Divine Power Energy Ltd has commenced its initial public offering (IPO) subscription from June 25 to June 27. The IPO offers shares in a lot size of 3,000 shares, priced between ₹36 to ₹40 per equity share with a face value of ₹10.
Divine Power Energy Ltd manufactures winding copper/aluminum wires and strips used in transformers and power distribution. These products are crucial for regulating voltage and reducing power loss during electricity transmission.
As per the red herring prospectus, listed peers include Shera Energy Ltd, Bhagyanagar India Ltd, Rajnandini Metal Ltd, Ram Ratna Wires Ltd, and Precision Wires India Ltd.
The company’s profit after tax grew by 124.82% between March 31, 2024, and March 31, 2023, while revenue increased by 47.65%.
As of day 1, the Divine Power IPO subscription status is 2.45 times, with the retail portion oversubscribed by 3.95 times and the NII portion by 2.26 times. The company has received bids for 1,03,95,000 shares against 42,34,222 shares on offer as of 12:15 IST.
The IPO, valued at ₹22.76 crore, comprises a fresh issuance of 5,690,000 equity shares at a face value of ₹10, with no offer-for-sale component. Proceeds will be utilized for general corporate purposes and working capital needs.
Khambatta Securities Limited is the book running lead manager, and Bigshare Services Pvt Ltd is the registrar for the IPO. Nikunj Stock Brokers serves as the market maker.
Today’s grey market premium (GMP) for Divine Power IPO stands at +51, indicating a premium of ₹51 over the issue price. This suggests an expected listing price of ₹91 per share, 127.5% higher than the IPO price of ₹40.
Disclaimer: Investors are advised to consult with financial experts before making investment decisions.
