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Introduction to Deepak Builders & Engineers India Ltd IPO
Deepak Builders & Engineers India is preparing to launch a Rs 260.04 crore book. This IPO subscription is an amalgamation of a fresh issue of Rs 217.21 crore (1.07 crore shares) and an offer-for-sale of Rs 42.83 crore (0.21 crore shares). The firm will be listed on both BSE and NSE.
Retail investors need to invest a minimum of Rs 14,819. Small NII investors require a minimum investment of Rs 207,466 for 1,022 shares, which is 14 lots. Large NII investors need a minimum investment of Rs 1,007,692 for 4,964 shares, which is 68 lots.
Kfin Technologies Ltd is the registrar to the issue. Fedex Securities Pvt Ltd is the book running lead manager in this IPO.
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Deepak Builders & Engineers India Ltd IPO GMP
Deep Builders & Engineers IPO GMP today is Rs 50, as of 24th October, 2024 09:45 AM. The IPO has a price band of Rs 203. The estimated listing price for Deepak Builders & Engineers India Ltd is Rs 253, reflecting a potential gain of 24.70% per share.
For the IPO, the Retail Subject to Sauda is Rs 1,800, and the Small HNI Subject to Sauda is Rs 25,200. The GMP ranges from a low of Rs 11 to a high of Rs 40.
Deepak Builders IPO Company Details
Deepak Builders & Engineers India Limited was established in September 2017. The construction company is mainly involved in the administrative, institutional, industrial structures, hospitals, stadiums, and residential complexes.
This company has executed turnkey projects in architecture, civil works, MEP and firefighting systems, medical gas pipelines, IT systems, and landscaping.
They have three major categories – Construction Projects, Infrastructure Projects, and Product Sales.
Deepak Builders have successfully completed construction and infrastructure projects across the states of Punjab, Haryana, Rajasthan, Uttarakhand, Chandigarh, and Delhi.
The company is currently executing 12 projects that are in progress – that consist of 7 EPC contracts and 5 item rate contracts. The projects include hospitals, medical colleges, administrative buildings, and industrial structures, besides railway station development and road/bridge projects.
As of 30th June 2024, the order book totals Rs 13,803.89 million for Fiscal 2024.Notable past projects include 3D Domes at Jang-E-Azadi and the Heritage Walk at the Golden Temple.
The company employs 632 permanent staff and 2,129 contract workers.
Deepak Builders & Engineers India Ltd IPO Details
| Deepak Builders & Engineers India Ltd IPO Opening Date and Closing Date | 21st October to 23rd October |
| Face Value | Rs 10 per share |
| Price Band | Rs 192 to Rs 203 per share |
| Lot Size | 73 Shares |
| Total Issue Size | 12,810,000 shares (aggregating up to Rs 260.04 Cr) |
| Fresh Issue | 10,700,000 shares (aggregating up to Rs 217.21 Cr) |
| Offer for Sale | 2,110,000 shares (aggregating up to Rs 42.83 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 35,880,860 |
| Shareholding Post Issue | 46,580,860 |
| Basis of Allotment | Thursday, 24th October, 2024 |
| Refund Initiation | Friday, 25th October, 2024 |
| Credit of Shares in Demat | Friday, 25th October, 2024 |
| Listing Date | Monday, 28th October, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 23rd October, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Deepak Builders & Engineers India Ltd lot size, shares, and their value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 73 | Rs 14,819 |
| Retail (Max) | 13 | 949 | Rs 192,647 |
| S-HNI (Min) | 14 | 1,022 | Rs 207,466 |
| S-HNI (Max) | 67 | 4,891 | Rs 992,873 |
| B-HNI (Min) | 68 | 4,964 | Rs 1,007,692 |
Investor categories and Deepak Builders & Engineers India shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Deepak Builders & Engineers India Ltd Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 558.75 Cr. | Rs 449.3 Cr. |
| Revenue | Rs 516.74 Cr. | Rs 435.46 Cr. |
| Profit After Tax | Rs 60.41 Cr. | Rs 21.4 Cr. |
| Net Worth | Rs 141.25 Cr. | Rs 89.35 Cr. |
| Reserves and Supplies | Rs 124.22 Cr. | Rs 64.66 Cr. |
| Total Borrowing | Rs 153.04 Cr. | Rs 96.57 Cr. |
Should You Invest in the Deepak Builders & Engineers India IPO?
Financial Performance:
Revenue: The company generated Rs 106.34 crore in revenue during the period ended on 30th June, 2024.
Profit After Tax (PAT): The company earned a profit of Rs 14.21 crore after deducting taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 155.81 crore.
Financial Position:
Assets: The company’s total assets amounted to Rs 641.1 crore.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 138.23 crore.
Total Borrowing: The company has borrowed a total of Rs 153.17 crore.
Deepak Builders & Engineers India Key Performance Indicators (KPI) and their values:
The market capitalisation of Deepak Builders & Engineers India Ltd IPO is Rs 945.59 crore.
| KPI | Values |
| Return on Equity (ROE) | 8.48% |
| Return on Capital Employed (ROCE) | 8.97% |
| Return on Net Worth (RoNW) | 9.57% |
| Price to Book Value (P/BV) | 4.68 |
| Debt/Equity | 0.91 |
| PAT Margin (%) | 13.52 |
Objectives of Deepak Builders & Engineers India Ltd IPO
The company will apply the net proceeds from this fresh issue to service or pre-service some borrowings, to meet working capital requirements and other general corporate purposes.
Some major risks associated with the Deepak Builders & Engineers India Ltd IPO are:
- The key emphasis of projects puts it under risk for setbacks in the health of its finances.
- Their concentration in Punjab puts it vulnerable to any regional policy or economic change that is liable to destroy its business and operations.
- The company has experienced negative cash flows from operations in the past and may face future losses or cash flow challenges.
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Frequently Asked Questions (FAQs)
What is the price band of Deepak Builders & Engineers India IPO?
Price band has been fixed at Rs 192 and Rs 203 per share.
What is the retail investor quota of Deepak Builders & Engineers India IPO?
A minimum of 35% shares shall go to the retail investors.
Where can I track Deepak Builders & Engineers India’s stock performance?
You can track it on Unicorn Signals after listing.
How can I apply for Deepak Builders & Engineers India’s Initial Public Offer?
Through your demat account or through your bank/financial institution during the IPO period.
When is the Last Date of IPO subscription for Deepak Builders & Engineers India?
The cut-off time is on 23rd October, 2024, by 5 PM; however, most brokers do not take any more applications after 1-3 PM.
