About the Company:
Danish Power Ltd is engaged in the business of manufacturing of different types of transformers including inverter duty transformers used in renewable power projects like solar power plant or wind
farms, oil and dry type power and distribution transformers, control relay panel along with substation automation services.
Company’s transformers and panels are used across various sectors and industries to facilitate the efficient transmission and distribution of electrical power such as renewable power EPC projects like solar power plant, wind power farms, other power generation plants, power transmission, electricity sub-stations, power utilities etc.
Over the years, Company has established a diversified client base across different customers in the power industry like renewable power EPC projects like solar power plant, wind power farms, other power generation plants, power transmission, electricity sub-stations, power utilities etc.
Company’s customers include companies like Tata Power Solar System Ltd, Waaree Renewable Technologies Ltd, Jakson Green Private Ltd, ABB India Limited & Torrent Power Ltd.
Company’s current product portfolio may be categorized as follows:
Inverter Duty Transformers (multi-winding) upto 20 MVA 33 kV Class for Solar Plants, Transformers for Wind Turbine Generator
Distribution Transformers upto 5 MVA 33 kV Class.
Power Transformers upto 63 MVA 132 kV Class.
Panels includes Control Relay Panels upto 400 kV Class, Substation Automation (SCADA), Bus Bar Protection Panels, LT Panels, APFC Panels.
Company’s Product-wise revenue: (in Lakhs)
Company’s Order Book:
- As on September 30, 2024, Company has Orders in hand include transformers and control panels aggregating to Rs. 371.25 crores.
Company’s Manufacturing Facilities:
Company was founded in the year 1985 and currently operate from its two manufacturing facilities located at F-679, 680, G-694, Sitapura Industrial Area, Jaipur 302022 & Plot no 02-07 & 08, DTA Phase II, PO Mahinda World City, Jaipur.
Company started operations at our second plant located at Plot no 02-07 & 08, DTA Phase II, PO Mahinda World City, Jaipur during the Year 2022. These plants have a combined capacity of around 4681 MVA for transformer manufacturing and a capacity of around 576 units for control relay panels manufacturing.
Company’s Revenue from domestic and export sales: (in Lakhs)
Competition in the Business:
The power and distribution transformers manufacturing industry is characterized by intense competition, with both global giants and local players vying for prominence in the market. The competitive landscape is intricate, with companies differing in terms of geographical presence, product focus, and market strategies.
Company’s competitors include names like Indo Tech Transformers Ltd, Transformers & Rectifiers Ltd, Volt Amp Transformers Ltd and Shilchar Technologies Ltd.
Management Team:
- Mr. Dinesh Talwar (Designation: Chairman & Whole Time Director)
- Mr. Shivam Talwar (Designation: Managing Director)
Objectives of the Issue:
Fresh Issue: (Rs.197.90 cr)
- Funding capital expenditure towards expansion of the manufacturing facility of the Company by building of factory shed
and installation of additional plant and machinery therein - To meet working capital requirements.
- Repayment of certain borrowing availed by our Company, in part or full.
- General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding capital expenditure towards expansion of the manufacturing facility of the Company by building of factory shed and installation of additional plant and machinery therein | 36.99 cr |
| To meet working capital requirements | 85 cr |
| Repayment of certain borrowing availed by our Company, in part or full | 20 cr |
Positives for the Company:
Established Manufacturing facility.
- Company’s manufacturing units are equipped with the required machinery, equipment and infrastructure and capable to carry out the requisite manufacturing activities and are in compliance with the manufacturing standards. Our years of experience in the manufacturing transformers enabled us to meet our customers customized and stringent requirements.
- Company has capabilities across the different levels of our manufacturing process including product designing, testing and effectiveness, for meeting the requirement of our customers.
- Company’s manufacturing setup coupled with our experience in the industry also gives us control over the product quality and efficiency. Company’s experience and established manufacturing facility have enabled us to deliver our products and provide timely solution to our customers in accordance with their requirements and specifications, in a cost-effective manner without compromising on quality.
Existing relationship with the clients.
- Company is focussed on building sustained and long-term relationship with our clients and constantly try to cater customer needs with quality and products with latest technologies. Since company is mainly engaged in B2B business model, our existing clients provide us continuous business due to delivery of quality product and timely delivery.
- Some of our major customer during the last 3 years includes clients such as Tata Power Solar Systems Ltd, Waaree Renewable Technologies Ltd, Jakson Green Private Ltd, ABB India Ltd & Torrent Power Ltd.
Diversified Product Base.
- Company is engaged in the business of manufacturing of different types of transformers including inverter duty transformers which are used in renewable power projects like solar power plant or wind farms, oil and dry type power and distribution transformers, control relay panel along with substation automation services.
- These transformers and panels are used across various sectors such as renewable power EPC projects like solar power plant, wind power farms, other conventional power generation plants, power transmission, electricity sub-stations, power utilities etc.
Experienced Promotors & Management team.
- Company has an experienced management team with established processes led by our promoters Mr. Dinesh Talwar Whole Time Director and Mr. Shivam Talwar, Managing Director, who have rich experience in the transformer & panel manufacturing. The knowledge and experience of our promoters along with the management team have contributed in the consistent growth of our Company.
- Company’s promoter, Dinesh Talwar has an industry experience of around 39 years. His knowledge of transformer industry have helped us in establishing and expanding our business.
Company Plans to Expand the Manufacturing facility.
- Company is taking steps towards expansion of our manufacturing facility for achieving better operational efficiency. In order to expand our business and achieve operational efficiency, we have during the fiscal year 2024-25, acquired a wholly owned subsidiary with the object of expansion of our manufacturing facility.
- Further, Company also owns a vacant land at the existing premises of the company located at Mahindra World city, Jaipur, which will be used for the construction of the additional manufacturing facility and installation of plant and machinery for expansion purpose.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 | Upto 30th June 24 |
|---|---|---|---|---|
| Revenue | 148.63 | 188.70 | 334.63 | 72.73 |
| Net Profit | 5.24 | 8.57 | 38.07 | 9.98 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Danish Power Limited | 10 | 26.29 | 14.45 | 46.36% | 56.71 |
| Indo Tech Transformers Ltd | 10 | 44.12 | 46.61 | 21.58% | 141.93 |
| Shilchar Technologies Ltd | 10 | 120.48 | 53.04 | 43.84 | 274.81 |
| Voltamp Transformers Ltd | 10 | 303.80 | 44.76 | 22.71% | 1337.94 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 22nd October 2024 |
| Issue Closes on | 24th October 2024 |
| Issue Price | Rs.360-380 |
| Face Value | Rs.10 |
| Minimum Lot | 300 Shares |
| Minimum Investment | Rs.1,14,000 |
| Issue Constitutes | 26.44 % |
| Issue Size | Rs.197.90 cr |
| Market Cap | Rs.748.28 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 52,08,000 (Rs.197.90 cr) |
| Equity Shares Prior to the Issue | 1,44,83,610 |
| Equity Shares after the Issue | 1,96,91,610 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 26.29 | 14.45 | 46.36% | 56.71 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Danish Power Ltd specializes in the manufacturing of various types of transformers, including inverter duty transformers that are essential for renewable energy projects such as solar power plants and wind farms. The company also produces oil and dry-type power and distribution transformers, control relay panels, and offers substation automation services. These products are critical for the efficient transmission and distribution of electrical power across industries like renewable power EPC projects, power generation plants, electricity sub-stations, and utilities.
Danish Power Ltd has built a strong and diversified client base over the years, catering to significant players in the power industry. Some of their notable clients include Tata Power Solar System Ltd, Waaree Renewable Technologies Ltd, Jakson Green Private Ltd, ABB India Limited, and Torrent Power Ltd. As of September 30, 2024, the company holds orders worth ₹371.25 crores for transformers and control panels. These orders are aimed at supporting a range of sectors, particularly in renewable energy, power transmission, and conventional power plants. With its robust order book and prominent clients, Danish Power Ltd presents a strong long-term investment opportunity in the growing energy infrastructure sector. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 25th October 2024 |
| Initiation of Refunds | on or Before 28th October 2024 |
| Credit of Equity Shares: | on or Before 28th October 2024 |
| Listing Date: | on or Before 29th October 2024 |
| Company Contact Info: |
|---|
| Danish Power Ltd DTA-02-07-08, DTA Phase-II, PO, Mahindra World City, Mahindra World City (Jaipur), Jaipur, Sanganer, Rajasthan, India, 302037 Tel No: +91- 9001829230 E-mail: cs@danish.co.in Website: www.danish.co.in |
| Registrar to the Issue: |
|---|
| Link Intime India Private Limited Address: C – 101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400083, Maharashtra, India Telephone: +91 810 811 4949 Email: danishpower.smeipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
