Deepak Builders & Engineers IPO Anchor Allocation at 30%

Deepak Builders & Engineers IPO saw a positive anchor allocation response, with 30% of the total IPO size subscribed by anchor investors. Out of 12,810,000 shares on offer, anchors picked up 3,842,939 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 18th October 2024, just ahead of the IPO opening on 21st October 2024.

The book-built issue of ₹260.04 crores comprises a fresh issue of 10,700,000 shares aggregating to ₹217.21 crores and an offer for sale of 2,110,000 shares aggregating to ₹42.83 crores. The price band is set at ₹192 to ₹203 per share, with a face value of ₹10 per share. This includes a share premium of ₹193 per share at the upper end of the price band.

The anchor allocation process, on 18th October 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹203 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the Deepak Builders & Engineers IPO looks as follows:

Notably, the 3,842,939 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 50% before the anchor allocation to 20% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.
 

The lock-in period for anchor investors is an important aspect of the allocation. For Deepak Builders & Engineers India Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 23rd November 2024 
• Lock-in Period (Remaining Shares): 22nd January 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Deepak Builders & Engineers IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 18th October 2024, Deepak Builders & Engineers IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 3,842,939 shares were allotted to 5 anchor investors. The allocation was done at the upper IPO price band of ₹203 per share, resulting in an overall anchor allocation of ₹78.01 crore. The anchors have already absorbed 30% of the total issue size of ₹260.04 crore, indicating strong institutional demand.

Key IPO Details:

• IPO Size: ₹260.04 crores
• Shares Allocated to Anchors: 3,842,939
• Anchor Subscription Percentage: 30%
• Listing Date: 28th October 2024
• IPO Opening Date: 21st October 2024

Read more about Deepak Builders & Engineers IPO

About Deepak Builders & Engineers and How to Apply for Deepak Builders & Engineers IPO

Incorporated in September 2017, Deepak Builders & Engineers India Limited 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 theaters, 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 company has experience in executing projects with varying degrees of complexity, including 3D Domes at Jang-E-Azadi, Kartarpur, Punjab; Heritage Walk at Golden Temple Corridor, Amritsar, Punjab; and fire ramps in specialised steel structures at AIIMS, Delhi.

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