Divine Power Energy IPO: Raising Rs 22.5 Crore

New Delhi, Jan 24 (PTI) Insulated wires and strips maker Divine Power Energy on Wednesday said it has filed preliminary papers to raise funds through an initial public offering.

The initial public offering (IPO) is entirely a fresh issue of equity shares having face value of Rs 10 each, aggregating up to Rs 22.5 crore, according to the Draft Red Herring Prospectus (DRHP).

Divine Power Energy Ltd (DPEL) announced the filing of its preliminary papers with NSE Emerge, a company statement said.

The company intends to utilise Rs 17 crore of the proceeds for working capital requirements, general corporate purposes and issue-related expenses.

The company manufactures copper and aluminium wires/strips insulated with paper, crepe paper, and fiberglass. It also trades super enamelled wires and strips.

These products are commonly used in assembly and repair of transformers. The company has a significant presence in North India, including Uttar Pradesh, Delhi, Uttarakhand, Haryana, Punjab and Bihar.

DPEL is planning to boost production of the existing products and extend its product portfolio to meet growing demand in both existing and new markets.

The company intends to begin manufacturing tinned copper wire by acquiring modern machinery from abroad.

The company supplies its products to clients, including TATA Power, BSES, Uttar Pradesh Power Corporation and Uttarakhand Power Corporation.

Incorporated in 2001, DPEL is promoted by entrepreneur duo Rajesh Giri and Vikas Talwar.

The company's total revenue stood at Rs 102.95 crore and profit after tax was Rs 2.19 crore in the first half of the current fiscal year ended September 30, 2023.

The company's shares will be listed on NSE Emerge.

Khambatta Securities Ltd is the book-running lead manager to the issue and Bigshare Services Private Ltd is the registrar, the statement said.