The 10 Most Shocking Facts About Deepak Builders IPO

The 10 Most Shocking Facts About Deepak Builders IPO Deepak Builders is set to announce the status of its share allotment on Thursday, October 24. The company’s IPO was significantly oversubscribed, with a total subscription rate of 41.54 times, receiving bids for 37.25 crore equity shares against 89.67 lakh shares available for sale. The IPO opened on October 21 and closed on October 23, with a price range of ₹192 to ₹203 per share.

On the final day of the offering, the qualified institutional buyer (QIB) segment was subscribed 13.91 times, while the non-institutional investor segment saw a subscription rate of 82.47 times. Retail participation was also strong, with a subscription rate of 39.79 times. Currently, the shares of Deepak Builders are trading at a grey market premium (GMP) of ₹60 per share.

To check the allotment status, visit the registrar’s website, select ‘Deepak Builders’ under ‘Company Selection,’ and enter your PAN, application number, DP/Client ID, or account number/IFSC. You can also verify the allotment status through the BSE or NSE websites. For the BSE, navigate to the ‘Equity’ section, choose ‘Deepak Builders,’ and input your application number and PAN to view your allotted shares. The shares are expected to be listed on the stock exchanges on October 28.

The 10 Most Shocking Facts About Deepak Builders IPO The initial public offering (IPO) of Deepak Builders & Engineers, which opened for subscription on Monday, October 21, has attracted significant interest from retail and non-institutional investors (NIIs). The ₹260.04 crore book-built issue is priced between ₹192 and ₹203 per share. Today, Wednesday, October 23, is the final day for subscriptions.

This issue includes a fresh issue of 1.07 crore shares alongside an offer for sale (OFS) of 21 lakh shares. The company plans to use the net proceeds to pay off debt, meet working capital needs, and for general corporate purposes.

KFin Technologies Limited serves as the official registrar for the book build, while Fedex Securities acts as the lead manager for the public offering. Market sources indicate that the latest grey market premium (GMP) for the stock is ₹62. Given the upper price band of ₹203, the estimated listing price is projected to be ₹265, reflecting a premium of 30.54%.

The 10 Most Shocking Facts About Deepak Builders IPO By 11:30 AM on the third day of subscription, the issue had been subscribed 18.10 times, with bids for 16,23,47,547 shares against the 89,67,061 shares available. The retail investor segment was subscribed 22 times, receiving bids for 9,86,35,264 shares against 44,83,500 shares offered, while the NII segment saw a subscription rate of 31.67 times, with bids for 6,08,50,683 shares against 19,21,500 offered. The qualified institutional buyer (QIB) segment was subscribed 1.12 times, with bids for 28,61,600 shares against 25,62,061 shares available.

The IPO will close for subscription at 5 PM today, and bidders can apply in lots, with one lot consisting of 73 shares. Share allotment is expected to be finalized on Thursday, October 24, and successful applicants can expect shares to be credited to their demat accounts on Friday, October 25. The stock is anticipated to debut on the BSE and NSE on Monday, October 28.

Deepak Builders & Engineers India Limited specializes in the construction of various projects, including administrative, institutional, and industrial buildings, hospitals, stadiums, and residential complexes. Experts and brokerage firms are optimistic about the IPO, citing the company’s growth potential in a rapidly expanding sector.

The 10 Most Shocking Facts About Deepak Builders IPO Brokerage firm SMIFS Limited recommends a “subscribe” rating for the issue, highlighting the company’s potential for significant growth in India’s construction industry, which is projected to reach $1.4 trillion by 2025. SMIFS notes that the company’s proactive plan to reduce debt by ₹300 million will improve its financial stability, lower interest expenses, and positively impact profitability.

“This strategic focus on maintaining a strong balance sheet and a diversified project portfolio emphasizes Deepak Builders & Engineers’ commitment to sustainable growth. We recommend subscribing to this issue as a solid long-term investment due to the company’s robust order book and improving margins, which offer potential for appreciation, despite the company being relatively small compared to its peers,” stated SMIFS.

Akriti Mehrotra, a research analyst at StoxBox, also advises subscribing to the issue from a medium- to long-term investment perspective. “The current issue is priced at a P/E ratio of 12.1 times based on FY24 earnings, which is relatively lower than its peers. Deepak Builders is well-positioned for future growth with a proven track record of 76 completed projects and accreditation as a Class I (Super) Contractor,” added Mehrotra.

The 10 Most Shocking Facts About Deepak Builders IPO Deepak Builders & Engineers India has seen strong interest from investors for its initial public offering (IPO), which opened for public subscription yesterday, October 21, 2024. As of around 12:12 PM on Tuesday, the company received bids for 6,43,11,321 shares, resulting in an oversubscription of 7.17 times compared to the 89,67,061 shares offered, according to NSE data.

Retail Individual Investors (RIIs) showed the most enthusiasm, subscribing 10.40 times, followed by Non-Institutional Investors (NIIs) at 8.50 times, and Qualified Institutional Buyers (QIBs) at 0.52 times. Additionally, the grey market premium (GMP) for Deepak Builders shares remains high, indicating positive market sentiment. Sources monitoring the grey market report that shares are trading at a premium of ₹61 over the upper end of the IPO price of ₹203, resulting in a GMP of 30.05% on Tuesday.

The 10 Most Shocking Facts About Deepak Builders IPO Through this public issue, Deepak Builders aims to raise ₹260.04 crore by offering a fresh issue of 10.7 million shares and an offer for sale (OFS) of 2.11 million shares, priced at ₹10 each. The price band for the IPO is set at ₹192-203, with a lot size of 73 shares. Investors can bid for a minimum of 73 shares and in multiples thereof.

The subscription window for the Deepak Builders IPO will close on Wednesday, October 23, 2024. Following the closure, the allotment basis for the company’s shares is expected to be finalized on Thursday, October 24, 2024. The shares are anticipated to debut on the BSE and NSE on Monday, October 28, 2024.