Divine Power Energy shares list at over 287% premium on NSE SME platform

Divine Power Energy Ltd, a small and medium enterprise (SME) that manufactures insulated and bare copper and aluminium wires and strips in India, made a blockbuster trading debut on Tuesday, July 2, with the stock listing at over 287% premium on the NSE Emerge platform.

The Divine Power Energy stock opened the session at ₹155 on Tuesday, up 287.5% compared with its initial public offering (IPO) price of ₹40. Within minutes of trade, the shares rallied further to hit an intra-day high of ₹162.75 apiece. However, it later trimmed some of its gains to trade at ₹149.2 at 10:15 am, down 3.7% from its opening price.

Since the minimum bid quantity in the issue was 3,000 shares, Tuesday’s listing meant that successful bidders who were allotted shares in the Divine Power Energy IPO were successfully sitting on a profit of at least ₹3.45 lakh (₹115 x 3,000) as soon as trading began in the stock.

The Divine Power Energy IPO, which was open for bidding from June 25 to June 27, had seen an overwhelming investor interest and garnered a subscription of a whopping 394 times during the three-day bidding period.

The retail quota was the most in-demand and was subscribed almost 508 times. The non-institutional investors’ (NII) category was just behind, with nearly 474 times of subscriptions. The portion reserved for qualified institutional buyers (QIBs), meanwhile, was overbid 136 times.

The Divine Power Energy IPO was a 100% book-built issue worth ₹22.76 crore. The public offer was entirely a fresh issuance of 56.9 lakh shares of face value of ₹ 10 each, with no offer-for-sale (OFS) component.

The offer's price band was set at ₹36-40 per share, and the lot size was 3,000 shares. Ahead of the IPO launch, Divine Power also raised ₹6.48 crore from anchor investors on June 24. The company allocated 16.2 lakh shares to five anchor investors at ₹40 apiece.

Divine Power Energy announced that it intended to use the proceeds of the issue to meet the company's working capital requirements and for general corporate purposes.

Divine Power Energy (formerly known as PDRV Enterprises Pvt Ltd) was incorporated in 2001. It manufactures bare copper/aluminium wire, bare copper/aluminium strip, winding copper/aluminium wire, and winding copper/aluminium strip. Winding wires/strips are produced by annealing and insulating wires/strips and covering them with materials like paper, cotton and fibreglass.

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