Deepak Builders IPO Opens Monday: Strong Interest Expected for ₹260 Crore Issue

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Deepak Builders IPO Opens Monday: Strong Interest Expected for ₹260 Crore Issue

Deepak Builders IPO opens Monday

Deepak Builders & Engineers India’s initial public offering (IPO) is set to open on Monday, October 21, 2024, and will remain available until Wednesday, October 23. The IPO has a price range of ₹192 to ₹203 per share and comprises both a fresh issue of 1.07 crore shares and an offer for sale (OFS) of 21 lakh shares, totaling 1,28,10,000 shares. With the total issue size of ₹260.04 crore, the IPO is expected to generate significant interest, especially given its grey market premium (GMP), which was reported at ₹32. Based on the upper price band of ₹203 and the GMP, the shares are predicted to debut at around ₹235, a 15.76% premium.

Retail investors can participate by purchasing a minimum of one lot, which includes 73 shares, requiring an investment of at least ₹14,819. They can buy up to 13 lots. The IPO allocates 35% of shares for retail investors, 15% for non-institutional investors (NIIs), and 50% for qualified institutional buyers (QIBs). Fedex Securities Pvt Ltd is acting as the book-running lead manager, and Kfin Technologies Limited is the registrar.

Deepak Builders IPO Opens Monday: Strong Interest Share allotment is expected to be finalized on Thursday, October 24, with successful bidders receiving shares in their demat accounts on Friday, October 25, and refunds issued to those who do not get allotments on the same day. The company’s stock is tentatively scheduled to be listed on the BSE and NSE on Monday, October 28.

The firm plans to raise approximately ₹217.21 crore through the fresh issue, which will be used to repay certain debts, cover working capital needs, and for general corporate purposes. Deepak Builders & Engineers focuses on constructing administrative, institutional, and industrial buildings, hospitals, stadiums, residential complexes, and more. Over FY22 to FY24, its profit after tax grew from ₹17.66 crore to ₹60.41 crore, while revenue increased from ₹364.99 crore to ₹516.74 crore.

Deepak Builders IPO Opens Monday: Strong Interest Deepak Builders & Engineers India raised ₹78.01 crore from five institutional investors via its anchor book on October 18, ahead of its IPO opening on October 21. The company aims to raise ₹260.04 crore through the IPO, which is priced between ₹192 and ₹203 per share. This consists of a fresh issue of 1.07 crore shares worth ₹217.21 crore and an offer-for-sale (OFS) of 21.1 lakh shares totaling ₹42.83 crore. Promoters Deepak Kumar Singal and Sunita Singal will be the selling shareholders in the OFS.

In the anchor portion, the company allocated 38,42,939 shares at ₹203 per share. The largest investor, Neomile Growth Fund, purchased 14.77 lakh shares for ₹30 crore, while Citadel Capital Fund acquired 9.85 lakh shares for ₹20 crore. Other investors, including Saint Capital Fund, Zeal Global Opportunities Fund, and Elite Capital Fund, invested ₹28 crore for 13.8 lakh shares combined.

Deepak Builders IPO Opens Monday: Strong Interest Of the IPO proceeds, ₹30 crore will be used to repay debt, ₹111.96 crore will go towards working capital needs, and the remainder will cover general corporate purposes. Deepak Builders currently has 12 ongoing construction and infrastructure projects, including seven EPC and five item-rate or percentage-rate contracts. As of June 2024, its order book stands at ₹1,380.4 crore, with 66% of projects in the railway sector.

Deepak Builders IPO Opens Monday: Strong Interest Deepak Builders & Engineers India Limited is gearing up for its initial public offering (IPO), which will open for subscription on Monday, October 21, 2024, and close on Wednesday, October 23, 2024. With a price band set between ₹192 and ₹203 per share, the IPO has generated strong interest, especially as grey market trends suggest a premium listing. As of Friday morning, the company’s grey market premium (GMP) was ₹32, indicating that shares might list at around ₹235, representing a 15.76% premium over the upper price band.

The IPO consists of a fresh issue of 1.07 crore shares and an Offer for Sale (OFS) of 21 lakh shares, totaling 1.28 crore shares. The issue is expected to raise ₹260.04 crore, with approximately ₹217.21 crore coming from the fresh issue. Retail investors can purchase a minimum of one lot, which includes 73 shares, requiring a minimum investment of ₹14,819 at the upper price band. Retail investors can buy a maximum of 13 lots, amounting to a total investment of ₹1,92,647.

The allocation breakdown reserves 35% of the issue for retail investors, 15% for non-institutional investors (NIIs), and 50% for qualified institutional buyers (QIBs). Fedex Securities Pvt Ltd is managing the IPO as the book-running lead manager, while KFin Technologies Limited is the registrar.

Deepak Builders IPO Opens Monday: Strong Interest After the subscription closes on October 23, the share allotment will be finalized on Thursday, October 24, 2024. Investors who receive shares will have them credited to their demat accounts by Friday, October 25, 2024, and refunds will be processed for those who don’t receive allotments. The shares are expected to debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Monday, October 28, 2024.

Deepak Builders plans to use the ₹217.21 crore raised from the fresh issue to pay down certain debts and meet working capital needs, with a portion allocated for general corporate purposes.

The company has a solid reputation in the construction industry, focusing on projects like administrative and industrial buildings, hospitals, stadiums, and residential complexes. Financially, Deepak Builders has seen consistent growth, with profit after tax rising from ₹17.66 crore in FY22 to ₹60.41 crore in FY24, and revenue increasing from ₹364.99 crore in FY22 to ₹516.74 crore in FY24. This strong performance and the positive grey market sentiment suggest strong demand for the IPO across investor categories.