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Business News/ Markets / Ipo/  Delhi-based Divine Power Energy Limited files DRHP with NSE Emerge
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Delhi-based Divine Power Energy Limited files DRHP with NSE Emerge

The IPO comprises a fresh issue of equity shares having a face value of ₹10/- each, aggregating up to ₹22.5 crore.

Divine Power Energy files DRHP with NSE Emerge Photo: iStock (iStock)Premium
Divine Power Energy files DRHP with NSE Emerge Photo: iStock (iStock)

Insulated wires and strips manufacturer Divine Power Energy, on Wednesday, has filed Draft Red Herring Prospectus (DRHP) with NSE Emerge. 

The initial public offering (IPO) comprises a fresh issue of Equity Shares having a face value of 10/- each, aggregating up to 22.5 crore. The company has appointed Khambatta Securities Limited as the Book Running Lead Manager to the issue while Bigshare Services Private Limited is the Registrar.

Also read: Government allows direct listing of securities by Indian companies on GIFT IFSC

The New Delhi-headquartered company intends to utilise 17 crore of the net proceeds from the offering for working capital requirements. Of this, the company plans to use 10 crore in the current fiscal year and 7 crore in FY2025. It plans to utilise the remaining capital for general corporate purposes and issue-related expenses.

DPEL manufactures copper and aluminium wires/strips insulated with paper, crepe paper, and fiberglass, and supplies them to discoms and transformer manufacturers. The company also trades super enamelled wires and strips. These products are commonly used in assembly and repair of transformers. The company has a significant presence in North India, including Uttar Pradesh, Delhi, Uttarakhand, Haryana, Punjab and Bihar.

Also read: IPO investors call for rules to keep anchors from selling early

The company operates a cutting-edge manufacturing plant with an installed capacity of 300 metric tonnes of aluminium and 400 metric tonnes of copper per month. The plant is strategically located in Ghaziabad and has sufficient storage facility for holding inventories of raw materials as well as finished products, ensuring stability of operations. DPEL is planning to boost production of the existing products and extend its product portfolio to meet growing demand in both existing and new markets.

Incorporated in 2001, DPEL is promoted by an accomplished entrepreneur duo – Rajesh Giri and Vikas Talwar. With over forty years of combined experience in manufacturing copper wire, aluminium wire and allied products, the promoters are actively involved in day-to-day operations and play a pivotal role in the company’s growth journey.

Also read: Nova Agritech IPO: Here are key risk factors to know before you subscribe to the issue

DPEL posted a total revenue of 102.95 crore and a profit (PAT) of 2.19 crore in the first half of the current fiscal year ending September 30, 2023. The company recorded a revenue of Rs. 150.84 crore in FY23, against 122.90 crore in FY22. It earned a profit (PAT) of 2.85 crore in FY2022-23, up from 90.16 lakh in the previous financial year.

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Published: 24 Jan 2024, 06:06 PM IST
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