Danish Power IPO: Biggest-ever SME public issue to open on Oct 22; check price band, lot size and key details

Danish Power, a transformer manufacturer, is poised to launch the biggest-ever initial public offering (IPO) in the SME segment. The ₹197.90 crore IPO, which has set a price band of ₹360-₹380 per share, will be open for subscription from Tuesday, October 22, to Thursday, October 24.

The maiden public issue is an entirely fresh issue of 52.08 lakh equity shares. The bidding for anchor investors will take place for a day on October 21.

The company will use the money raised for installing additional plant and machinery, building a factory shed, repaying debt, and for general corporate purposes.

Prior to Danish Power, the largest SME IPO was KP Green Engineering, which had a issue size of ₹189.5 crore.

Danish Power IPO: Lot size

Investors can apply for a minimum of one lot size, consisting of 300 shares worth ₹1,14,000. For high-net-worth individuals, the minimum investment is two lots valued at ₹2,28,000.

Half of the net issue has been set aside for qualified institutional buyers (QIBs), 35% for retail investors and the remaining 15% for non-institutional investors.

Hem Securities Limited is the IPO's book-running lead manager, while Link Intime India is the registrar.

Danish Power IPO: Allotment and listing date

After the IPO closes for subscription on October 24, the allotment status will likely be finalised on October 25. Shares will be listed on the NSE SME platform Emerge on October 29.

Danish Power IPO: About the company

The company manufactures different types of transformers such as inverter duty transformers used in renewable power projects like wind farms and solar power plant, oil and dry type power and distribution transformers, control relay panel along with substation automation services.

These transformers and panels facilitate the transmission and distribution of electrical power, such as renewable power EPC projects like solar power plants, wind power farms, other power generation plants, power transmission, power utilities, and electricity substations. The company's customers include Tata Power Solar System Ltd, Jakson Green Pvt Ltd, Waaree Renewable Technologies Ltd, Torrent Power Ltd, and ABB India Ltd.

The company posted a consolidated profit after tax (PAT) of ₹38.07 crore and a revenue of ₹332.5 crore for the financial year 2023-24 (FY24). The PAT and revenue for Q1 FY25 stood at ₹9.98 crore and ₹71.93 crore, respectively.