Divine Power jumps four-fold at NSE-SME listing

Divine Power Energy Ltd (DPEL) on Tuesday made a bumper listing following blockbuster IPO on NSE-Emerge platform.

As against the IPO price of ₹40, the stock listed at ₹155, a premium of 288 per cent. After hitting a high of ₹162.75 and ₹147.25, the stock closed at ₹152.70, nearly four-fold.

Last week, the ₹22.76-crore issue had received an overwhelming response from all category investors. While the QIB portion was subscribed nearly 136 times, retail investors were the most aggressive by subscribing 508 times. The quota for non-institution (HNIs) was subscribed about 474 times.

• Also read: Divine Power IPO subscribed 369x at NSE-Emerge

The IPO comprised a fresh issue of 56.88 lakh equity shares and came out with a price band of ₹36-40. 

Khambatta Securities Limited is the sole Book Running Lead Manager, and Bigshare Services Private Limited is the Registrar for the issue.

DPEL proposes to utilise ₹18 crore of the net IPO proceeds to meet its working capital requirements and plans to use the remaining for general corporate purposes. 

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, 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. The company manufactures insulated and bare wires as well as strips with copper and aluminium; operates a cutting-edge manufacturing facility at Ghaziabad. DPEL supplies its products to reputed clients such as Tata Power, BSES, Uttar Pradesh Power Corporation and Uttarakhand Power Corporation.