Deepak Builders & Engineers India IPO

About Deepak Builders & Engineers India Limited IPO

Incorporated in 2017, Deepak Builders and Engineers India Limited is an integrated engineering and construction company. It encompasses two business verticals - construction projects and infrastructure projects. 

Under construction projects, it is involved in the execution and construction of administrative & institutional buildings, hospitals and medical colleges, industrial buildings, historical memorial complexes, stadiums and sports complexes. On the other hand, it undertakes specialised structural work such as flyovers, rail under bridges, rail over bridges, approach roads and development and redevelopment of railway stations under its infrastructure projects.

It is present across four states and 2 union territories in India, namely - Punjab, Haryana, Rajasthan, Uttarakhand, Chandigarh and the National Capital Territory of Delhi. Recently, it was awarded its first contract for the construction of plant building by Indian Oil Corporation Limited in Panipat, Haryana, with a contract value amounting to ₹532 crore.

Since acquiring business from the erstwhile firm, the company has completed 17 projects, including the construction of Jang-E-Azadi Memorial in Jalandhar, the development of Karuna Sagar Maharishi Valmiki Tirath Asthaan in Amritsar, the construction of the Geriatrics Block in AIIMS Campus, New Delhi, and the construction of a super speciality block at Government Medical College, Patiala. 

Currently, it has 12 ongoing projects totalling an order book of ₹1,380 crore as of 30 June 2024. 

For backward integration purposes, the company set up ready-mix concrete (RMC) plants at different locations. It helps with the timely execution of projects and reduces the cost of procurement for construction requirements like steel, cement, sand, and aggregates.

Between FY22 and FY24, it saw a CAGR rise of 12% in its revenue from operations and 50% in its profit. Moreover, India’s construction industry is expected to reach $1.4 trillion by 2025, accounting for 8% % to 10% of the country's GDP. This rapid growth in the construction industry will bring new order-win opportunities, which could indirectly benefit the company. 

And now, Deepak Builders and Engineers India Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹260.04 crore, comprising fresh issue, aggregating to ₹217.21 crore, and an offer for sale, aggregating to ₹42.83 crore. The money raised from the fresh issue will be utilised to repay borrowings, working capital requirements and general corporate purposes. Its shares will be listed on the NSE and BSE.

Here are key details about the Deepak Builders and Engineers India IPO:

Financial snapshot

Deepak Builders & Engineers India IPO Analysis

Strengths and Opportunities

1. Decent order book with a marquee client base consisting of government, semi-government and government-controlled entities.
2. The company continuously focused on equipment ownership. As of 30 June 2024, it owned and maintained 398 major equipment and machines, including a concrete mixer, boom pump, transit mixer, JCBs, roller, mobile tower crane, and containers. 
3. Strong financial performance with EBITDA margins of 12%, 12%, and 22% in FY22, FY23, and FY24, respectively.
4. The workforce consists of 632 full-time employees as of 30 June 2024. 
5. Major clients include PWD Punjab, PWD Haryana, PWD Uttarakhand, WAPCOS, NPCCL, HSCC, IOCL, Greater Mohali Area Development Authority, Punjab, Ludhiana Smart City Limited, Punjab Cricket Association and Punjab Heritage and Tourism Promotion Board.
6. Experience in executing projects with varying degrees of complexities, such as design engineering and construction of 3D Domes.

Risks and threats

1. Any adverse changes in government policies can adversely affect its business, as 92% of its revenue from operations comes from projects for government entities as of FY24.
2. Even though it has recently experienced growth in its EBITDA and PAT margin, they have historically been below 12% and 5%, respectively. 
3. Has sustained negative cash flows from operating activities in the past, amassing to ₹26.8 crore in FY24. 
4. Construction work is subject to seasonal variations and may not be able to accurately forecast its project schedule.
5. Business is working capital intensive with long implementation periods and has total outstanding borrowings of ₹463 crore as of 30 June 2024. 
6. Its credit rating was downgraded in FY21.
7. Operates in the construction industry with low entry barriers and high competition. 

Deepak Builders & Engineers India IPO Details

Deepak Builders & Engineers India IPO Date

According to the offer document filed by the company with the SEBI, the Deepak Builders and Engineers India IPO’s opening date – in other words, the Deepak Builders and Engineers India IPO launch date – will be 21st October 2024. The Deepak Builders and Engineers India IPO closing date is 23rd October 2024. After this, investors will be updated about the allotment status on 24th October 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 25th October 2024. The Deepak Builders and Engineers India IPO listing date is 28th October 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

Deepak Builders & Engineers India IPO Price Band

The IPO is a fresh issue and an offer for sale. The Deepak Builders and Engineers India IPO price band has been set between ₹192 and ₹203 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Deepak Builders and Engineers India IPO listing price will be determined on 28th October 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Deepak Builders & Engineers India IPO Lot Size

The Deepak Builders and Engineers India IPO details have been declared. The Deepak Builders and Engineers India IPO lot size is set at 73 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Deepak Builders and Engineers India IPO issue size is approx ₹260 crore. 

How to pre-apply for the Deepak Builders & Engineers India IPO?

You can pre-apply for the Deepak Builders & Engineers India 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: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Deepak Builders & Engineers India IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Deepak Builders & Engineers India IPO?

If you are interested in this investment opportunity but unsure how to apply for the Deepak Builders & Engineers India 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 Deepak Builders & Engineers India IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Deepak Builders & Engineers India IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Deepak Builders & Engineers India 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 Deepak Builders & Engineers India IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Deepak Builders & Engineers India IPO allotment status will be mentioned

Check Allotment Status

How to open demat account with Upstox?

To apply for the Deepak Builders & Engineers India 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:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. 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