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Danish Power Ltd IPO
Status: Closed
Overview
IPO date
22 Oct 2024 to 24 Oct 2024
Face value
₹ 10 per share
Price
₹ 360 to ₹380 per share
Issue Size
5,208,000 shares
(aggregating up to ₹ 197.9 Cr)
(aggregating up to ₹ 197.9 Cr)
Allotment Date
25 Oct 2024
Listing at
NSE
Issue type
Book Building - SME
Sector
Capital Goods - Electrical Equipment
Objectives of Danish Power Ltd IPO
Initial public offer of 52,08,000 equity shares of face value of Rs. 10/- each (the "Equity Shares") of Danish Power Limited ("The Company" or "The Issuer") at an issue price of Rs. 380 per equity share (including share premium of Rs. 370 per equity share) for cash, aggregating up to Rs. 197.90 crores ("Public Issue") out of which 260,700 equity shares of face value of Rs. 10 each, at an issue price of Rs. 380 per equity share for cash, aggregating Rs. 9.91 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion") and upto 64,500 equity shares aggregating up to Rs. 2.45 crores for subscription by eligible employees (as defined hereinafter) (the "Employee Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 48,82,800 equity shares of face value of Rs. 10 each, at an issue price of Rs. 380 per equity share for cash, aggregating upto Rs. 185.55 crores is herein after referred to as the "Net Issue". The public issue and net issue will constitute 26.45% and 24.80% respectively of the post-issue paid-up equity share capital of the company.
*Subject to finalization of basis of allotment.
The face value of the equity shares is Rs. 10/- each. The issue price is 38 times with the face value of the equity shares.
Danish Power Ltd IPO Strategy
- Established Manufacturing facility.
- Existing relationship with the clients.
- Diversified Product Base.
- Experienced and Strong Promotors/Management team.
- Quality assurance.
About Danish Power Ltd
Danish Power Limited was originally formed as a Private Limited Company in the name and style of 'Danish Private Limited' dated July 10, 1985 was issued by the Registrar of Companies, Jaipur, Rajasthan. The Company was converted into a Public Limited Company with the name Danish Limited' pursuant to which, a fresh Certificate of Incorporation dated December 31, 1994 was issued by the Registrar of Companies, Jaipur, Rajasthan. Again, Company converted into a Private Limited Company with the name Danish Private Limited' dated December 03, 2002. Further, the Company name was changed from 'Danish Private Limited' to 'Danish Power Private Limited' vide a fresh Certificate of Incorporation dated July 08, 2024 issued by the Registrar of Companies, Central Processing Centre, Manesar. It then got converted into a Public Limited and the name of Company was changed from 'Danish Power Private Limited' to 'Danish Power Limited' vide a fresh Certificate of Incorporation dated July 22, 2024 issued by the Registrar of Companies, Central Processing Centre, Manesar.
Danish Power Ltd is an ISO 9001:2015, ISO 14001: 2015 and ISO 45001:2018 certified company, 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. These transformers and panels are used across various industries to facilitate 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. Their customers include companies like Tata Power Solar System Ltd, Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited & Torrent Power Limited.
The Company was founded in year 1985 and currently operate from its two manufacturing facilities located at Jaipur. It started operations at their second plant located at Plot no 02-07 & 08, DTA Phase II, PO Mahinda World City, Jaipur in 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. The manufacturing facilities of the Company is equipped with Foil winding machine, Oil storage tanks, Bus bar processing machine, Lath machine, CNC plasma machine, Transformer oil filter machine, Sheet rolling machine, Powder coating plant, Motorized sheet cutter machine, Power press, HV/LV coil winding machine, Vacuum drying oven with trolly, Pipe & bolt threading machine, Roller bending machine, Vacuum pump, Shearing machine insulated motorized.
The manufacturing facility located at Mahindra World City is certified for Quality Management System ISO 9001:2015, Environment Management System ISO- 14001: 2015 and Occupational Health and Safety Management System ISO 45001:2018 for design, development & manufacturing of power transformer up to 50MVA - 66KV class. Further, manufacturing facility located at Sitapura, Jaipur has also obtained Quality Management System ISO 9001:2015 certificate, Environment Management System ISO- 14001: 2015 and Occupational Health and Safety Management System ISO 45001:2018 for design, development & manufacturing of power and distribution transformer up to 30MVA - 33KV class, dry type transformers upto 5000 KVA 33KV class, Control and relay panel with substation automation upto 400 KV, Packaged Compact Substation (PCSS), Battery Chargers, LT Switchgear Panels, Feeder pillars and AC DC distribution boards.
Danish Power is the first in India to get BIS License for Ester (Bio degradable Fluid) Filled Distribution Transformers in 2022. It established a new Plant in Mahindra World City, Jaipur. It has installed 144 kW Roof Top Solar Plant Installed for captive consumption in 2023. The Company incorporated Wholly Owned Subsidiary in the name of Danish Transformer India Private Limited in 2023. In 2024, Company acquired 100% stake in Evernest Shelter Private Limited and it became a Wholly Owned Subsidiary of the Company.
The Company is planning a Public Offer upto 52,08,000 Equity Shares thru' Fresh Issue.
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T&C*
Strengths vs Risks of Danish Power Ltd
Know the pros & cons
Strengths
Established Manufacturing facility.- Existing relationship with the clients.
- Diversified Product Base.
- Experienced and Strong Promotors/Management team.
- Quality assurance.
Risks
- The company significantly depends upon few of the raw material suppliers for its manufacturing activities. Volatility in the supply and
pricing of the company raw materials may have an adverse effect on its business, financial condition and results of operations.
- Its may not be able to realize the amounts, partly or at all, reflected in the company Order Book which may materially and adversely affect its business, prospects, reputation, profitability, financial condition and results of operation.
- Under-utilization of its manufacturing capacities and an inability to effectively utilize the company existing manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- The company is subject to strict performance requirements, including, but not limited to, quality and delivery, by its customers, and any failures by the company to comply with these performance requirements may lead to the cancellation of existing and future orders, recalls or warranty and liability claims.
- Substantial portion of its revenues has been dependent upon few customers. The loss of any one or more of the company major customer would have a material adverse effect on its business, cash flows, results of operations and financial condition.
- Product designing is very important part for its equipment for which the company relies on its team. Any loss or error by these employees may have an adverse effect on its equipment and operations.
- Any failures to protect or enforce its rights to own or use trademarks and brand names and identities could have an adverse effect on the company's business and competitive position.
- The Company has encountered certain issues and discrepancies in its corporate records and regulatory compliance, which present potential risks.
- The restated financial statements have been provided by peer reviewed chartered accountant who is not statutory auditor of the Company.
- Demand for its transformers and relay panels business is dependent on growth in the power generation, transmission and distribution industry & infrastructure, that may contribute to fluctuations in its results of operations and financial condition.
- Certain of its corporate records relating to forms filed with the Registrar of Companies prior to the year 2002 in respect of Increase in Authorised Capital, Allotment of Equity Shares, Sub-division of shares, appointment of Statutory Auditor,
appointment & resignation of directors (if any), filing of financial statements etc. and other certain records are not traceable.
- Its business and the company financial condition would be materially and adversely affected if the company fails to obtain new purchase orders and contracts.
- The Company is party to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- Fluctuations in the exchange rate of foreign currencies could result in currency transactions losses.
- The company deploy advanced technologies in the manufacturing, designing and installation of transformers. Any incapability to adopt a new technology or change in the requirement of a particular technology by the government authorities may affect its position.
- The company depends on the large industries, EPC service providers, public utilities for selling of its products which may effects the company revenue from operation and profits.
- Its objects of the issue includes capital expenditure, which will take a period of time for set up and become operational.
- The Company operations requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
- The company has pending export obligation, in case the Company fail to meet export obligations its may be liable to payments of duty along with interest to the department.
- The factory of the Company operates from a premise taken by it on lease basis. If the company is unable to comply with the terms of the lease deed, the same may adversely affect the Company's ability to operate its current operations thus affecting its financial performance.
- One of its subsidiaries namely Evernest Shelter Private Limited, has taken on lease certain premises on which its business is dependent. Any termination of the lease agreement which adversely affect its operations and profitability.
- The company has not made any provisions for decline in the value of investments made by the Company. Any continuous decline in the value of investments made by the company may impact its financial results and condition.
- Certain documents in relation to educational qualification for one of its Director are not available and reliance has been made on declarations and affidavits furnished by such Director for details of their profiles included in this Red Herring Prospectus.
- Its major revenue is sourced from sale of the company products which is transformers. Its inability or failures to manage and attract more clients in this regards could adversely affect the company's business.
- Its profitability and business operations is significantly dependent on the company ability to successfully anticipate the industry and
client requirements. Any failures on its part to do so, may have an impact on the company operations, which could have an adverse effect on its revenue, reputation, financial conditions, results of operations and cash flows.
- The Company has not yet placed orders for the civil work, some of the machineries and equipment required by it for expansion of the company manufacturing facility. Any delay in placing the orders or supply of plant and machinery may result in time and cost overruns, and may affect its profitability.
- Activities involving its manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at its manufacturing facilities may adversely affect the company production schedules, costs, sales, and ability to meet customer demand.
- A shortage or non-availability of electricity or power may adversely affect its manufacturing operations and have an adverse effect on the company's business, results of operations and financial condition.
- If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage or accurately report
the company's financial risk.
- If the company is unable to retain and hire skilled employees, or to maintain good relations with its workforce, the company's business and financial condition may be adversely affected.
- The Company operates under several statutory and regulatory permits, licenses and approvals. Its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate the company's business may have an adverse effect on its business & operations.
- The company operates in competitive markets and may face competition from different players in the market which may have an adverse effect on its business, cash flows, financial condition and results of operations.
- The company has experienced significant growth in the past few years, and if the company is unable to sustain or manage its growth, the company's business, results of operations and financial condition may be adversely affected.
- The company has incurred indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations.
- Loans availed by the Company has been secured on personal guarantees of its Director. The company's business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its Directors.
- Ineffective execution of marketing programs and reduced marketing expenditure could have an adverse effect on its sales.
- Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- Its contingent liabilities and commitments as stated in the company Restated Financial Statements could affect its financial condition.
- The Company in the past has entered into Related Party Transactions and may continue to do so in future also, which may affect its competitive edge and better bargaining power if entered with non-related parties resulting into relatively more
favourable terms and conditions and better margins.
- Information relating to its production capacities and the historical capacity utilization of the company production facilities included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and thus its future production and capacity utilization may vary.
- The company depends on third-parties for its transportation needs. Any disruptions may adversely affect its operations, business and financial condition.
- The company is subject to restrictive covenants under its credit facilities that limit the company operational flexibility.
- The company is heavily dependent on its Promoters and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.
- Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.
- The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays or influence its profitability adversely.
- The company's ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- The average cost of acquisition of Equity Shares by its Promoters, is lower than the face value of Equity Share.
- Any future issuance of Equity Shares, or convertible securities or other equity linked securities by it and any sale of Equity
Shares by the company significant shareholders may dilute your shareholding and adversely affect the trading price of the Equity Shares.
- Its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- Certain data mentioned in this Red Herring Prospectus has not been independently verified.
- The company has issued Equity Shares during the last one year at a price that will be below the Issue Price.
- Significant differences exist between Indian GAAP and other accounting principles, such as Ind AS, IFRS and U.S. GAAP, which may be material to investors' assessments of its financial condition, result of operations and cash flows.
- Its may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.
- After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
Danish Power Ltd Peer Comparison
Understand the company’s industry standing
Danish Power Ltd
Indo Tech Transformers Ltd
Shilchar Technologies Ltd
Face Value
10
10
10
Standalone / Consolidated
Consolidated
Standalone
Standalone
Total Income Rs. Cr.
334.6384
509.92
409.7116
EPS-Basis
26.29
44.12
120.48
EPS-Diluted
26.29
44.12
120.48
NAV Per Share
---
---
---
P/E-Basic EPS
---
46.61
53.04
P/E-Diluted EPS
---
---
---
RONW(%)
56.71
21.58
43.84
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Danish Power Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 22 Oct 2024 & closes on 24 Oct 2024.
Danish Power Limited was originally formed as a Private Limited Company in the name and style of 'Danish Private Limited' dated July 10, 1985 was issued by the Registrar of Companies, Jaipur, Rajasthan. The Company was converted into a Public Limited Company with the name Danish Limited' pursuant to which, a fresh Certificate of Incorporation dated December 31, 1994 was issued by the Registrar of Companies, Jaipur, Rajasthan. Again, Company converted into a Private Limited Company with the name Danish Private Limited' dated December 03, 2002. Further, the Company name was changed from 'Danish Private Limited' to 'Danish Power Private Limited' vide a fresh Certificate of Incorporation dated July 08, 2024 issued by the Registrar of Companies, Central Processing Centre, Manesar. It then got converted into a Public Limited and the name of Company was changed from 'Danish Power Private Limited' to 'Danish Power Limited' vide a fresh Certificate of Incorporation dated July 22, 2024 issued by the Registrar of Companies, Central Processing Centre, Manesar.
Danish Power Ltd is an ISO 9001:2015, ISO 14001: 2015 and ISO 45001:2018 certified company, 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. These transformers and panels are used across various industries to facilitate 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. Their customers include companies like Tata Power Solar System Ltd, Waaree Renewable Technologies Limited, Jakson Green Private Limited, ABB India Limited & Torrent Power Limited.
The Company was founded in year 1985 and currently operate from its two manufacturing facilities located at Jaipur. It started operations at their second plant located at Plot no 02-07 & 08, DTA Phase II, PO Mahinda World City, Jaipur in 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. The manufacturing facilities of the Company is equipped with Foil winding machine, Oil storage tanks, Bus bar processing machine, Lath machine, CNC plasma machine, Transformer oil filter machine, Sheet rolling machine, Powder coating plant, Motorized sheet cutter machine, Power press, HV/LV coil winding machine, Vacuum drying oven with trolly, Pipe & bolt threading machine, Roller bending machine, Vacuum pump, Shearing machine insulated motorized.
The manufacturing facility located at Mahindra World City is certified for Quality Management System ISO 9001:2015, Environment Management System ISO- 14001: 2015 and Occupational Health and Safety Management System ISO 45001:2018 for design, development & manufacturing of power transformer up to 50MVA - 66KV class. Further, manufacturing facility located at Sitapura, Jaipur has also obtained Quality Management System ISO 9001:2015 certificate, Environment Management System ISO- 14001: 2015 and Occupational Health and Safety Management System ISO 45001:2018 for design, development & manufacturing of power and distribution transformer up to 30MVA - 33KV class, dry type transformers upto 5000 KVA 33KV class, Control and relay panel with substation automation upto 400 KV, Packaged Compact Substation (PCSS), Battery Chargers, LT Switchgear Panels, Feeder pillars and AC DC distribution boards.
Danish Power is the first in India to get BIS License for Ester (Bio degradable Fluid) Filled Distribution Transformers in 2022. It established a new Plant in Mahindra World City, Jaipur. It has installed 144 kW Roof Top Solar Plant Installed for captive consumption in 2023. The Company incorporated Wholly Owned Subsidiary in the name of Danish Transformer India Private Limited in 2023. In 2024, Company acquired 100% stake in Evernest Shelter Private Limited and it became a Wholly Owned Subsidiary of the Company.
The Company is planning a Public Offer upto 52,08,000 Equity Shares thru' Fresh Issue.
Danish Power Ltd IPO will close on 24 Oct 2024.
- Established Manufacturing facility.
- Existing relationship with the clients.
- Diversified Product Base.
- Experienced and Strong Promotors/Management team.
- Quality assurance.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Dinesh Talwar | 12791097 | 88.31 | 12791097 | 64.96 |
| 2 | Shivam Talwar | 1092357 | 7.54 | 1092357 | 5.55 |
| 3 | Puneet Sandhu Talwar | 99 | --- | 99 | --- |
| 4 | Dinesh Talwar HUF | 600030 | 4.14 | 600030 | 3.05 |
- The company significantly depends upon few of the raw material suppliers for its manufacturing activities. Volatility in the supply and pricing of the company raw materials may have an adverse effect on its business, financial condition and results of operations.
- Its may not be able to realize the amounts, partly or at all, reflected in the company Order Book which may materially and adversely affect its business, prospects, reputation, profitability, financial condition and results of operation.
- Under-utilization of its manufacturing capacities and an inability to effectively utilize the company existing manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- The company is subject to strict performance requirements, including, but not limited to, quality and delivery, by its customers, and any failures by the company to comply with these performance requirements may lead to the cancellation of existing and future orders, recalls or warranty and liability claims.
- Substantial portion of its revenues has been dependent upon few customers. The loss of any one or more of the company major customer would have a material adverse effect on its business, cash flows, results of operations and financial condition.
- Product designing is very important part for its equipment for which the company relies on its team. Any loss or error by these employees may have an adverse effect on its equipment and operations.
- Any failures to protect or enforce its rights to own or use trademarks and brand names and identities could have an adverse effect on the company's business and competitive position.
- The Company has encountered certain issues and discrepancies in its corporate records and regulatory compliance, which present potential risks.
- The restated financial statements have been provided by peer reviewed chartered accountant who is not statutory auditor of the Company.
- Demand for its transformers and relay panels business is dependent on growth in the power generation, transmission and distribution industry & infrastructure, that may contribute to fluctuations in its results of operations and financial condition.
- Certain of its corporate records relating to forms filed with the Registrar of Companies prior to the year 2002 in respect of Increase in Authorised Capital, Allotment of Equity Shares, Sub-division of shares, appointment of Statutory Auditor, appointment & resignation of directors (if any), filing of financial statements etc. and other certain records are not traceable.
- Its business and the company financial condition would be materially and adversely affected if the company fails to obtain new purchase orders and contracts.
- The Company is party to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- Fluctuations in the exchange rate of foreign currencies could result in currency transactions losses.
- The company deploy advanced technologies in the manufacturing, designing and installation of transformers. Any incapability to adopt a new technology or change in the requirement of a particular technology by the government authorities may affect its position.
- The company depends on the large industries, EPC service providers, public utilities for selling of its products which may effects the company revenue from operation and profits.
- Its objects of the issue includes capital expenditure, which will take a period of time for set up and become operational.
- The Company operations requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
- The company has pending export obligation, in case the Company fail to meet export obligations its may be liable to payments of duty along with interest to the department.
- The factory of the Company operates from a premise taken by it on lease basis. If the company is unable to comply with the terms of the lease deed, the same may adversely affect the Company's ability to operate its current operations thus affecting its financial performance.
- One of its subsidiaries namely Evernest Shelter Private Limited, has taken on lease certain premises on which its business is dependent. Any termination of the lease agreement which adversely affect its operations and profitability.
- The company has not made any provisions for decline in the value of investments made by the Company. Any continuous decline in the value of investments made by the company may impact its financial results and condition.
- Certain documents in relation to educational qualification for one of its Director are not available and reliance has been made on declarations and affidavits furnished by such Director for details of their profiles included in this Red Herring Prospectus.
- Its major revenue is sourced from sale of the company products which is transformers. Its inability or failures to manage and attract more clients in this regards could adversely affect the company's business.
- Its profitability and business operations is significantly dependent on the company ability to successfully anticipate the industry and client requirements. Any failures on its part to do so, may have an impact on the company operations, which could have an adverse effect on its revenue, reputation, financial conditions, results of operations and cash flows.
- The Company has not yet placed orders for the civil work, some of the machineries and equipment required by it for expansion of the company manufacturing facility. Any delay in placing the orders or supply of plant and machinery may result in time and cost overruns, and may affect its profitability.
- Activities involving its manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at its manufacturing facilities may adversely affect the company production schedules, costs, sales, and ability to meet customer demand.
- A shortage or non-availability of electricity or power may adversely affect its manufacturing operations and have an adverse effect on the company's business, results of operations and financial condition.
- If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage or accurately report the company's financial risk.
- If the company is unable to retain and hire skilled employees, or to maintain good relations with its workforce, the company's business and financial condition may be adversely affected.
- The Company operates under several statutory and regulatory permits, licenses and approvals. Its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate the company's business may have an adverse effect on its business & operations.
- The company operates in competitive markets and may face competition from different players in the market which may have an adverse effect on its business, cash flows, financial condition and results of operations.
- The company has experienced significant growth in the past few years, and if the company is unable to sustain or manage its growth, the company's business, results of operations and financial condition may be adversely affected.
- The company has incurred indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations.
- Loans availed by the Company has been secured on personal guarantees of its Director. The company's business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its Directors.
- Ineffective execution of marketing programs and reduced marketing expenditure could have an adverse effect on its sales.
- Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- Its contingent liabilities and commitments as stated in the company Restated Financial Statements could affect its financial condition.
- The Company in the past has entered into Related Party Transactions and may continue to do so in future also, which may affect its competitive edge and better bargaining power if entered with non-related parties resulting into relatively more favourable terms and conditions and better margins.
- Information relating to its production capacities and the historical capacity utilization of the company production facilities included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and thus its future production and capacity utilization may vary.
- The company depends on third-parties for its transportation needs. Any disruptions may adversely affect its operations, business and financial condition.
- The company is subject to restrictive covenants under its credit facilities that limit the company operational flexibility.
- The company is heavily dependent on its Promoters and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.
- Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.
- The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays or influence its profitability adversely.
- The company's ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- The average cost of acquisition of Equity Shares by its Promoters, is lower than the face value of Equity Share.
- Any future issuance of Equity Shares, or convertible securities or other equity linked securities by it and any sale of Equity Shares by the company significant shareholders may dilute your shareholding and adversely affect the trading price of the Equity Shares.
- Its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- Certain data mentioned in this Red Herring Prospectus has not been independently verified.
- The company has issued Equity Shares during the last one year at a price that will be below the Issue Price.
- Significant differences exist between Indian GAAP and other accounting principles, such as Ind AS, IFRS and U.S. GAAP, which may be material to investors' assessments of its financial condition, result of operations and cash flows.
- Its may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.
- After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
The Issue type of Danish Power Ltd is Book Building - SME.
The minimum application for shares of Danish Power Ltd is 300.
The total shares issue of Danish Power Ltd is 5208000.
Initial public offer of 52,08,000 equity shares of face value of Rs. 10/- each (the "Equity Shares") of Danish Power Limited ("The Company" or "The Issuer") at an issue price of Rs. 380 per equity share (including share premium of Rs. 370 per equity share) for cash, aggregating up to Rs. 197.90 crores ("Public Issue") out of which 260,700 equity shares of face value of Rs. 10 each, at an issue price of Rs. 380 per equity share for cash, aggregating Rs. 9.91 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion") and upto 64,500 equity shares aggregating up to Rs. 2.45 crores for subscription by eligible employees (as defined hereinafter) (the "Employee Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 48,82,800 equity shares of face value of Rs. 10 each, at an issue price of Rs. 380 per equity share for cash, aggregating upto Rs. 185.55 crores is herein after referred to as the "Net Issue". The public issue and net issue will constitute 26.45% and 24.80% respectively of the post-issue paid-up equity share capital of the company.
*Subject to finalization of basis of allotment.
The face value of the equity shares is Rs. 10/- each. The issue price is 38 times with the face value of the equity shares.