Divine Power Energy makes bumper debut on NSE SME; lists at 288% premium
Divine Power Energy makes bumper debut on NSE SME; lists at 288% premium
Shares of Divine Power Energy made a bumper listing on the NSE SME platform on July, listing at Rs 155, marking a premium of a whopping 288 percent over the IPO price of Rs 40.
The stock's stellar listing was well above grey market expectations of a debut with a 153 percent premium. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
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The company's Rs 22.76-crore public offer consisted of a fresh issuance of 5,690,000 equity shares without any offer-for-sale component. Divine Power's public offer also garnered huge interest from investors as it was subscribed around 394 times.
Retail investors led from the forefront and subscribed the portion set aside 507.94 times, followed by non-institutional investors that bid 473.74 times for their allotted quota. Qualified institutional buyers (QIBs) also bid 135.84 times for the shares set aside for the category.
Meanwhile, the company plans to use the proceeds of the public offer for working capital requirements as well as general corporate purposes.
Incorporated in 2001, Delhi-based Divine Power Energy specialises in manufacturing copper and aluminum wires and strips insulated with materials such as paper, crepe paper, and fiberglass, which are supplied to discoms and transformer manufacturers.
The company also offers super enamelled wires and strips used widely in transformer assembly and repair. Divine Power Energy has a strong presence in North India, serving regions like Uttar Pradesh, Delhi, Uttarakhand, Haryana, Punjab, and Bihar.
Its notable clients include TATA Power, BSES, Uttar Pradesh Power Corporation, and Uttarakhand Power Corporation. The company sources its raw materials from Birla Copper, Hindalco Aluminium, and Nalco.
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