DEE Development Engineers Limited

About DEE Development Engineers Limited  Incorporated in 1988, DEE Development Engineers is an engineering company that provides specialised process piping solutions. It manufactures and supplies piping products such as piping systems, spools, bends, fittings, pressure vessels, industrial stacks, modular skids and accessories including coils, heaters and other customised components. It also offers engineering services, pre-fabrication services, and specialises in handling complex metals.  It operates seven manufacturing facilities - three in Haryana, and 1 each in Gujarat, Rajasthan, Assam and Bangkok, Thailand. Its wholly owned subsidiary, DFIPL, operates a heavy fabrication facility at Anjar, Gujarat. It has a dedicated engineering facility located in Chennai in Tamil Nadu.  The company supplies its products domestically and abroad to countries such as the USA, Europe, Japan, Canada, the Middle East, Nigeria, Vietnam, Singapore, China and Taiwan. It caters to industries such as oil and gas, power (including nuclear), chemicals and other process industries. Some of its customers include JGC Corporation, MAN Energy Solutions SE, Mitsubishi Heavy Industries, Reliance Industries, Thermax Babcock & Wilcox Energy Solutions, and HPCL–Mittal Energy.  It also operates two biomass power generation plants in Abohar and Muktsar, Punjab, and manufactures wind turbine towers and industrial stacks.  Between FY21 and FY23, the company saw a CAGR rise of 6% in its revenue from operations. The global market for process piping systems was valued at $39.2 billion per annum in 2023 and is expected to grow at a CAGR of 4.8% to reach $54.5 billion by 2030. This positive growth perspective is expected to benefit the company.  And now, DEE Development Engineers Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹418.01 crore, comprising fresh issue, aggregating to ₹325 crore, as well as an offer for sale, aggregating to ₹93.01 crore. The money raised from the fresh issue will be utilised to fund working capital requirements, repay borrowings and for general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the DEE Development Engineers Limited IPO:     Company Name  DEE Development Engineers Limited   Company Type  Private    Company Established On  1988   DEE Development Engineers Limited IPO Opening Date  19th June 2024    DEE Development Engineers Limited IPO Closing Date  21st June 2024   DEE Development Engineers Limited IPO Allotment Status  24th June 2024    Credit of Shares to the Demat Account  25th June 2024   DEE Development Engineers Limited IPO Listing Date  26th June 2024    DEE Development Engineers Limited IPO Face Value  ₹10 per share   DEE Development Engineers Limited IPO Lot Size  73 shares    DEE Development Engineers Limited IPO Issue Size  Approx ₹418 crore   DEE Development Engineers Limited IPO to be Listed on  BSE, NSE    DEE Development Engineers Limited IPO Price band  ₹193 – ₹203 per share        Financial snapshot     Particulars  FY21  FY22  FY23  Q3FY24    Revenue  ₹ 495 crore  ₹ 460 crore  ₹ 595 crore  545 crore    Net Profit  ₹ 14.2 crore  ₹ 8.19 crore  ₹ 12.9 crore  14.3 crore              Here’s a quick look at DEE Development Engineers Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Leading player in an industry with significant barriers to entry due to requirement of skilled labor, complex manufacturing technology, high capital investment and robust design and execution capability.  Largest player in the process piping solutions industry in India, in terms of installed capacity.  Long standing customer relationships, which includes companies from Fortune 500 spanning across 8 years to 12 years.  Wide range of product and service offerings having served in 27 countries as of 31 December 2023.  Strong focus on automation with automated equipment such as fully automated robotic welding systems, automatic GMAW welding system, fully CNC heat treatment furnaces (gas and electric), semi-automatic shot blasting and painting machines and in-house non-destructive examination facilities.  Experienced engineering team of 748 personnel working on design, engineering and product development as of 31 March 2024.   Risks and threats   Majority of its net proceeds will be utilised to repay some of its indebtedness amounting to a total of ₹386 crore as of 15 April 2024.  Business is heavily dependent on the oil and gas sector making up 52% of the total revenue from operations in Q3 FY24.  Derives a significant portion of its revenue from its top 10 customers totalling to 66% of its total revenue from operations in Q3 FY24.  Some of its manufacturing facilities like the Palwal facility I, the Bangkok facility and the Anjar Heavy Fabrication facility have less than 50% capacity utilization as of Q3 FY24.  Faces competition from ISGEC Heavy Engineering, L&T Heavy Engineering, Seonghwa Industrial Co., SUNG IL (SIM) Co, US Pipe Fabrication. and McDermott.  Has consistently incurred negative cash flows from investing activities between FY21 and Q3 FY24.  Subsidiaries have incurred losses in the last three years due to the economic disruption caused by the COVID - 19 pandemic.  International operations subject it to various business, economic, political, regulatory and legal risks as 40% of the total revenue            DEE Development Engineers Limited IPO details  |DEE Development Engineers Limited IPO date  According to the offer document filed by the company with the SEBI, the DEE Development Engineers IPO’s opening date – in other words, the DEE Development Engineers IPO launch date – will be 19th June 2024. The DEE Development Engineers IPO closing date is 21st June 2024. After this, investors will be updated about the allotment status on 24th June 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 25th June 2024. The DEE Development Engineers IPO listing date is 26th June 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |DEE Development Engineers Limited IPO Price Band  The IPO is a fresh issue as well as an offer for sale. The DEE Development Engineers IPO price band has been set between ₹193 and ₹203 per share. Interested investors can choose a price within this band to apply for the IPO.  The DEE Development Engineers IPO listing price will be determined on 26th June 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |DEE Development Engineers Limited IPO Lot size  The DEE Development Engineers IPO details have been declared. The DEE Development Engineers IPO lot size is set at 73 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the DEE Development Engineers IPO issue size is approx ₹418 crore.           How to pre-apply for the DEE Development Engineers Limited IPO?  You can pre-apply for the DEE Development Engineers Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘DEE Development Engineers Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the DEE Development Engineers Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the DEE Development Engineers Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the DEE Development Engineers Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘DEE Development Engineers Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the DEE Development Engineers Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the DEE Development Engineers Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your DEE Development Engineers Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the DEE Development Engineers Limited IPO  To apply for the DEE Development Engineers Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the DEE Development Engineers Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the DEE Development Engineers Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.