Divine Power Energy Stock Makes Debut On NSE Emerge; Lists At 288% Premium Over IPO Price

Divine Power Energy, a manufacturer of insulated wires and strips, on Tuesday made a stellar debut on the NSE Emerge platform. The stock was listed at Rs 155/-, at a premium of 288 per cent over the fixed price band of Rs 40/-.

Last week, the issue received an overwhelming response from the investors as the QIB portion was subscribed 153.09 times, the NII portion was subscribed 529.73 times and the retail individual investors (RII) quota was subscribed 567.59 times, bringing the overall subscription to 368.66 times, until the final day of bidding on June 27, garnering bids worth over Rs 6,700 crore.
 
The IPO comprised a fresh issue of 56.88 Lakh Equity Shares with a face value of Rs 10/- through the book-building route. Khambatta Securities Limited is the sole Book Running Lead Manager, and Bigshare Services Private Limited is the Registrar for the issue.
 
The anchor book of the IPO was subscribed to by a group of high-profile investors, including Imvesta Growth Scheme, Saint Capital Fund, Zinnia Global Fund PCC – Nolana, Craft Engineering Market Fund PCC – Citadel Capital Fund and India Ahead Venture Fund. The company has allotted 2.88 Lakh equity shares for Market Maker, 16.2 Lakh equity shares for anchor investors, 10.8 Lakh equity shares allocated for QIBs, 8.1 Lakh equity shares for HNIs, and the Retail (RII) portion accounts for 18.9 Lakh equity shares. The lot size is 3,000 shares.
 
The New Delhi-headquartered company aims to raise Rs 22.76 crore from the issue and intends to utilize Rs 18 crore of the IPO proceeds to meet the working capital requirements and plans to use the remaining capital for general corporate purposes.
 
DPEL manufactures copper and aluminium wires/strips insulated with paper, crepe paper, and fibreglass and supplies them to discoms and transformer manufacturers. The company also trades super-enamelled wires and strips, which are commonly used in transformer assembly and repair. It has a significant presence in North India, including Uttar Pradesh, Delhi, Uttarakhand, Haryana, Punjab, and Bihar.