Dee Development Engineers Shares End At 64% Premium Over IPO Price
The Rs 418-crore IPO was subscribed 99.56 times on its final day, led by institutional investors.
Shares of Dee Development Engineers Ltd. ended on the National Stock Exchange at Rs 333.3 apiece, a premium of 64.2% over its issue price of Rs 203 per share. On the BSE, the stock closed at Rs 333.8 per share, marking a premium of 64.43%.
The Rs 418-crore initial public offering was subscribed 99.56 times on its final day, led by institutional investors. The IPO consisted of a fresh issue of Rs 325 crore or 1.6 crore shares and an offer for sale of 0.46 crore shares amounting to Rs 93 crore.
A major part of the fundraising will be allocated for debt repayment. The company plans to utilise Rs 175 crore for the pre-payment or repayment of certain outstanding borrowings. For working capital requirements, Rs 75 crore will be allocated, while an equal amount will be for general corporate purposes
Business
DDEL, which operates under the DEE Piping Systems brand, provides specialised process piping solutions for sectors like oil and gas, power and chemicals. It manufactures piping products, like high-pressure piping systems, piping spools and high-frequency induction pipe bends.
The engineering company has seven manufacturing facilities, including one in Bangkok and three in Palwal, Haryana.
Between fiscals 2021 and 2023, DDEL's revenue from operations grew at a compound annual growth rate of 9.66%, reaching Rs 595.5 crore. The company posted a profit of Rs 12.97 crore in the year ended March 2023.
