Divine Power Energy IPO (Divine Power IPO) Review

 
Divine Power IPO Review

IPO Open Date: June 25, 2024

IPO Close Date: June 27, 2024

IPO Price: ₹36 to ₹40 per share

Lot Size: 3000 Shares

Listing: July 01, 2024

Divine Power is scheduled to hit the market on June 25, 2024 and close on June 27, 2024. Divine Power plans to raise around ₹22.76 Cr through an IPO with a sale of up to 5,690,000 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.

Incorporated in 2001, Divine Power Energy Limited specializes in manufacturing a range of bare and winding copper/aluminum wires and strips. These products are produced through annealing, insulation, and covering processes with materials like paper, cotton, and fiberglass. The company distributes its fiberglass-covered wires and strips to markets in Punjab, Bengaluru, Ahmedabad, and is eyeing opportunities in Maharashtra. Its clientele mainly consists of power distribution companies and transformer manufacturers, including noteworthy names such as TATA Power Limited and various Vidyut Vitran Nigam Limited companies.

The company's manufacturing facility, located in Sahibabad, Ghaziabad, spans across 1,777 square meters and has the capacity to handle 300 metric tonnes of aluminum and 400 metric tonnes of copper monthly. DPEL holds an ISO 9001:2015 certification from International Management Certification, which is accredited by the Global Accreditation Assessment Forum Series. With a workforce of 40 employees across different departments as of June 2024, Divine Power Energy Limited continues to make strides in the electrical industry with its quality products and services.

Divine Power Energy



Divine Power IPO Details

Divine Power IPO opens on June 25, 2024, and closes on June 27, 2024. The Listing date for Divine Power IPO is on July 02, 2024. The price band for IPO is ₹36 to ₹40 per share and lot size of 3000 Shares.

IPO DateJune 25, 2024 to June 27, 2024
Listing DateJuly 02, 2024
Price₹36 to ₹40 per share
Lot Size3000 Shares
Issue Size₹22.76 Cr
Face Value₹10 per share

Divine Power IPO Tentative Timetable

Divine Power opening date is June 25, 2024 and close date is June 27, 2024. The IPO allotment date is June 28, 2024. The refund initiation of IPO is on July 01, 2024. The credit of shares in demat account is on July 01, 2024. The listing date is on July 02, 2024.

EventDate
IPO OpeningJune 25, 2024
IPO ClosingJune 27, 2024
IPO Allotment DateJune 28, 2024
Refund InitiationJuly 01, 2024
Shares Credit to DematJuly 01, 2024
Lisiting DateJuly 02, 2024

Divine Power IPO Lot Size

Lot Size of this IPO is 3000 shares. A retail-individual investor can apply for up to 1 lots (3000 shares or ₹120,000).

CategoryLotsSharesAmount
Retail(Minimum)13000₹120,000
Retail(Maximum)13000₹120,000
S-HNI (Minimum)26000₹240,000

Divine Power IPO Promoter Holding

Pre Issue Share Holding100.00%
Post Issue Share Holding

Divine Power IPO Review

DPEL has shown significant growth in both revenue and profit, particularly in the pre-IPO year. For FY22, the company reported a total income of Rs. 122.90 crore and a net profit of Rs. 0.81 crore. In FY23, revenue increased to Rs. 150.84 crore with a net profit of Rs. 2.85 crore. For FY24, revenue further grew to Rs. 222.72 crore with a net profit of Rs. 6.41 crore. This sudden boost in profitability raises questions about the sustainability of this trend, especially in a highly competitive and fragmented market. For the last three fiscals, DPEL reported an average EPS of Rs. 2.91 and an average RoNW of 18.56%. The issue is priced at a P/BV of 2.47 based on its NAV of Rs. 16.20 as of March 31, 2024. If we attribute annualized FY24 earnings to its post-IPO fully diluted paid-up capital, the asking price is at a P/E of 13.42, suggesting the issue is fully priced.

DPEL’s IPO aims to raise Rs. 22.76 crore by issuing approximately 5,691,000 equity shares at a price band of Rs. 36 – Rs. 40 per share. The proceeds will be used primarily for working capital (Rs. 18.00 crore) and general corporate purposes. Post-IPO, the company’s paid-up equity capital will increase from Rs. 15.78 crore to Rs. 21.47 crore, targeting a market capitalization of Rs. 85.88 crore at the upper price band. The issue constitutes 26.51% of the post-IPO paid-up capital. The IPO is managed by Khambatta Securities Ltd., with Bigshare Services Pvt. Ltd. as the registrar. Nikunj Stock Brokers Ltd. is the market maker for the company. Khambatta Securities has a track record of successful IPOs with listing premiums, enhancing the attractiveness of this offering.

Divine Power Energy Ltd. operates in a highly competitive and fragmented segment of the market. While the company has shown impressive growth in its top line, the sudden boost in profitability in the pre-IPO year raises concerns about the sustainability of such performance. The company’s debt-equity ratio of 2.26 as of March 31, 2024, is also a significant concern. Given the aggressive pricing and the high-risk nature of the business, well-informed investors should approach this IPO with caution. The company's robust client base, reliable supplier network, and comprehensive product range are positives. However, the competitive landscape and questions about the sustainability of recent financial performance suggest a conservative investment approach. For those with a long-term investment horizon, a moderate allocation in DPEL’s IPO could be considered, banking on the company's ability to maintain its growth trajectory and navigate the competitive market effectively.

Divine Power IPO Subscription Status (Bidding Details)

Table not found

Divine Power IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

Divine Power IPO FAQs

What is Divine Power IPO?

Divine Power is issuing 5,690,000 equity shares with a face value of ₹10 each, totaling up to ₹22.76 Cr. The shares are being offered at a price of ₹36 to ₹40 each, with a minimum order quantity of 3000 shares.

Bigshare Services Pvt Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When Divine Power IPO will open?

Divine Power will open on June 25, 2024 for QIB, NII, and Retail Investors.

When Divine Power IPO will end?

Divine Power will end on June 27, 2024.

What is Divine Power IPO Size?

Divine Power IPO size is 22.76 Cr.

What is Divine Power IPO Price Band?

Divine Power price band is ₹36 to ₹40 per share.

What is the Divine Power IPO Allotment Date?

Divine Power allotment date is June 28, 2024.

What is the Divine Power IPO Listing Date?

Divine Power listing date is July 02, 2024. The IPO is to be listed on BSE and NSE.

How to Divine Power IPO through Zerodha?

To apply for the IPO “Divine Power” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply Divine Power IPO through Upstox?

To apply for the IPO “Divine Power” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check Divine Power IPO Allotment Status?

For Divine Power IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is Divine Power IPO GMP?

You can check out here: Divine Power IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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