Deepak Builders & Engineers India Limited is set to make waves in the stock market with its Initial Public Offering (IPO) scheduled from October 21 to October 23, 2024. This IPO aims to raise approximately ₹260.04 crores, comprising a fresh issue of ₹217.21 crores and an offer for sale of ₹42.83 crores. The price band for the shares is fixed between ₹192 and ₹203 per share, making it accessible for retail investors.
Main Points
IPO Timeline
- Opening Date: October 21, 2024
- Closing Date: October 23, 2024
- Allotment Date: October 24, 2024
- Listing Date: October 28, 2024
Lot Size and Investment
Retail investors are required to invest a minimum of ₹14,819, which includes one lot of 73 shares. The total issue size is projected at around ₹260.04 crores, with a face value of ₹10 per equity share.
Reservation Details
The IPO will have a reservation of:
- 35% for Retail Investors
- 50% for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
Anchor Investors
Deepak Builders & Engineers has appointed Fedex Securities Pvt Ltd as the book-running lead manager for the IPO. The company has not yet disclosed specific details regarding anchor investors.
Promoter Holding
The promoter holding details have not been explicitly mentioned in the available resources. However, it is common for companies to retain a significant portion of equity post-IPO to maintain control.
About Deepak Builders & Engineers India Limited
Founded in September 2017, Deepak Builders & Engineers specializes in construction projects across various sectors including:
- Administrative buildings
- Hospitals
- Residential complexes
- Industrial buildings
The company has successfully completed numerous turnkey projects that encompass architectural, structural, civil engineering, and MEP services.
Financial Information
As of the latest financial statements:
- Total Revenue (for the year ending March 31, 2023): ₹4,354.60 million
- Profit After Tax (PAT): ₹213.95 million
- Net Worth: ₹893.47 million
- Return on Capital Employed (RoCE): 26.10%
These figures indicate a steady growth trajectory and a robust financial standing.
Key Performance Indicators
| Metric | Value |
|---|---|
| Total Revenue | ₹4,354.60 million |
| Profit After Tax (PAT) | ₹213.95 million |
| Cash & Cash Equivalents | ₹31.70 million |
| Debt to Equity Ratio | 1.04 |
| Return on Net Worth (%) | 26.80% |
Objects of the Issue
The proceeds from this IPO will be utilized for:
- Repayment/prepayment of certain borrowings.
- Funding working capital requirements.
- General corporate purposes.
IPO Review: Should You Apply?
With a Grey Market Premium (GMP) currently at around ₹32, analysts predict a potential listing price of approximately ₹235, suggesting an estimated gain of about 15.76% upon listing. Given the company’s established track record and growing portfolio in the construction sector, many analysts recommend applying for this IPO.
