Deepak Builders and Engineers India Limited, a Punjab-based company, has opened its initial public offering (IPO) for subscription today, October 21, 2024. The IPO aims to attract substantial investments to raise capital for the company’s future projects. This move follows a successful anchor book round in which Deepak Builders secured Rs 78.01 crore from five institutional investors on October 18. Neomile Growth Fund emerged as the largest stakeholder, acquiring 14.77 lakh shares worth Rs 30 crore, followed closely by Citadel Capital Fund, which purchased 9.85 lakh shares for Rs 20 crore. Other investors included Saint Capital Fund, Zeal Global Opportunities Fund, and Elite Capital Fund, collectively investing Rs 28 crore for 13.8 lakh shares.
The IPO price band is set between Rs 192 and Rs 203 per equity share, with a face value of Rs 10. The subscription period runs from October 21 to October 23. The allocation structure is designed to reserve up to 50% of shares for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and a minimum of 35% for retail investors. By 11:50 AM on the first day of bidding, the IPO had already been fully subscribed overall at 1.26 times, with bids for 1,12,94,268 shares against a total offer of 89,67,061 shares, according to Bombay Stock Exchange (BSE) data. Notably, the retail investor segment has been subscribed 2.14 times, while the NII portion stands at 92%, and the QIB portion is yet to be subscribed.
Deepak Builders and Engineers was founded in September 2017 and specializes in constructing various types of structures, including administrative buildings, hospitals, stadiums, and residential complexes. The company has successfully managed comprehensive turnkey projects, overseeing aspects such as architectural design, structural engineering, civil works, mechanical, electrical, and plumbing (MEP) systems, firefighting services, public health systems, IT infrastructure, operating theatres, medical gas pipelines, and landscaping.
The IPO consists of 1.07 crore new equity shares, along with an additional 21.1 lakh shares offered through an Offer for Sale (OFS) by promoters Deepak Kumar Singal and his partner, who currently own nearly 100% of the company. Fedex Securities Pvt Ltd is acting as the book-running lead manager for this IPO, while Kfin Technologies Ltd serves as the registrar. In the grey market, shares of Deepak Builders and Engineers are trading at a premium of Rs 60, suggesting a potential listing price of around Rs 263 per share, which would represent a 29.56% increase over the upper end of the IPO price band. This grey market premium reflects investors’ willingness to pay above the issue price, indicating a positive outlook for the stock’s performance post-listing.
As the subscription period continues until October 23, 2024, investor interest remains high, bolstered by strong institutional support and favorable market conditions. With the ongoing expansion of the construction industry driven by government initiatives and infrastructural demands, this IPO could signify a significant opportunity for the company and its investors alike.
Disclaimer: This document is for informational purposes only and does not constitute financial or investment advice. The performance of Deepak Builders and Engineers India Limited’s IPO, including potential investment returns, is subject to market risks and uncertainties. Prospective investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher of this content do not accept any responsibility for any losses or damages arising from reliance on this information.
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