Deepak Builders & Engineers IPO Price Band Set at ₹192-₹203 per Share

Deepak Builders & Engineers India Limited, incorporated in September 2017, is a construction company specialising in administrative, institutional, and industrial buildings, hospitals, stadiums, residential complexes, and other construction activities. The company has completed turnkey projects encompassing architectural, structural, civil, MEP, firefighting systems, public health services, IT systems, operation theatres, medical gas pipelines, and landscaping. As of 30th June 2024, the company's order book amounts to ₹13,803.89 million for Fiscal 2024.

The Objectives of the Deepak Builders Issue

The Company proposes to utilise 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
• General corporate purposes

Highlights of Deepak Builders & Engineers IPO

Deepak Builders & Engineers IPO is set to launch with a book-built issue of ₹260.04 crores. The issue is a combination of fresh issue and offer for sale. Here are the key details of the IPO:

• The IPO opens for subscription on 21st October 2024 and closes on 23rd October 2024.
• The allotment is expected to be finalised on 24th October 2024.
• Refunds will be initiated on 25th October 2024.
• Credit of shares to Demat accounts is also expected on 25th October 2024.
• The company will tentatively list on BSE and NSE on 28th October 2024.
• The price band is set at ₹192 to ₹203 per share.
• The fresh issue comprises 1.07 crore shares, aggregating to ₹217.21 crores.
• The offer for sale comprises 0.21 crore shares, aggregating to ₹42.83 crores.
• The minimum lot size for the application is 73 shares.
• Retail investors need to invest a minimum of ₹14,819.
• The minimum investment for small NII (sNII) is 14 lots (1,022 shares), amounting to ₹207,466.
• The minimum investment for big NII (bNII) is 68 lots (4,964 shares), amounting to ₹1,007,692.
• Fedex Securities Pvt Ltd is the book-running lead manager for the IPO.
• Kfin Technologies Limited serves as the registrar.

Deepak Builders & Engineers IPO- Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 23rd October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Deepak Builders & Engineers IPO Issue Details/Capital History

Deepak Builders & Engineers IPO is scheduled from 21st October to 23rd October 2024, with a price band of ₹192 to ₹203 per share and a face value of ₹10. The total issue size is 1,28,10,000 shares, raising up to ₹260.04 crores through a combination of fresh issue and offer for sale. The IPO will be listed on BSE and NSE. The pre-issue shareholding is 3,58,80,860 shares, and the post-issue shareholding will be 4,65,80,860 shares.

Deepak Builders & Engineers IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 73 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Deepak Builders & Engineers Ltd

Strengths:

High-quality construction projects achieved with technology and efficient processes
Modern construction equipment fleet for timely delivery
Experienced management team
Diverse project portfolio across multiple states

Weaknesses:

Relatively new company (incorporated in 2017)
Geographical concentration in Northern India

Opportunities:

Growing infrastructure development in India
Potential for expansion into new geographical areas
Increasing demand for specialised construction projects

Threats:

Intense competition in the construction industry
Economic fluctuations affecting construction demand
Regulatory changes in the real estate and construction sectors

Financial Highlights: Deepak Builders & Engineers Ltd

Below are the consolidated financial results for recent periods:

Deepak Builders & Engineers India Limited has shown significant growth in recent years. The company's revenue increased by 19%, and profit after tax (PAT) rose by 182% between the financial year ending on 31st March 2024 and 31st March 2023.

Revenue has seen substantial growth, rising from ₹3,649.87 lakh in FY22 to ₹5,167.42 lakh in FY24, marking an impressive increase of 41.6% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹176.64 lakh in FY22 to ₹604.1 lakh in FY24, representing a substantial growth of 242% over two years.

Net Worth has shown strong growth, increasing from ₹703.38 lakh in FY22 to ₹1,412.52 lakh in FY24, which represents an increase of about 100.8% over two years.

Total Borrowings have increased from ₹796.48 lakh in FY22 to ₹1,530.42 lakh in FY24, which represents an increase of about 92.1% over two years.

The company's financial performance shows a trend of strong revenue growth and significantly improving profitability. The substantial increase in PAT and Net Worth indicate a strengthening financial position. However, investors should note the increase in borrowings, which may be related to expansion activities. Investors should evaluate these financial trends along with the company's market position and future growth prospects when considering the IPO.