Divine Power Energy Limited (The Company or DPEL), one of the leading manufacturers of insulated wires and strips, announced the filing of its Draft Red Herring Prospectus (DRHP) with NSE Emerge. The initial public offering (IPO) comprises a fresh issue of Equity Shares having a face value of Rs. 10/- each, aggregating up to Rs. 22.5 crore. The company has appointed Khambatta Securities Limited as the Book Running Lead Manager to the issue while Bigshare Services Private Limited is the Registrar.
The New Delhi-headquartered company intends to utilise Rs. 17 crore of the net proceeds from the offering for working capital requirements. Of this, the company plans to use Rs. 10 crore in the current fiscal year and Rs. 7 crore in FY2025. It plans to utilise the remaining capital for general corporate purposes and issue-related expenses.
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. 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.
The company operates a cutting-edge manufacturing plant with an installed capacity of 300 metric tonnes of aluminium and 400 metric tonnes of copper per month. The plant is strategically located in Ghaziabad and has sufficient storage facility for holding inventories of raw materials as well as finished products, ensuring stability of operations. 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.
DPEL started producing fiberglass-insulated winding wires used in manufacturing electromagnetic lifting magnets and dry state transformers in the current calendar year. Furthermore, it intends to cater to the solar and automotive ancillary industries by offering tinned copper wires. The solar industry uses tinned copper wires to manufacture solar panels, while the automobile ancillary industry uses them to make harness wire. With an eye on the growing market demand, DPEL intends to begin manufacturing tinned copper wire by acquiring modern machinery from abroad.
The company supplies its products to reputed clients such as TATA Power Limited, BSES, Uttar Pradesh Power Corporation Limited and Uttarakhand Power Corporation Limited etc. It sources its raw material from reliable and prominent suppliers such as Birla Copper, Hindalco Aluminium and NALCO etc.
Incorporated in 2001, DPEL is promoted by an accomplished entrepreneur duo – Mr. Rajesh Giri and Mr. Vikas Talwar. With over forty years of combined experience in manufacturing copper wire, aluminium wire and allied products, the promoters are actively involved in day-to-day operations and play a pivotal role in the company’s growth journey.
The company leverages an in-house quality control lab with testing equipment to ensure the quality of its products. Its finished goods undergo stringent quality checks to ensure that the industry’s best quality standards are met.
DPEL posted a total revenue of Rs. 102.95 crore and a profit (PAT) of Rs. 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, against Rs. 122.90 crore in FY22. It earned a profit (PAT) of Rs. 2.85 crore in FY2022-23, up from Rs. 90.16 lakh in the previous financial year.
