Deepak Builders IPO Opens On Monday: Issue Size, Price Band, GMP—All You Need To Know
The price band for Deepak Builder's IPO has been fixed at Rs 192 to Rs 203 per share. The shares were commanding a grey market premium or GMP of Rs 60 apiece on Sunday.
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Deepak Builders & Engineers India Ltd., an engineering and construction company, will launch its initial public offering on Monday to raise up to Rs 260 crore. The three-day subscription window will close on Wednesday.
The book build IPO comprises a fresh issue of nearly 1.1 crore shares worth Rs 217.2 crore, and offer-for-sale component of 0.21 crore shares amounting to Rs 42.8 crore.
The price band for the offer has been fixed at Rs 192 to Rs 203 per share. The shares were commanding a grey market premium or GMP of Rs 60 apiece, as of 11:30 a.m. on Sunday, according to Investor Gain.
The current GMP takes the estimated listing price to Rs 263 per share—the sum of GMP and the upper end of the IPO price band—which could result in listing day gains of 29.5%. However, the GMP is not an official price quote for the stock and is based on speculation.
Out of Deepak Builders' total IPO size, 50% is reserved for qualified institutional buyers, 35% for retail buyers, and 15% for non-institutional investors.
Fedex Securities Private Ltd is the sole book-running lead manager to the issue.
Deepak Builders IPO: Key Details
Issue opens: Oct. 21.
Issue closes: Oct. 23.
Total offer size: Rs 260 crore.
Fresh issue size: Rs 217.2 crore.
OFS size: Rs 42.8 crore.
Face value: Rs 10 apiece.
Fixed price band: Rs 192-Rs 203 per share.
Lot size: 73 shares.
Listing: NSE, BSE.
Use Of Proceeds
From the fresh issue, funds to the tune of Rs 112 crore will be utilised for working capital requirements, as per the red herring prospectus filed by the company ahead of the IPO.
An amount Rs 30 crore will also be used for payment of debt, Deepak Builders said. Besides, a portion from the net proceeds will be kept aside for general corporate purposes, as per the draft papers filed with the regulators.
Financials
In the fiscal year ended Mar. 31, 2024, Deepak Builders had logged a net revenue from operations of Rs 511.4 crore. This was higher as compared to Rs 433.5 crore in fiscal 2023, as per the financial results shared in the RHP.
The net profit in fiscal 2024 stood at Rs 60.4 crore, around thrice as compared to Rs 21.3 crore in the preceding financial year.
During the same period, the earnings before interest, tax, depreciation and amortisation increased to Rs 117.5 crore from Rs 52.8 crore. The Ebitda margin grew to 22.98% from 12.2%
In the quarter ended June 2024, the company posted a net revenue of Rs 105.1 crore and a net profit of Rs 14.2 crore. The Ebitda stood at Rs 31.4 crore. The comparable year-ago statistics were not shared in the pre-IPO document.
Shareholding Pattern
Presently, 100% of the company's stake is held by promoter and promoter groups. Out of the total pre-issue shares of 3,58,80,560, a total of 90.04%, or 3.23 crore shares are owned by Deepak Kumar Singal, the chairman and managing director of the company.
Sunita Singal, who is the company's wholetime director, owns 9.93% or 35.64 lakh shares.
Heena Singal and Akash Singal are two other shareholders, owning a miniscule stake of 0.02% and 0.01%, respectively.
Through the OFS component of the IPO, Deepak Kumar Singal will be offloading 19.2 lakh shares and Sunita Singal will be selling 1.9 lakh shares, as per the RHP.
