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TCS, HDFCBANK, SBI Liquid Fund (G)
Danish Power Ltd.

DANISH

Equity

NSE

Min. Investment

3,60,000.00

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IPO Details

Bidding Dates

22 Oct 24 - 24 Oct 24

Price Range ₹

360 - 380

Total Equity

197.90Cr

Lot Size

300

Exchange Status

NSE

IPO Doc

Subscription Rate

Non-Institutional Investor

0.00×

Qualified Institutional Buyers

0.00×

Employees

0.00×

Retail Investors

0.00×

Total subscription Rate

0.00×

IPO Timeline

Offer start

22 Oct 2024

Offer end

24 Oct 2024

Allotment

25 Oct 2024

Refund initiation

28 Oct 2024

Demat transfer

28 Oct 2024

Listing

29 Oct 2024

About Company

Founded in July 1985, Danish Power Limited specializes in manufacturing various types of transformers, including inverter duty transformers for renewable energy projects like solar power plants and wind farms. The company also produces oil and dry-type power and distribution transformers, control relay panels, and offers substation automation services. Their product portfolio includes: - Inverter Duty Transformers (multi-winding) up to 20 MVA, 33 kV Class, for Solar Plants, and Transformers for Wind Turbine Generators - Distribution Transformers up to 5 MVA, 33 kV Class - Power Transformers up to 63 MVA, 132 kV Class - Control Relay Panels up to 400 kV Class, Substation Automation (SCADA), Bus Bar Protection Panels, LT Panels, and APFC Panels Danish Power operates two manufacturing plants in Jaipur, one in the Sitapura Industrial Area and the other in Mahindra World City. The Mahindra World City facility is certified for Quality Management (ISO 9001:2015), Environmental Management (ISO 14001:2015), and Occupational Health and Safety (ISO 45001:2018) for the design, development, and manufacturing processes. The company serves notable clients such as Tata Power Solar System Ltd, Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited, and Torrent Power Limited. Competitive Strengths: - Advanced manufacturing facilities with state-of-the-art equipment ensuring smooth and timely production - Strong long-term relationships with clients due to consistent quality and on-time delivery - A diverse product range catering to industries like solar and wind energy, conventional power generation, power transmission, electricity substations, and utilities - An experienced management team - As of March 31, 2024, the company had 343 full-time employees along with additional contract staff.

Year Founded

10-07-1985

Promotor Details

Dinesh Talwar

Promoter Holdings Details

ParticularPre-IPOPost-IPO
Percentage99.9973.55
Share Capital1448358314483583

Offer to Public

52,08,000.00 Cr

Project Details

  • To meet working capital requirements - 850cr
  • Funding capital expenditure towards expansion of the manufacturing facility of the Company by buildi - 369.947cr
  • Repayment of certain borrowing availed by our Company, in part or full - 200cr

Objectives

  • 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.2) To meet working capital requirements.3) Repayment of certain borrowing availed by our Company, in part or full.4) General Corporate Purpose.

Highlights

  • Danish Power is certified with ISO 9001:2015 for quality management, ISO 14001:2015 for environmental management, and ISO 45001:2018 for occupational health and safety management systems, demonstrating its commitment to maintaining high standards in all aspects of its operations.
  • The company serves reputable clients such as Tata Power Solar, Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited, and Torrent Power Limited, which reflects its reliability and strong position in the market.
  • Danish Power operates two manufacturing plants with a combined capacity of approximately 4,681 MVA for transformer production. The facilities are equipped with state-of-the-art machinery, enabling efficient and high-quality production.
  • The company’s testing facility is accredited by NABL, allowing it to conduct routine and specialized tests in accordance with industry standards. This capability enhances product reliability and customer confidence.
  • Danish Power has demonstrated a steady increase in revenue from operations, with standalone revenue rising from Rs 148.63 crore in FY22 to Rs 188.70 crore in FY23, indicating strong financial performance and business growth over recent years.

Challenges

  • Danish Power relies heavily on a small number of suppliers for essential raw materials. Any fluctuations in the availability of these materials or delays in procurement could disrupt production, negatively impacting operations and financial performance.
  • The company exclusively designs and manufactures products for large industries, EPC service providers, and public utilities, leaving it vulnerable to fluctuations in demand from these sectors. A decline in demand could adversely affect its operations and revenue.
  • A significant portion of Danish Power's revenue is generated from a limited number of customers, with the top 10 customers contributing 88.04%, 76.75%, and 79.86% to revenue in FY24, FY23, and FY22, respectively. Any loss of these key clients or a reduction in their orders could significantly impact the company's financial stability.
  • The company is involved in certain legal proceedings, and any adverse judgments in these cases could harm its business prospects and reputation, potentially leading to financial losses.
  • As of March 31, 2024, Danish Power's total indebtedness stood at Rs 10.11 crore. Any inability to repay or service these loans could negatively affect the company’s financial standing and limit its ability to invest in growth or manage operational costs effectively.

Financials

YearsTotal AssetsShare CapitalProfit After TaxConsolidated Net ProfitAdjusted EPS
202415,975.05160.933,807.273,807.2726.2866
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