Deepak Builders & Engineers Ltd., a leading construction company in India, is all set to launch its Initial Public Offering (IPO) on October 21, 2024. The company has announced a price band of ₹192 to ₹203 per share, with the subscription period running from October 21 to October 23.
The IPO is expected to raise funds for the company’s ongoing infrastructure projects, with a significant portion of shares being offered through an Offer for Sale (OFS) by the promoters.
IPO Details
- Price Band: ₹192 to ₹203 per share
- IPO Dates: October 21 to October 23, 2024
- Offer Size: 1.07 crore fresh equity shares and 21.1 lakh shares through an Offer for Sale (OFS)
- Lot Size: 73 equity shares per lot
- Anchor Allocation: Anchor investor allocation is scheduled for October 18, 2024.
Deepak Builders & Engineers IPO Key Details
| Detail | Information |
|---|---|
| IPO Price Band | ₹192 – ₹203 per share |
| IPO Opening Date | October 21, 2024 |
| IPO Closing Date | October 23, 2024 |
| Anchor Investor Allocation | October 18, 2024 |
| Fresh Issue | 1.07 crore equity shares |
| Offer for Sale (OFS) | 21.1 lakh equity shares |
| Listing Date | October 28, 2024 |
| Lead Manager | Fedex Securities Pvt Ltd |
| Registrar | KFin Technologies Ltd |
Company Overview
Deepak Builders & Engineers Ltd. was founded in 2017 and specializes in constructing high-end administrative, institutional, and industrial buildings, as well as hospitals, stadiums, and residential complexes.
The company has undertaken turnkey projects across four states in India, including Punjab, Haryana, Rajasthan, and Uttarakhand, and two Union Territories; Chandigarh and the National Capital Territory (Delhi).
Use of IPO Proceeds
The fresh issue of 1.07 crore equity shares will be utilized for the company’s infrastructure projects, including new construction and development of industrial facilities.
Additionally, a portion of the proceeds will be used to repay outstanding debts and fund working capital requirements.
Competitive Landscape
Deepak Builders & Engineers competes with other established companies in the construction and infrastructure sector, including IRCON International Ltd (P/E of 24.67), Ahluwalia Contracts (P/E of 19.25), PSP Projects Ltd (P/E of 19.16), and ITD Cementation Ltd (P/E of 37.04).
Market Outlook
Deepak Builders & Engineers reported a 19% increase in revenue between March 31, 2023, and March 31, 2024. Profit after tax (PAT) also saw an impressive rise of 182%, reflecting the company’s strong financial position.
With India’s construction sector poised for continued growth, the company is well-positioned to capitalize on new opportunities.
IPO Allotment and Listing Dates
- IPO Allotment: October 24, 2024
- Refund Initiation: October 25, 2024
- Listing Date: October 28, 2024, on BSE and NSE
Conclusion
The Deepak Builders & Engineers IPO offers investors a chance to participate in India’s growing infrastructure sector. With a price band set at ₹192-203 per share and solid financial growth, the company is an attractive option for those looking to invest in the construction space.
Disclaimer
The information provided in this article is based on publicly available data as of October 16, 2024. Investors should consult with financial advisors before making investment decisions.
