Danish Power Limited — Results, 10-07-2025: Reply to Clarification- Financial results

Danish Power Limited has announced a board meeting to consider the financial results for the quarter and half-year.

The company raised Rs. 197.90 crore through its IPO, with proceeds allocated across five key objects: expansion of manufacturing facilities (Rs. 36.99 Cr), working capital requirements (Rs. 85.00 Cr), repayment of borrowings (Rs. 20.00 Cr), general corporate purposes (Rs. 38.38 Cr), and issue expenses (Rs. 17.53 Cr).

As of March 31, 2025, Danish Power has utilized Rs. 97.90 crore of the IPO proceeds, with Rs. 100 crore remaining unutilized and parked in fixed deposits earning 7.4-7.76% interest. Utilization highlights include:

- Rs. 11.54 crore spent on capital expenditure for factory expansion, including machinery and equipment.

- Rs. 38.90 crore used for working capital, mainly payments to vendors for raw materials.

- Full repayment of Rs. 20 crore borrowings.

- Rs. 9.93 crore utilized under general corporate purposes, including Rs. 7.60 crore as advance for leasing 4.81 acres of land at Mahindra World City, Jaipur.

- Issue expenses fully paid (Rs. 17.53 crore).

There have been delays in completing the expansion, working capital deployment, and general corporate purposes as per the original timelines, but no material deviations from the objects disclosed in the offer document. The company clarified that land lease payments fall under general corporate purposes to support business growth.

Overall, Danish Power is progressing steadily with IPO fund deployment, maintaining transparency in utilization and parking unutilized funds in secure fixed deposits.