. 

The anticipated listing price of the Danish Power IPO was coming at Rs 626 per share, indicating a higher listing, according to InvestorGain.

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

Danish Power IPO opened for subscription between Oct. 22 and Oct. 24, and received a strong response from investors.

The IPO got subscribed 126.72 times over the three days of bidding, led by bumper demand from non-institutional investors.

NIIs bid for 275.92 times the shares reserved for them. The issue was subscribed 104.79 times in the qualified institutional buyers category and 79.88 times in the retail category.

Danish Power IPO was an entirely fresh issue of 52.08 lakh shares amounting to Rs 197.90 crore. 

The IPO's price band was fixed at Rs 360 to Rs 380 per share. Retail investors could have bid in the IPO with a minimum lot size of 300 shares, and multiples thereof. 

The share allotment of the IPO was finalised on Oct. 25. Link Intime India Pvt. was the registrar for the Danish Power IPO. 

Danish Power said that it would use the net proceeds from the IPO to fund capital expenditures on the expansion of its manufacturing unit at Mahindra World City in Jaipur. 

A portion of the funds will also be used for clearing debts, working capital requirements and general corporate purposes.

Danish Power Ltd. manufactures various types of transformers, including inverter duty transformers that are used in renewable power projects. The company also makes oil and dry-type power and distribution transformers; control relay panels, and offer substation automation services. 

Danish Power has two manufacturing units in Jaipur at Sitapura Industrial Area and Mahindra World City.