Divine Power Energy IPO

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25th – 27th Jun 2024
02 Jul 2024
₹36 – ₹40
3000 shares (₹120000)
23cr

Schedule

Issue open date 25 Jun 2024
Issue close date 27 Jun 2024
UPI mandate deadline 27 Jun 2024 (5 PM)
Allotment finalization 28 Jun 2024
Refund initiation 01 Jul 2024
Share credit 01 Jul 2024
Listing date 02 Jul 2024
Mandate end date 12 Jul 2024
Lock-in end date for anchor investors (50%) 28 Jul 2024
Lock-in end date for anchor investors (remaining) 26 Sep 2024

About

Divine Power Energy Limited’s IPO is launching on June 25, 2024, with subscriptions closing on June 27, 2024. Originally incorporated as ‘PDRV Enterprises Private Limited’ on August 24, 2001, the company underwent name changes to become ‘Divine Power Energy Limited’ after converting from a private to a public limited company in 2023. They specialize in manufacturing and supplying various types of winding wires and strips essential for transformers, critical components in power distribution. Their products include innovations like fiberglass-covered wires, and they cater to national markets and support infrastructure upgrades aimed at reducing power losses and enhancing operational efficiency.

Funds Raised in the IPO Amount
Overall ₹22.76 crores
Fresh Issue ₹22.76 crores
Offer for sale

Financial Snapshot

Financial Year Ended March 2022 March 2023 March 2024
Total Assets 62.76 72.53 88.89
Revenue 122.90 150.84 222.72
Profit After Tax 0.80 2.84 6.40
EPS 0.66 2.31 4.06

*All figures except EPS are in ₹ Crores

Risk factors

  • Vulnerability To Raw Material Price Fluctuations: Production costs are highly sensitive to changes in copper rod, aluminium rod, paper, cotton, and fibreglass prices. They procure these materials primarily from the spot market, lacking long-term supply agreements, thus exposing them to significant financial risks from unpredictable price variations.
  • Impact of Copper and Aluminium Prices on Company Profit Margins: The company’s primary raw materials, Copper and Aluminium rods, crucial for manufacturing winding wires and strips, are highly influenced by their cyclical pricing nature tied to global demand and economic factors like geopolitics. This cyclicality significantly impacts our raw material costs, thereby affecting our profit margins.
  • Dependency on Third-Party Transportation Providers: The company manufactures copper and aluminium wires in Sahibabad, Uttar Pradesh, relying on third-party transportation for raw materials and finished goods across India. Potential transportation strikes or cost increases could significantly impact operations.

Note:

  • The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
  • The allotment status will be available by July 01, 2024, on the Registrar’s website and the NSE website.