Danish Power Limited manufactures various types of transformers, including inverter duty transformers for use in renewable power projects such as solar power plants and wind farms. Danish Power IPO is set to raise Rs 197.90 crores. The issue is entirely a fresh issue of 52.08 lakh shares.
IPO opens
October 22, 2024
IPO Closes
October 24, 2024
IPO Size (Rs.)
₹197.90 Cr
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹360 to ₹380 per share
Minimum Lot
300 Shares
Listing At
NSE SME
QIB Quota
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Hem Securities Limited
Registrar
Link Intime
Market maker
Hem Finlease
About Danish Power IPO
Company is engaged in the business of manufacturing of different types of transformers including inverter duty transformers used in renewable power projects like solar power plant or wind farms, oil and dry type power and distribution transformers, control relay panel along with substation automation services.
These transformers and panels are used across various sectors and industries to facilitate the efficient transmission and distribution of electrical power such as renewable power EPC projects like solar power plant, wind power farms, other power generation plants, power transmission, electricity sub-stations, power utilities etc.
They own and operate through our 2 manufacturing facilities located at Jaipur, Rajasthan with an aggregate installed production capacity of 4681 MVA per annum for manufacturing of transformers and 576 units per annum for Control relay panels.
The company is family-owned by the Talwar family.
Financials: Danish Power IPO
June 30,
March 31,
June 30,
March 31,
March 31,
March 31,
Particulars/Rs Lacs
2024
2024
2024
2024
2023
2022
Equity Share Capital
1448.36
160.93
1448.36
160.93
160.93
160.93
Net Worth
9201.38
8,213.26
9245.43
8,213.25
4,405.89
3,548.80
Total Income
7273.29
33,463.84
7229.73
33,463.84
18,943.79
14,917.12
Profit after tax
998.21
3,807.28
1042.18
3,807.36
857.09
524.88
Net Asset Value
63.53
56.71
63.83
56.71
30.42
24.5
Total Borrowings
2393.07
1290.72
2,392.52
1,290.72
1,385.35
2,830.67
Post issue Share Capital
1969
FV
10.0
IPO price
380.0
EPS Fy24
24.6
PE Fy24
15.4
EPS Fy25 (annualized)
20.3
PE Fy25 (annualized)
18.7
Market cap in Lacs
74,822
Market cap / Sales
1.84
Danish Power IPO: Anchors
Danish Power IPO: Salient Points
The electrical equipment market share in India is expected to increase from US$ 52.98 billion in 2022 to US$ 125 billion by 2027, implying a robust CAGR of 11.68%. The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach US$ 72 billion by 2025. In FY23,
Net issue proceeds use:
S.No
Particulars
Amt
1
Funding capital expenditure towards expansion of the manufacturing facility of the Company by building of factory shed and installation of additional plant and machinery therein
3699.47
2
To meet working capital requirements
8500.00
3
Repayment of certain borrowing availed by our Company, in part or full
2,000.00
Products bifurcation and details year wise, overall capacity utilization:
Product Details
Transformers (in MVA)
Control relay Panels (in Units)
June 30, 2024
Installed Capacity*
1170
144
Actual Production
959
19
%
82
13
31-Mar-24
Installed Capacity
4681
576
Actual Production
3807
416
%
81
72
31-Mar-23
Installed Capacity
2705
486
Actual Production
1953
346
%
72
71
31-Mar-22
Installed Capacity
1955
452
Actual Production
1386
298
%
71
66
Their customers include companies like Tata Power Solar System Ltd, Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited & Torrent Power.
PE 2024: 16x.
Peers:
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RONW %
Danish Power
380.0
334.64
48.49
14.5%
15.4
1.84
46.36
Indo Tech Transformers
2,183
509.92
47.00
9.2%
47.1
4.71
21.58
Shilchar Technologies
7110
409.71
92.00
22.5%
54.5
12.4
43.84
Voltamp Transformers
605
1705.21
307
18.0%
38.8
7.57
22.71
As of September 30, 2024, Company’s has an order book of around Rs. 37125.68 Lakh at order value less amount billed representing manufacturing and supply of transformers and relay panels.
With the increase in demand for transformers used in solar power plant and wind farm their revenue share from Inverter duty transformer have increased from 5570.14 lakhs in FY2022 to Rs. 23628.60 lakhs in FY2024 representing a CAGR growth of approximately 105.89% from year 2022 to year 2024.
The company has also won EEPC National Award for export excellence in the product group ‘Ttransformers’ for 3 consecutive years.
Exports account for 5% of its revenues.
I intend to apply in Danish Power IPO. company is planning to use the proceeds of the IPO for their expansion and debt clearance. Transformer sector is witnessing strong demand which is reflected in company’s orderbook. with focus on renewable energy transformers, Danish Power Limited looks poised for continued growth.
GMP as reported on social media is Rs. 175 (62%)
Lead manager Hem Securities Limited has quite decent record and enjoys good standing.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
