Insulated wire and strip manufacturer Divine Power Energy, on Wednesday, filed a Draft Red Herring Prospectus (DRHP) at NSE Emerge.
The initial public offering (IPO) consists of a fresh issue of Equity Shares having a nominal value ₹10/- each, aggregating up to ₹22.5 crores. The company has appointed Khambatta Securities Limited as the Book Running Lead Manager to the issue while Bigshare Services Private Limited is the Registrar.
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The New Delhi-based company intends to use ₹17 crore from the net proceeds of the offer for working capital requirements. From this, the company plans to use ₹10 crore in the current fiscal year and ₹7 crore in FY2025. It plans to use the remaining capital for general corporate purposes and issue-related expenses.
DPEL manufactures copper and aluminum wires/strips insulated with paper, crepe paper and fiberglass, and supplies them to discotheques and transformer manufacturers. The company also trades in enamelled wires and strips. These products are often used in the assembly and repair of transformers. The company has a significant presence in North India, including Uttar Pradesh, Delhi, Uttarakhand, Haryana, Punjab and Bihar.
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The company operates a state-of-the-art plant with an installed capacity of 300 metric tons of aluminum and 400 metric tons of copper per month. The plant is strategically located in Ghaziabad and has sufficient warehouse space to hold inventories of raw materials as well as finished products, ensuring stability of operations. DPEL plans to ramp up production of the existing products and expand its product portfolio to meet growing demand in both existing and new markets.
Incorporated in 2001, DPEL is promoted by an accomplished entrepreneur duo – Rajesh Giri and Vikas Talwar. With more than forty years of combined experience in manufacturing copper wire, aluminum wire and related products, the promoters are actively involved in day-to-day operations and play a pivotal role in the company’s growth journey.
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DPEL posted a total revenue of ₹102.95 crore and a profit (PAT) of ₹2.19 crore in the first half of the current fiscal year ending September 30, 2023. The company recorded a revenue of Rs. 150.84 crore in FY23, vs ₹122.90 crore in FY22. It earned a profit (PAT) of ₹2.85 crore in FY2022-23, up from ₹90.16 lakh in the previous financial year.
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Published: 24 Jan 2024, 18:06 IST