Divine Power gains 288% at NSE-Emerge 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 over the IPO price. After hitting a high of ₹162.75 and a ₹147.25, the stock is currently ruling at ₹154.90.

Last week, the ₹22.76-crore issue 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.

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 Ltd and Uttarakhand Power Corporation Limited.