Divine Power Energy Files Draft Red Herring Prospectus for ₹22.5 Crore IPO

Insulated wires and strips manufacturer, Divine Power Energy Limited (DPEL), headquartered in New Delhi, has officially filed its Draft Red Herring Prospectus (DRHP) with NSE Emerge, marking a significant milestone towards its Initial Public Offering (IPO). The IPO comprises a fresh issue of equity shares with a face value of ₹10/- each, amounting to a total of ₹22.5 crore.

Khambatta Securities Limited has been appointed as the Book Running Lead Manager for the issue, while Bigshare Services Private Limited will serve as the Registrar.

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DPEL, incorporated in 2001 and promoted by the experienced entrepreneur duo Rajesh Giri and Vikas Talwar, specializes in manufacturing copper and aluminium wires/strips insulated with paper, crepe paper, and fiberglass. The company supplies these products to discoms and transformer manufacturers and also engages in trading super enamelled wires and strips. The products find common usage in the assembly and repair of transformers, and DPEL has a substantial presence in North India, covering regions such as Uttar Pradesh, Delhi, Uttarakhand, Haryana, Punjab, and Bihar.

The company operates a state-of-the-art manufacturing plant strategically located in Ghaziabad, boasting an installed capacity of 300 metric tonnes of aluminium and 400 metric tonnes of copper per month. The plant includes sufficient storage facilities for raw materials and finished products, ensuring operational stability. DPEL plans to utilize the IPO proceeds to enhance production of existing products and expand its product portfolio to meet the growing demand in both existing and new markets.

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Out of the net proceeds, ₹17 crore will be allocated for working capital requirements, with ₹10 crore earmarked for the current fiscal year and ₹7 crore for FY2025. The remaining capital will be utilized for general corporate purposes and issue-related expenses.

In the first half of the current fiscal year ending September 30, 2023, DPEL reported a total revenue of ₹102.95 crore and a profit after tax (PAT) of ₹2.19 crore. The company’s financial performance in FY23 demonstrated a revenue of ₹150.84 crore, compared to ₹122.90 crore in FY22, with a corresponding increase in profit after tax from ₹90.16 lakh in FY22 to ₹2.85 crore in FY2022-23.

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With a robust manufacturing setup, experienced promoters, and a focus on meeting market demand, Divine Power Energy Limited appears poised for growth as it steps into the IPO arena. Investors and stakeholders are keenly awaiting further developments as the company progresses through the IPO process.

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