Danish Power IPO: Biggest SME issue opens for public subscription to raise Rs 198 crore

The company will spend Rs 37 crore out of the net issue proceeds for building of factory shed and installation of additional plant and machinery.

Danish Power initial public offer (IPO) opened for public subscription on October 22 to raise about Rs 198 crore in the primary market. The three-day window for public subscription of the Rajasthan-based company begins today and concludes on October 24.

The SME (small and medium enterprise) issue of the Rajasthan-based company has fixed a price band for the maiden share at Rs 360-380 per share with a lot size of 300 shares.

The minimum investment per lot is Rs 1,08,000, while the maximum investment size is Rs 1,14,000.

The Rs 197.90 crore issue size is the biggest in the SME segment. Before Danish Power, KP Green Engineering was the largest issue with Rs 189.5-crore size, which opened in March this year, followed by Sahasra Electronics Solutions in September with Rs 186.2-crore IPO.

In fact, 2024 has turned out to the first year that saw nine SME IPOs worth more than Rs 100 crore each, compared to only one in 2023, which was Spectrum Talent Management's Rs 105-crore IPO.

Established in 1985 with two manufacturing facilities in Jaipur, the pink city, the Talwar family-owned company, competing with listed entities like Indo Tech Transformers, Shilchar Technologies, and Voltamp Transformers, provides transformers and panels to several customers such as Tata Power Solar System, Waaree Renewable Technologies, Jakson Green, ABB India, and Torrent Power.

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

The company will spend Rs 37 crore out of the net issue proceeds for building of factory shed and installation of additional plant and machinery, and Rs 85 crore for its working capital requirements. Further, Rs 20 crore will be utilised towards debt repayment, and the remaining funds for general corporate purpose.

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