Danish Power Limited recently concluded its highly anticipated IPO, generating considerable interest in the SME sector. This blog post provides all you need to know about the allotment status, timeline, grey market premium (GMP), company background, and steps to check your allotment status online.
Danish Power IPO Overview
Danish Power Limited, a company specializing in transformers and substation automation services, launched its IPO to fund business expansion and meet general corporate expenses. Here are the IPO’s key details:
- IPO Open Date: Tuesday, October 22
- IPO Close Date: Thursday, October 24
- Basis of Allotment: Friday, October 25
- Initiation of Refunds: Monday, October 28
- Credit of Shares to Demat Accounts: Monday, October 28
- Listing Date: Tuesday, October 29
This IPO saw a massive response from investors, particularly for a SME IPO, and became the largest IPO in the SME segment, valued at Rs 197.90 crore. It was oversubscribed 126.65 times on its final day, demonstrating strong demand across different investor categories:
- Non-Institutional Investors (NIIs): Subscribed 275.92 times
- Qualified Institutional Buyers (QIBs): Subscribed 104.79 times
- Retail Individual Investors (RIIs): Subscribed 79.88 times
How to Check Danish Power IPO Allotment Status on Link Intime India
Investors can check their allotment status via the official website of Link Intime India Pvt. Ltd., the registrar for the issue. Follow these steps:
- Visit the Link Intime India website.
- Select ‘Danish Power Limited’ from the dropdown list of companies (available after share allocation).
- Choose one of the following identification options: PAN, Application Number, DP/Client ID, or Account Number/IFSC.
- Enter the required details based on your selected option.
- Click ‘Submit’ to view your allotment status.
By following these steps, investors can quickly verify their allotment status and see if they’ve been allocated shares in Danish Power Ltd.
Danish Power IPO Grey Market Premium (GMP) Today
The IPO has generated substantial demand in the grey market, where the GMP was Rs 300 as of the morning of October 25. This indicates a potential listing price of around Rs 680, representing a premium of 78.95% over the issue price. It’s essential to remember that GMP is not an official price; it’s purely speculative and subject to market fluctuations.
Danish Power IPO Pricing and Investment Requirements
The IPO comprised a fresh issue of 52.08 lakh shares valued at Rs 197.90 crore, with a price band of Rs 360-380 per share. Retail investors were required to apply for a minimum lot size of 300 shares, amounting to Rs 1.14 lakh per application. This investment requirement reflects the company’s focus on institutional and larger retail investors.
About Danish Power Limited
Danish Power Limited, established in July 1985, has a strong reputation in the field of transformer manufacturing and substation automation. Their diverse product range includes:
- Inverter Duty Transformers for renewable energy projects (solar and wind)
- Power and Distribution Transformers
- Control Relay Panels
- SCADA (Supervisory Control and Data Acquisition) Systems
The company’s two factories in Jaipur adhere to high standards in quality, environment, and safety. Key clients of Danish Power include Tata Power Solar, Waaree, and ABB India, showcasing the trust large firms place in their products and services. Serving industries like renewable energy, power transmission, and utilities, Danish Power is well-positioned in growing markets and benefits from strong operational capabilities and experienced management.
As of March 31, 2024, the company had a workforce of 343 employees and additional contract staff, underscoring their commitment to operational excellence.
Final Thoughts
The Danish Power IPO has garnered significant interest, marking a milestone in the SME IPO space. Its strong product lineup, reputed client base, and industry presence make it a compelling investment for institutional and retail investors alike. However, as with any IPO, it’s essential for investors to understand the associated risks. Consulting a financial advisor and thoroughly reviewing the red herring prospectus is advised.
Disclaimer: IPO investments are subject to market risks. This information is provided for educational purposes only, and investors should seek professional advice before investing.