Deepak Builders & Engineers IPO Set to Launch on October 21

Deepak Builders and Engineers India Limited is set to open its initial public offering (IPO) to investors on October 21, aiming to raise ₹260.04 crore through this effort. The engineering and construction company has structured the IPO as a book-building issue, which includes both a fresh issue and an offer-for-sale (OFS).

The public offer comprises a fresh issue of approximately 1.07 crore shares, which equates to ₹217.21 crore, and an OFS consisting of 21 lakh shares, accounting for ₹42.83 crore. The price band for the IPO has been established at ₹192 to ₹203 per share, according to the company’s prospectus.

The subscription window for the IPO will remain open until October 23. Interested retail investors can place bids for a minimum lot size of 73 shares, with a minimum investment of ₹14,819. For Small Non-Institutional Investors (sNIIs), the minimum lot size is set at 14 lots, or 1,022 shares, requiring an investment of ₹2,07,466. Big Non-Institutional Investors (bNIIs) will need to invest in 68 lots, equalling 4,964 shares at a cost of ₹10,07,692.

The company has allocated 50% of the net issue size for Qualified Institutional Buyers (QIBs), while retail individual investors are reserved a 35% share. The Non-Institutional Investor (NII) category accounts for the remaining 15% of the net issue size.

Investors will be notified of their share allotment on October 24, with refunds for unsuccessful bids processed on October 25. The allocated shares will be credited to the successful investors’ Demat accounts on the same day. The shares are anticipated to be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on October 28.

Financially, Deepak Builders and Engineers reported a revenue of ₹106.34 crore and a profit-after-tax (PAT) of ₹14.21 crore for the quarter ending June 30, 2024. The company’s revenue for the fiscal year 2024 grew by over 18% to ₹516.74 crore, with a significant PAT increase of over 182% to ₹60.41 crore. The company’s net worth also increased from ₹89.35 crore in FY23 to ₹141.25 crore in FY24.

Deepak Builders and Engineers, a company incorporated in September 2017, specialises in the construction of administrative, institutional, and industrial buildings. The company’s projects include hospitals, stadiums, residential complexes, and various infrastructure works such as bridges and railway stations. Its key competitors in the field are IRCON International Limited, Ahluwalia Contracts (India) Limited, PSP Projects Limited, and ITD Cementation Limited.

The company has completed numerous projects across Punjab, Haryana, Rajasthan, and Uttarakhand, as well as in Chandigarh and the National Capital Territory of Delhi.