Divine Power Energy Ltd IPO Timeline

Divine Power Energy Ltd IPO opens on 25-Jun-2024, and closes on 27-Jun-2024. The Divine Power Energy Ltd IPO bid date is from 25-Jun-2024 to 27-Jun-2024. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Divine Power Energy Ltd IPO Opening Date 25-Jun-2024
Divine Power Energy Ltd IPO Closing Date 27-Jun-2024
Basis of Allotment 28-Jun-2024
Initiation of Refunds 01-Jul-2024
Credit of Shares to Demat 01-Jul-2024
Divine Power Energy Ltd IPO Listing Date 02-Jul-2024

Divine Power Energy Ltd IPO Lot Size

Divine Power Energy Ltd IPO lot size is 3000 shares. A retail-individual investor can apply for up to 1 lots (3000 shares or 120000).

Application Lots Shares Amount
Minimum 1 3000 ₹120000
Maximum 1 3000 ₹120000

Divine Power Energy Ltd IPO Details

Divine Power Energy Ltd IPO Date 25-Jun-2024 to 27-Jun-2024
Divine Power Energy Ltd IPO Face Value Shares of ₹10 per share
Divine Power Energy Ltd IPO Price ₹36 to ₹40 per share
Divine Power Energy Ltd IPO Lot Size 3000
Issue Size Shares of ₹10 (aggregating up to ₹22.75 Cr)
Fresh Issue Shares of ₹10 (aggregating up to ₹22.76 Cr)
Offer for Sale -
Issue Type Book Building - SME
Listing At NSE - SME
QIB Shares Offered -
Retail Shares Offered -
NII (HNI) Shares Offered -
Company Promoters Rajesh Giri, Vikas Talwar, Dali Giri.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Working capital requirement
  • 2 General corporate purposes

Company Financials

Divine Power Energy Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2023 72.53 150.84 2.85
03-2022 62.73 122.90 0.90
03-2021 61.56 116.60 0.51
Amount in ₹ Crore
  • Experienced management and efficient workforce.
  • Comprehensive solution provider offering diversified suite of precision products across geographies and end-user industries.
  • Scalable business.
  • A strong regional presence.
  • Consistent track record of growth and financial performance.
  • Strong long-standing relationships with clients & suppliers within the industry.
  • Strong, experienced and dedicated senior management team and qualified workforce.
  • Its business is working capital intensive. The company's inability to meet its working capital requirements may have adverse effect on its results of operations. Further, failures to manage its inventory could also have adverse effect on the company's sales, profitability, cash flow and liquidity.
  • The company depends on a few suppliers for its raw materials and any delay, interruption or reduction in the supply of raw materials to manufacture its products or volatility in the prices of raw materials, may adversely affect its business, results of operations, financial condition and cash flows.
  • The company derives a significant portion of its revenue from its top 10 customers. The loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows.
  • The company does not have firm commitment agreements with its customers. If the company's customers reduce their purchases from it or choose not to source their requirements from the company, there may be an adverse effect on its business, results of operations, financial condition and cash flows.
  • Its business is dependent and will continue to depends on the company's manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
  • Its cost of production is exposed to fluctuations in the prices of raw material particularly Copper Rod, Aluminium Rod and insulating material like paper, cotton and fiber glass the Company has not entered into any agreement with respect to long-term supply for raw materials required.
  • The industry segments in which the comapny operate being fragmented, the company faces competition from other players, which may affect its business operational and financial conditions.
  • The company has in the past entered into transactions with related parties and may continue to do so in the future. These or any future related party transactions may potentially involve conflicts of interest and there can be no assurance that the company could not have achieved better terms, had such arrangements been entered into with unrelated parties.
  • The Company has reported certain negative cash flows from its financing activity and investing activity, details of which are given below. Sustained negative cash flow could impact its growth and business.
  • The company is subject to strict quality requirements, regular inspections and audits by its customers, and any failures to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact its business, financial condition and results of operations.
  • In its audited financial statements, the Company did not make any provision for gratuity payment as required under The Payment of Gratuity Act 1972. However, in the Restated Financial Statements, the impact of provision for gratuity payment on the Profits earned by the company has been shown in Annexure-6 "Restated Summary Statement of Reconciliation of Restated Profit/ (Loss) To Profit/ (Loss) as per Audited Financial Statements".
  • The Company has not made provision for Gratuity Payment as required under The Payment of Gratuity Act 1972. The company has not complied with AS-15- Employee Benefits as Issued by ICAI.
  • The Company profit margins are affected by the prices of Copper and Aluminium owing to their cyclical nature.
  • The Company debt-to-equity ratio has remained above 2 in the past three Financial Years and for the stub period.
  • Its business is largely concentrated in two states ("States") and is affected by various factors associated with these states.
  • Compliance with and changes in safety, health and environmental laws and regulations may adversely affect its business, prospects, financial condition and results of operations.
  • Failures or disruption of its information technology systems may adversely affect the company's business, financial condition, results of operations, cash flows and prospects.
  • The Company is dependent on third party transportation providers for transportation of raw materials and finished goods. Accordingly, any increase in transportation costs or unavailability of transportation services for its products or transportation strikes may have an adverse effect on its business.
  • Its success largely depends upon the knowledge and experience of the company Promoters, Directors and its Key Management Personnel/Senior Management as well as the company's ability to attract and retain personnel with technical expertise. Any loss of its Promoters, Directors, Key Management Personnel/Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.
  • The Company does not have any Order Book, mainly accept order through phone calls & emails, which could adversely affect its results of operations.
  • The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
  • If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
  • Any negative publicity or defect in product quality may cause the Company substantial costs which in turn could adversely affect its goodwill and its sales could be diminished.
  • The company is required to maintain certain licenses, approvals, registrations, consents and permits in the ordinary course of business. Failure to obtain the requisite approvals result in non-compliance and therefore, affect its business operations, financial condition, result of operations and prospects.
  • The company has not entered into any formal arrangement for technical support service for maintenance and smooth functioning of its equipment's and machineries, which may affect the company performance.
  • Its Key Management Personnel i.e. Company Secretary & Compliance Officer is associated with the Company less than one year.
  • Its success depends on the company ability to execute its growth strategies. If the company is unable to sustain or manage its growth, its business, results of operations, cash flows and financial condition may be adversely affected.
  • The Company may not completely utilise the Net Proceeds of the Issue for the objects stated in FY 2024-25.
  • The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
  • Its manufacturing capacity may not reach their installed capacity and its may also be unable to effectively utilize the company expanded manufacturing capacities.
  • There have been some instances of delayed filing of records and returns required to be filed by the Company with various regulatory authorities.
  • The company operates in a labour-intensive industry and are subject to stringent labour laws and any strike, work stoppage or increased wage demand by its employees or any other kind of disputes with the company employees could adversely affect its business, financial condition, results of operations and cash flows.
  • The company has significant power and fuel requirements and any disruption to power sources could increase its production costs and adversely affect the company results of operations and cash flows.
  • The company regularly work with hazardous materials and activities in its operation which can be dangerous and could cause injuries to people or property.
  • Improper storage, processing and handling of its raw materials, work products and products could damage its inventories and, as a result, have an adverse effect on the company's business, results of operations and cash flows.
  • In the Financial Year 2022-2023, the Statutory Auditor underwent two changes.
  • Its Independent director does not hold expertise in the company's business field.
  • The Company has availed unsecured loans from banks and other financial institutions, which may be recalled on demand.
  • Its insurance coverage may not be adequate to protect the company against all potential losses, which may have a material adverse effect on its business, financial condition, cash flows and results of operations.
  • Its Directors and Promoters may engage in the same line of business with Group Entities, which could give rise to actual or potential conflicts of interest with its business.
  • The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchanges. Further, the current market price of some securities listed pursuant to initial public offerings which were managed by the Book Running Lead Manager in the past, is below their respective issue prices.
  • Its Promoters and Promoter Group will continue to retain a majority shareholding in the Company after the Issue, which will allow them to exercise significant influence over the company.
  • The average cost of acquisition of Equity Shares by its Promoters and Selling Shareholder could be lower than the floor price.
  • Its future funds requirements, in the form of issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
  • There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.
  • If the company is unable to raise additional capital, its business prospects could be adversely affected.
  • In addition to normal remuneration, other benefits and reimbursement of expenses some of its Directors (including the company Promoter) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
  • Third party industry and statistical data in this Prospectus may be incomplete, incorrect or unreliable.
  • Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.
  • Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
  • After the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
  • Applicants to this Issue are not allowed to withdraw their Applications after the Issue Closing Date.
  • A third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law.
  • Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
  • The requirements of being a publicly listed company may strain its resources.
  • There is no guarantee that the Equity Shares Issued pursuant to this Issue will be listed on the NSE - Emerge in a timely manner.
  • Strengthen its brand value.
  • Expanding its customer base.
  • Quality Assurance.
  • Continue to improve operations.
  • Continue to improve operating efficiencies through technology enhancements.

Divine Power Energy Ltd IPO Promoter Holding

Pre Issue Share Holding 86.00%
Post Issue Share Holding 0%

Divine Power Energy Ltd IPO Subscription Status (Bidding Detail)

The Divine Power Energy Ltd IPO is subscribed - times on Jun 27, 2024 05:00:00 PM. The public issue subscribed - times in the retail category, - times in the QIB category, and - times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) - - - - -

Divine Power Energy Ltd IPO Prospectus

Divine Power Energy Ltd IPO Listing Date

Listing Date 02 Jul 24
BSE Script 92765
NSE Symbol DPEL
Listing In NSE - SME
ISIN INE0SCO01019
IPO Price ₹40
Face Value ₹10

Divine Power Energy Ltd IPO Registrar

Bigshare Services Pvt Ltd

Phone: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com

Divine Power Energy Ltd IPO Lead Manager(s)

  1. Khambatta Securities Ltd

FAQs on Divine Power Energy Ltd IPO

Divine Power Energy Ltd IPO, which opens for subscription from 25-Jun-2024 to 27-Jun-2024 has an issue size of ₹22.75 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Divine Power Energy Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Divine Power Energy Ltd IPO Opens for subscription from 25-Jun-2024 to 27-Jun-2024.

The lot size of Divine Power Energy Ltd is 3000 shares. Retail investors can subscribe to minimum 1 lot and maximum 1 lots. The minimum and maximum application value is ₹120000 and ₹120000 respectively.

Allotment date for Divine Power Energy Ltd is 28-Jun-2024 and refund of application amount (in case allotment is not received) will begin from 01-Jul-2024. If your allotment goes through, then shares will be credited in your Demat account by 01-Jul-2024.

The registrar for Divine Power Energy Ltd IPO is Bigshare Services Pvt Ltd . You can check your IPO allotment status on the registrar's website.

The shares of Divine Power Energy Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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