Danish Power shares made a noteworthy entrance on the NSE SME, listing at ₹570, which marks a 50% premium over the issue price. This positive reception reflects strong expectations in the share market investment community, supported by significant interest during the IPO subscription and favourable grey market indicators.
Despite the strong debut, Danish Power's shares experienced a decline of 5% shortly after listing, reaching the lower end of the price band. The IPO, which closed on October 24, garnered a remarkable subscription rate, being oversubscribed by 126.65 times overall. Notably, the retail segment saw a subscription rate of 79.88 times, while qualified institutional buyers (QIBs) subscribed at a rate of 104.79 times. The non-institutional investor (NII) category led the way with a staggering 275.92 times subscription.
Data from Investorgain.com indicated that the grey market premium (GMP) for the Danish Power IPO stood at ₹246. This suggests that investors could potentially buy shares at ₹246 more than the issue price in the grey market, projecting a listing price of approximately ₹626 per share. This anticipated figure represents a substantial 64.74% premium over the upper limit of the issue price, further fuelling investor interest in this share market investment opportunity.
The Danish Power IPO was a ₹197.90 crore book-built offering, with a total of 52.08 lakh shares being offered and issued fresh. Bidding for the IPO commenced on October 22, 2024, and concluded on October 24, 2024, capturing considerable attention from a wide array of investors.
Founded in July 1985, Danish Power is engaged in manufacturing a variety of transformers, including inverter duty transformers specifically designed for wind farms and solar energy projects. The company also produces control relay panels, substation automation services, and various types of power and distribution transformers, both dry and oil-based.
The product portfolio can be broadly categorised into several key areas:
The Danish Power IPO is managed by Hem Securities Limited, serving as the book-running lead manager. The registrar for the issue is Link Intime India Private Ltd., while Hem Finlease acts as the market maker for the Danish Power shares.
As investors look to make informed decisions about their share market investments, the debut of Danish Power at ₹570 presents an interesting opportunity. The company's strong market response reflects not only its established presence in the renewable energy sector but also the robust demand for shares in today's market landscape. The initial listing and subscription figures suggest that Danish Power is well-positioned for future growth, making it a compelling option for those interested in share market investments.
The combination of strong IPO demand and a promising product lineup positions Danish Power as a noteworthy player in the market, appealing to investors keen on making strategic share market investments.
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