Divine Power Energy Shares Make Impressive Debut, Opening 288% Above Issue Price at ₹155 on NSE SME

Divine Power Energy shares opened at ₹155 on the NSE SME, soaring 287.5% above their issue price of ₹40.

The IPO, available for subscription until June 27, was priced between ₹36 and ₹40 per share. Divine Power Energy specializes in manufacturing winding wires and strips for transformers and power distribution companies.

The company's shares debuted on the NSE SME today with a substantial opening at ₹155, significantly higher than the issue price of ₹40.

Despite the strong start, the stock experienced a decline post-listing.

The IPO for Divine Power Energy Ltd. was open from June 25 to June 27, with a lot size of 3,000 shares. Each share had a face value of ₹10, and the IPO price band was set between ₹36 and ₹40. The IPO was highly subscribed, reaching 393.67 times on the third day.

Divine Power Energy produces winding copper/aluminum wires, bare copper/aluminum wires, and winding strips.

The manufacturing process includes annealing, insulating, and coating these wires and strips with materials such as paper, cotton, and fiberglass.

These products are used by transformer manufacturers and power distribution companies for repairs and new constructions.

According to the red herring prospectus (RHP), Divine Power Energy's listed competitors include Shera Energy Ltd (P/E of 34.17), Bhagyanagar India Ltd (P/E of 7.63), Rajnandini Metal Ltd (P/E of 19.49), Ram Ratna Wires Ltd (P/E of 32.83), and Precision Wires India Ltd (P/E of 33.60).

The company saw a profit after tax (PAT) increase of 124.82% and revenue growth of 47.65% between March 31, 2023, and March 31, 2024.

 

Details of Divine Power IPO

 

The ₹22.76 crore IPO includes a fresh issue of 5,690,000 equity shares with a face value of ₹10 each, with no offer-for-sale component.

The funds raised will be used for working capital and general corporate purposes.

Bigshare Services Pvt Ltd is the registrar for the IPO, while Khambatta Securities Limited is the book running lead manager. Nikunj Stock Brokers is the market maker for the IPO.

 

Divine Power IPO Grey Market Premium (GMP) Today

 

Today's GMP for Divine Power IPO is +61, indicating that shares were trading at a ₹61 premium in the grey market, according to investorgain.com.

The estimated listing price was ₹101 per share, 152.5% above the IPO price of ₹40, based on the upper end of the IPO price band and the current grey market premium.

The 'grey market premium' reflects investors' willingness to pay more than the issue price.

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