Deepak Builders & Engineers IPO: What GMP signals as the upcoming IPO opens next week?

Deepak Builders & Engineers IPO: Construction firm Deepak Builders & Engineers India's initial public offering (IPO) is set to open next week on Monday, October 21. The issue, with a price band of ₹192 to ₹203 per share, will remain open till Wednesday, October 23. The upcoming IPO combines a fresh issue of 1.07 crore shares and an offer for sale (OFS) of 21 lakh shares. Thus, the mainboard issue has a total size of 1,28,10,000 shares. Grey market trends signal the stock could be listed at a premium. The last grey market premium (GMP) of Deepak Builders Engineers was ₹32.

Deepak Builders & Engineers IPO GMP

According to market sources, around 11 AM on Friday, the GMP of Deepak Builders Engineers was ₹32. Considering the upper price band of the issue of ₹203 and the last GMP, the shares of Deepak Builders Engineers are expected to debut at ₹235 at a premium of 15.76 per cent with respect to the issue price.

Deepak Builders & Engineers IPO details

The ₹260.04 crore mainboard IPO will open for subscription on coming Monday (October 21) and will remain so till Wednesday (October 23).

Retail investors can purchase a minimum of one lot, which consists of 73 shares. With the price band set between ₹192 and ₹203 per share, the minimum investment required for one lot amounts to ₹14,819. The maximum lot size for retail investors is 13. About 35 per cent of the net issue is reserved for retail investors, 15 per cent for NIIs, and the remaining 50 per cent is reserved for QIBs.

Fedex Securities Pvt Ltd is the book-running lead manager, while Kfin Technologies Limited is the registrar for the Deepak Builders & Engineers IPO.

The company is expected to finalise share allotment on Thursday, October 24. Successful bidders may get the shares credited into their demat account on Friday, October 25, and those who fail to get the allotment may get the refund on the same day. Shares of the company may debut on the BSE and the NSE on tentatively Monday, October 28.

The company aims to raise about ₹217.21 crore through a fresh issue of 1.07 crore shares. It intends to use the proceeds to pay certain borrowings and fund working capital requirements. Some parts of the proceeds will be used for general corporate purposes.

Deepak Builders & Engineers business overview

Deepak Builders & Engineers India Limited specialises in the construction of administrative, institutional, and industrial buildings, hospitals, stadiums, residential complexes, and various other construction projects.

For FY22, FY23 and FY24, the company's profit after tax stood at ₹17.66 crore, ₹21.4 crore and ₹60.41 crore, respectively. Revenue for FY22, FY23 and FY24 stood at ₹364.99 crore, ₹435.46 crore and ₹516.74 crore, respectively.

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