DEE Development Engineers IPO Subscription Status

DEE Development Engineers - IPO subscription Status on Day-3

As of 6.55 pm on 21st June 2024, out of the 149.45 lakh shares on offer in the IPO (excluding anchor portion), DEE Development Engineers saw bids for 14,878.82 lakh shares. This implies an overall subscription of 99.56X at a macro level. The granular break-up of subscriptions as of the close of Day-3 of the DEE Development Engineers IPO was as under:

The subscriptions were led by the QIB investors followed by the HN / NII investors and then the Retail investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids, and the bulk QIB bids come in. That was the case in this IPO also; with most of the HNI and QIB boost coming in on the last day of the IPO. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: BSE

The IPO is open up to June 21, 2024, at which point we will know the final subscription status of the IPO. As of the close of Friday, the IPO has closed for subscription and these are the final subscription figures.

The stock of DEE Development Engineers Ltd has a face value of ₹10 per share and the price band for the book building IPO has been set in the range of ₹193 to ₹203 per share. The issue opened for subscription on 19th June 2024 and closed for subscription on 21st June 2024 (both days inclusive). The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE841L01016).

DEE Development Engineers - IPO Subscription Status on Day-2

As of 5.15 pm on 20th June 2024, out of the 149.45 lakh shares on offer in the IPO (excluding the anchor portion), DEE Development Engineers saw bids for 1,344.03 lakh shares. This implies an overall subscription of 8.99X at a macro level. The granular break-up of subscriptions as of the close of Day-2 of the IPO of DEE Development Engineers was as under:

The subscriptions were led by the HNI / NII investors followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids, and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes the anchor portion.

Data Source: BSE

The IPO is open up to June 21, 2024, at which point we will know the final subscription status of the IPO.

The stock of DEE Development Engineers Ltd has a face value of ₹10 per share and the price band for the book building IPO has been set in the range of ₹193 to ₹203 per share. The issue opened for subscription on 19th June 2024 and closes for subscription on 21st June 2024 (both days inclusive). The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE841L01016).

DEE Development Engineers – Share Allocation Across Categories

The stock of DEE Development Engineers Ltd has a face value of ₹10 per share and the price band for the book building IPO has been set in the range of ₹193 to ₹203 per share. The issue opened for subscription on 19th June 2024 and closes for subscription on 21st June 2024 (both days inclusive). The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE841L01016).

DEE Development Engineers (Day-1 Subscription at 2.51 times)

As of 5.30 pm on 19th June 2024, out of the 149.45 lakh shares on offer in the IPO (excluding anchor portion), DEE Development Engineers saw bids for 374.90 lakh shares. This implies an overall subscription of 2.51X at a macro level. The granular break-up of subscriptions as of the close of Day-1 of the DEE Development Engineers IPO was as under:

The subscriptions were led by the HN / NII investors followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: BSE

The IPO is open up to June 21, 2024, at which point we will know the final subscription status of the IPO.

DEE Development Engineers – Share Allocation Across Categories

The entire anchor allocation was made at the upper end of the price band of ₹203 per share. This includes the face value of ₹10 per share plus a share premium of ₹193 per share, taking the anchor allocation price to ₹203 per share. Let us focus on the anchor allotment portion ahead of the DEE Development Engineers Ltd IPO, which saw the anchor bidding opening and also closing on 18th June 2024. Post the anchor allocation, here is how the overall allocation looked.

Data Source: Company RHP

Here it must be noted that the 61,62,777 shares allocated to the anchor investors on 18th June 2024, were actually reduced from the original QIB quota; and only the residual amount would be available to QIBs in the IPO. That change has been reflected in the table above, with the QIB IPO portion reduced to the extent of the anchor allocation. As a result, the QIB quota has reduced from 49.11% before the anchor allocation to 19.00% after the anchor allocation. The overall allocation to QIBs includes the anchor portion, so the anchor shares allotted has been deducted from the QIB quota for the purpose of the public issue.

About DEE Development Engineers IPO

The IPO of DEE Development Engineers Ltd will be open from June 19th, 2024 to June 21st, 2024; both days inclusive. The stock of DEE Development Engineers Ltd has a face value of ₹10 per share and the price band for the book building IPO has been set in the range of ₹193 to ₹203 per share.  The IPO of DEE Development Engineers Ltd will be a combination of a fresh issue of shares and offer for sale (OFS) component. The fresh issue brings in fresh funds into the company, but is also EPS and equity dilutive. On the other hand, OFS is just a transfer of ownership; and hence neither EPS nor equity dilutive. The fresh issue portion of the IPO of DEE Development Engineers Ltd comprises the issue of 1,60,09,852 shares (160.10 lakh shares approximately), which at the upper price band of ₹203 per share will translate into a fresh issue size of ₹325.00 crore.

The offer for sale (OFS) portion of the IPO of DEE Development Engineers Ltd comprises the sale / offer of 45,82,000 shares (45.82 lakh shares), which at the upper price band of ₹203 per share will translate into an OFS size of ₹93.01 crore. The entire 45.82 lakh shares in the OFS is being offered by promoter shareholder, Krishan Lalit Bansal. Therefore, the total IPO of DEE Development Engineers Ltd will comprise of a fresh issue and an OFS of 2,05,91,852 shares (205.92 lakh shares approximately) which at the upper end of the price band of ₹203 per share aggregates to total issue size of ₹418.01 crore. The IPO of DEE Development Engineers Ltd will be listed on the NSE and the BSE on the IPO mainboard. It may be noted that the final number of shares in the subsequent paragraphs may differ marginally based on summary reallocations done by the company.

The fresh funds will be used for funding working capital needs of the company and also for prepayment / repayment of the high cost debt of the company. The promoters of the company include Krishna Lalit Bansal, Ashima Bansal, and DDE Piping Components Private Ltd. The promoters currently have a 100.00% stake in the company, which will get diluted post IPO to 70.18%. The IPO will be lead managed by SBI Capital Markets and Equirus Capital; while Link Intime India Private Ltd will be IPO registrar.

Next Steps in the DEE Development Engineers

The issue opens for subscription on 19th June 2024 and closes for subscription on 21st June 2024 (both days inclusive). The basis of allotment will be finalized on 24th June 2024 and the refunds will be initiated on 25th June 2024. In addition, the demat credits are expected to also happen on 25th June 2024 and the stock will list on 26th June 2024 on the NSE and the BSE. DEE Development Engineers will test the appetite for private sector new age engineering stocks in India. The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE841L01016).