Danish Power Launches Biggest IPO In SME Segment, Aims To Raise Rs 198 Crore; Check Subscription & More

Danish Power, a player in the transformer manufacturing industry, has officially launched its SME initial public offering (IPO) for public subscription on October 22. This offering aims to raise approximately Rs 198 crore in the primary market and will remain open for three days, concluding on October 24. With a price band set between Rs 360 and Rs 380 per share and a lot size of 300 shares.

This Rs 197.90 crore issue marks the largest IPO in the SME segment to date. Prior to this, the record was held by KP Green Engineering, which raised Rs 189.5 crore in March 2024, followed by Sahasra Electronics Solutions with a Rs 186.2 crore IPO in September. The surge in IPOs of this scale reflects a growing interest in the SME sector, as 2024 has become the first year to witness nine SME IPOs exceeding Rs 100 crore each, compared to only one such IPO in 2023, which was Spectrum Talent Management's Rs 105 crore offering.

About Danish Power

Founded in 1985 and based in Jaipur, Danish Power has established itself as a competitor in the transformer manufacturing sector. The company is family-owned by the Talwar family and operates two manufacturing facilities in the "Pink City." Danish Power competes with entities in the market, such as Indo Tech Transformers, Shilchar Technologies, and Voltamp Transformers. The firm supplies transformers and panels to customers, including Tata Power Solar System, Waaree Renewable Technologies, Jakson Green, ABB India, and Torrent Power.

Investors interested in participating in this IPO must consider that the minimum investment per lot is Rs 1,08,000, while the maximum investment size is Rs 1,14,000. With a focus on growth and expansion, Danish Power is set to utilize the funds raised from this IPO for multiple strategic initiatives.

Out of the net issue proceeds, Rs 37 crore will be allocated towards building a new factory shed and installing additional plant and machinery to enhance production capabilities. Furthermore, Rs 85 crore will be dedicated to meeting the company's working capital requirements, which are crucial for sustaining operations and supporting growth initiatives. The company will also allocate Rs 20 crore for debt repayment. The remaining funds will be utilized for general corporate purposes.

The merchant banker handling the Danish Power IPO is Hem Securities. Link Intime India is appointed as the registrar for the offer.

As the subscription window opens, market analysts are keenly observing investor sentiment and the overall response to the offering. Given the growing demand for transformers in renewable energy and infrastructure projects, Danish Power is positioned well to benefit from market trends.