Transformer manufacturing company Danish Power is going to launch the biggest IPO ever in the Small and Medium Enterprises (SME) segment. Its issue size will be Rs 198 crore and it will open for subscription on 22 October 2024. Interested investors can bid for this IPO till 24 October 2024. The price band of this IPO has been fixed at Rs 360-380 per share. The company will issue 52.08 lakh new shares under the IPO. Danish Power has appointed Hem Securities as the merchant banker of the IPO, while Link Intime India is the registrar of this offer.

Will the company set up a new factory?
The company will spend Rs 37 crore from the proceeds from the IPO for manufacturing the factory shed and installation of additional plant and machinery. While Rs 85 crore will be used for working capital requirements. Apart from this, Rs 20 crore will be used for debt repayment and the remaining funds will be for general corporate purpose. After the issue, the debt burden seems to be reducing significantly as the total debt on its books till June 2024 was Rs 21.25 crore. What does Danish Power do? With two manufacturing facilities in Jaipur, the capital of Rajasthan, the company provides transformers and panels to several clients such as Tata Power Solar Systems, Wari Renewable Technologies, Jackson Green, ABB India and Torrent Power. Established in 1985, the company is owned by the Talwar family and competes with listed entities such as Indo Tech Transformers, Schilcher Technologies and Voltamp Transformers in this space. Company's Finance Danish Power has reported a net profit of Rs 38.07 crore on a revenue of Rs 332.5 crore for FY 2024, while the profit for the first quarter of FY 2024 was Rs 9.98 crore with a revenue of Rs 71.93 crore. This year the SME segment saw a boom Before Danish Power, KP Green Engineering was the largest issue in the SME segment with a size of Rs 189.5 crore. It opened in March of the current year. After this, in September, Sahasra Electronics Solutions launched an IPO of Rs 186.2 crore in the market. 2024 has been the first year in which 9 SME IPOs worth more than Rs 100 crore came. Earlier in 2023, only the IPO of Spectrum Talent Management was able to cross this figure, whose size was Rs 105 crore.