Deepak Builders & Engineers IPO to open for subscription on October 21, sets price band at ₹192-203 apiece

Deepak Builders & Engineers IPO price band: Deepak Builders & Engineers Limited IPO price band has been fixed in the range of ₹192 to ₹203 per equity share of a face value of ₹10 each. Deepak Builders & Engineers IPO's date of subscription is scheduled from Monday, October 21 till Wednesday, October 23. The allocation to anchor investors is scheduled to take place on Friday, October 18.

The floor price is 19.2 times the face value of the equity share and the cap price is 20.3 times the face value of the equity shares. The price/earnings ratio basic and diluted EPS for fiscal 2024 at the floor price is 11.40 times and at the cap price is 12.05 times. Deepak Builders & Engineers IPO lot size is 73 equity shares and its multiples thereafter.

Deepak Builders & Engineers IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIBs), not less than 15% for non-institutional Institutional Investors (NIIs), and not less than 35% of the offer is reserved for retail investors.

Tentatively, Deepak Builders & Engineers IPO basis of allotment of shares will be finalised on Thursday, October 24, and the company will initiate refunds on Friday, October 25, while the shares will be credited to the demat account of allottees on the same day following the refund. Deepak Builders & Engineers share is likely to list on BSE and NSE on Monday, October 28.

Deepak Builders & Engineers India Limited was founded in September 2017 and specialises in constructing administrative, institutional, and industrial buildings, as well as hospitals, stadiums, residential complexes, and other construction projects. The company has successfully managed all-inclusive turnkey projects encompassing architectural, structural, civil, MEP, firefighting systems, public health services, IT systems, operation theatres, medical gas pipelines, and landscaping.

Their operations are categorised into three main divisions: Construction Projects, Infrastructure Projects, and Sale of products. The company has completed construction and infrastructure projects in four states of India - Punjab, Haryana, Rajasthan, Uttarakhand - and two Union Territories - Chandigarh and the National Capital Territory of Delhi.

The promoters of the company are Deepak Kumar Singal and Sunita Singal.

As per the red herring prospectus (RHP), the company's listed peers are IRCON International Ltd (with a P/E of 24.67), Ahluwalia Contracts (India) Ltd (with a P/E of 19.25), PSP Projects Ltd (with a P/E of 19.16), and ITD Cementation Ltd (with a P/E of 37.04).

Between March 31, 2023, and March 31, 2024, there was a 19% increase in revenue for Deepak Builders & Engineers India Limited while the profit after tax (PAT) saw a significant rise of 182%.

Deepak Builders & Engineers IPO details

The engineering and construction company plans to issue 1.07 crore fresh equity shares, with an additional 21.1 lakh shares available via offer-for-sale (OFS).

The OFS will include participation from Deepak Kumar Singal and his spouse, who are the company's promoters and currently hold almost 100% stake in the company.

Deepak Builders & Engineers IPO's book-running lead manager is Fedex Securities Pvt Ltd and the registrar for the issue is Kfin Technologies Ltd.

"Our IPO is a momentous occasion for Deepak Builders & Engineers India Limited, marking a new chapter in our journey as a leader in the infrastructure sector. This milestone reflects our commitment to excellence and innovation in delivering high-quality construction and engineering solutions.

The proceeds from the IPO will be instrumental in enhancing our working capital, enabling us to strategically manage our borrowings and invest in future projects that align with our growth objectives. We are excited about the opportunities that lie ahead and remain dedicated to building a sustainable infrastructure that meets the needs of our communities and clients. This IPO will not only strengthen our operational capabilities but also contribute to our long-term growth,” said Deepak Kumar Singal, Chairman & Managing Director, of the company.

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