Danish Power Limited IPO: Issue dates, price, and lot size

Founded in July 1985, Danish Power Limited is a manufacturer of transformers for various industries, including renewable energy projects such as solar power plants and wind farms. The company's product portfolio includes inverter duty transformers, distribution transformers, power transformers, control relay panels, and substation automation services.

The Danish Power Limited IPO presents an opportunity for investors interested in renewable energy and power transmission. In this blog, we’ll explore the IPO details, company background, financials, strengths, challenges, and  IPO investment prospects to help you make an informed decision.

Danish Power Limited IPO synopsis

About Danish Power Limited

Danish Power Limited was established in July 1985 and has since grown to become a key player in the transformer manufacturing sector. The company’s offerings cater to the renewable energy sector, as well as power generation, transmission, and utilities. Its product portfolio includes:

• Inverter duty transformers: Multi-winding transformers 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 and relay panels: Including SCADA, Bus Bar Protection Panels, LT Panels, and APFC Panels.

The company operates two manufacturing plants in Jaipur, certified for quality, environmental, and safety management. Its clientele includes renowned firms like Tata Power Solar System Ltd, Waaree Renewable Technologies Limited, ABB India Limited, and Torrent Power Limited.

Danish Power Limited financials

Danish Power Limited IPO highlights: Strengths

1. Well-equipped manufacturing facilities: The company's two manufacturing facilities in Jaipur are fitted with advanced machinery and equipment, ensuring efficient production processes. 
2. Long-term relationships with clients: Danish Power Limited has developed strong, long-term relationships with its clients by delivering high-quality products and timely services, fostering trust and business continuity.
3. Diverse product range: The company's portfolio caters to various industries, including renewable energy (solar and wind), power generation, power transmission, electricity substations, and power utilities. This diversification helps to mitigate industry-specific risks.
4. Experienced management team: The management team brings years of industry experience, which drives the company’s strategic growth and operational efficiency.

Danish Power Limited IPO highlights: Challenges

1. Market competition: Danish Power Limited operates in a competitive market with several well-established players, which could impact pricing power and profit margins.
2. Dependency on renewable energy sector growth: A significant portion of the company’s business is linked to the renewable energy sector. Any slowdown in the adoption of renewable energy or changes in government policies could impact demand for its products.
3. Price fluctuations in raw materials: The transformer manufacturing industry is susceptible to fluctuations in the prices of raw materials, such as copper and steel, which could affect the company’s profit margins.

Should you invest in the Danish Power Limited IPO?

Investing in the Danish Power Limited SME IPO could appeal to those interested in the renewable energy sector, given the company’s long-standing presence in transformer manufacturing. With well-equipped facilities, a diverse product range, and a strong client base, the company is well-positioned for growth. 

However, potential investors should consider the risks associated with market competition, dependency on the renewable sector, and raw material price volatility. Assessing your risk appetite and investment goals is crucial before deciding.

Conclusion

The Danish Power Limited IPO presents an investment opportunity in a company that has a solid foothold in the transformer manufacturing industry. With strengths such as well-equipped facilities and a diverse product portfolio, the company is set for growth. However, investors should weigh the challenges before making a decision. As always, it is recommended to seek financial advice or conduct thorough research to determine whether this upcoming IPO aligns with your investment strategy.

FAQs

1. When will the Danish Power Limited IPO open?

The IPO open date is October 22, 2024.

2. What is the lot size for the Danish Power Limited IPO?

The IPO lot size is 300 shares.

3. What does Danish Power Limited manufacture?

The company manufactures various types of transformers, including inverter duty transformers, power transformers, and distribution transformers, as well as control relay panels and substation automation services.

4. Who are the key clients of Danish Power Limited?

Some of the company’s notable clients include Tata Power Solar System Ltd, ABB India Limited, Waaree Renewable Technologies Limited, and Torrent Power Limited.