DEE Development Engineers IPO listing: Shares list at 67% premium on NSE

Shares of DEE Development Engineers made a strong debut on stock exchanges on Wednesday, June 26. The stock listed at a premium of 66.9% on the NSE at ₹339 apiece. On the BSE, it gained 60% to ₹325.

The ₹418-crore issue received a robust response from investors with 99.56 times subscription during the bidding period from June 19 to June 21. The qualified institutional buyers (QIBs) brought 201.91 times the portion set aside for them.

The non-institutional investors (NIIs) subscribed 114 times the allotted quota, while retail investors booked 23.42 times the part reserved for them.

The public issue, which had set a price band of ₹193-₹203 per share, was a mix of fresh issue of ₹325 crore and an OFS (offer for sale) component of shares worth ₹93.01 crore.

DEE Development Engineers, also called DEE Piping Systems, will use the IPO proceeds to repay debt amounting to ₹175 crore, meet a working capital requirement worth ₹75 crore, and for general corporate purposes.

About DEE Development Engineers

DEE Development Engineers provides piping solutions such as piping systems, fittings, spools, pressure vessels, industrial stacks, bends, and modular skids. It also provides accessories, including heaters, coils, and customised components, along with engineering and pre-fabrication services.

The company's products are sold in domestic and international markets, including the US, Japan, Europe, the Middle East, China, and Canada.

Its clients include Reliance Industries, JGC Corporation, MAN Energy Solutions SE, Thermax Babcock & Wilcox Energy Solutions, Mitsubishi Heavy Industries and HPCL–Mittal Energy.

DEE Piping Systems had reported revenue of ₹595 crore in the financial year 2022-23, up from ₹495 crore in the previous fiscal year. Its net profit increased 57.5% year-on-year to ₹12.9 crore in FY23.

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