Deepak Builders & Engineers IPO
This report provides comprehensive information about the Deepak Builders & Engineers IPO, including key dates, financial details, company background, and expert analysis.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
About the IPO
Key IPO Dates
The Deepak Builders & Engineers Initial Public Offering (IPO) is a book-built offering valued at Rs 260.04 crores. This includes a fresh issue of 1.07 crore shares (Rs 217.21 crores) and an offer for sale of 0.21 crore shares (Rs 42.83 crores).
The IPO price band is set between ₹192 and ₹203 per share. Here are the minimum investment details for different investor categories:
- Retail investors: 73 shares (₹14,819)
- sNII investors: 14 lots (1,022 shares) at ₹207,466
- bNII investors: 68 lots (4,964 shares) for a total of ₹1,007,692
IPO Details and Reservation
Deepak Builders & Engineers IPO offers 1,28,10,000 shares. 25,62,061 (20%) to QIB, 19,21,500 (15%) to NII, 44,83,500 (35%) to RII and 38,42,939 (30%) to Anchor investors.
Company Overview and Financials
Company Overview
Incorporated in September 2017, Deepak Builders & Engineers India Limited is a construction company specializing in administrative, institutional, and industrial buildings, hospitals, stadiums, residential complexes, and other construction activities.
Financial Performance
Deepak Builders & Engineers India Limited's revenue increased by 19% and profit after tax (PAT) rose by 182% between the financial year ending with March 31, 2024 and March 31, 2023.
IPO Objectives and Promoter Holding
The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:
- Repayment/prepayment, in full or part, of certain borrowings availed by the Company;
- Funding of working capital requirements of the company and
- General corporate purposes.
The Promoters of the Company are Deepak Kumar Singal and Sunita Singal.
Share Holding Pre Issue 100% Share Holding Post Issue 72.50%
IPO Review
Deepak Builders & Engineers is an EPC contractor specializing in various types of construction projects. The company has demonstrated growth in both revenue and profitability in recent periods. However, a notable increase in margins during FY24 warrants further scrutiny. Deepak Builders is a growing player in the engineering and construction sector, particularly in northern India. While the company exhibits consistent revenue and profit growth, it faces potential risks associated with geographical concentration, intense competition, and dependence on government projects. Considering, the overall aspects ipo can be opted for long-term.