Deepak Builders & Engineers IPO Day 1: GMP, Subscription Status, Price Band And More
Deepak Builders & Engineers India's IPO has been subscribed 1.6 times as of 12:30 p.m.
Deepak Builders & Engineers India Ltd. launched its initial public offering on Monday, to raise up to Rs 260 crore. It has been subscribed 1.6 times as of 12:30 p.m.
The grey market premium for the stock was Rs 60 per share, reflecting a 29.56% premium as of 10:59 a.m., according to InvestorGain. However, the GMP is speculative and not an official price.
The price band for the offer is set at Rs 192 to Rs 203 per share. The IPO consists of a fresh issue of nearly 1.1 crore shares worth Rs 217.2 crore and an offer for sale of 0.21 crore shares, amounting to Rs 42.8 crore.
Ahead of the IPO, the company raised Rs 78.01 crore through anchor investors on Friday, allotting 38.42 lakh shares at Rs 203 per share. Neomile Growth Fund led the subscription, acquiring 38.46% of the allotment.
Of the total IPO size, 50% is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. Fedex Securities Pvt. is the sole book-running lead manager for the issue.
Issue Details
Issue opens: Oct. 21.
Issue closes: Oct. 23.
Issue price: Rs 193 to Rs 203 per share.
Fresh issue: Rs 217 crore.
Offer for sale: Rs 42.83 crore.
Total issue size: Rs 260 crore.
Bid lot: 73 shares.
Listing: BSE and NSE.
Business
Deepak Builders & Engineers is an Engineering, Procurement, and Construction company that builds railway bridges and also undertakes development and redevelopment of railway stations.
Its other construction projects include administrative and institutional buildings, hospitals and flyovers, among others. The company had orders worth Rs 1,380 crore as of financial year 2024, of which 66% were from the railways.
Use Of Proceeds
Repayment or prepayment, in full or part, of certain borrowings.
Funding of working capital requirements.
General corporate purposes.
Financials
Revenue of Rs 511 crore in financial year 2024 versus Rs 433 crore in financial year 2023.
Net profit of Rs 60 crore in financial year 2024 versus Rs 21.3 crore in financial year 2023.
The Ebitda margin grew to 22.98% from 12.2%.
Risks include:
Portfolio highly concentrated in Punjab which might subject the company to various risks such as vulnerability to change of policies, laws and regulations or the political and economic environment of
the state.
High dependence on government contracts.
Subscription Status: Day 1
The IPO has been subscribed 1.6 times as of 12:30 p.m. on Monday.
Qualified institutional buyers: nil.
Non-institutional investors: 1.18 times.
Retail investors: 2.7 times.
Deepak Builders & Engineers IPO GMP Today
The grey market premium of Deepak Builders & Engineers IPO was Rs 60 as of Oct. 21, 10:59 a.m. The estimated listing price is Rs 263, a premium of 29.56%, according to InvestorGain.
Investors need to keep in mind that GMP is speculative and is not backed by exchanges.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
