Desco Infratech IPO subscribed 2.4 times on Day 1: Check issue size, price band & more

The initial public offering (IPO) of infrastructure developer Desco Infratech was fully subscribed within hours of launch, on Monday, led by the retail and non-institutional investors (NIIs).

The subscription window for the BSE SME IPO will close on March 26, 2025. The company aims to raise ₹30.75 crore through its book-building issue.

The IPO received applications for 33.34 lakh shares against 13.66 lakh shares on offer, leading to a subscription of 2.43 times, the BSE data at the end of bidding at 5 pm showed.

The demand for the IPO was led by the NIIs, as the category was subscribed 3.44 times. The NIIs applied for 10.14 lakh shares against 2.94 lakh shares on offer. The retail investors submitted bids for 19.3 lakh shares against 6.86 lakh shares set aside for the category. The retail portion was booked 2.81 times. The Qualified Institutional Buyers (QIBs) booked 98% of their allocated portion. The QIBs applied for 3.8 lakh shares against 3.86 lakh shares set aside for the group.

The company in the pre-bid round, on Friday, raised ₹8.66 crore from anchor investors. The company allotted 5,77,000 equity shares at a price of ₹150 per share to three fund schemes Chanakya Opportunities Fund, Beacon Stone Capital VCC and Nova Global Opportunities Fund PCC.

Desco Infratech IPO details

The ₹30.75 crore public offer of Desco Infratech Ltd comprises only a fresh issue of 20.5 lakh shares. The company has set the price band at ₹147 to ₹150 per share for the IPO. The minimum lot size is 1,000 shares, requiring a minimum investment of ₹1,50,000 at the upper price band from retail investors.

Of the total issue size, the company has set aside 1,07,000 shares for the market maker Rikhav Securities Ltd.

Desco Infratech IPO key dates

• Desco Infratech IPO is open for booking from March 24 to March 26.
• The company will finalise the share allotment status on Thursday, March 27.
• Desco Infratech is likely to credit shares to Demat accounts on Friday, March 28. The company is also expected to process the refunds on the same day.
• The tentative date for Desco Infratech IPO listing has been fixed as April 1.

Desco Infratech IPO objective

Desco Infratech provides infrastructure and maintenance services to city gas distribution, renewable energy, water, and power sector players in India. The company offers services such as pipeline laying, installation and commissioning for Piped Natural Gas (PNG). It also sets up water infrastructure and robust power distribution networks.

In the power division, the company focuses on the installation, connectivity, commissioning, and erection of Low Tension (LT) and High Tension (HT) cables.

In the water segment, it offers infrastructure services such as designing and constructing water distribution networks, open wells, sump wells, overhead tanks and well systems.

According to its RHP, the company will utilise IPO proceeds for setting up a corporate office in Surat, working capital requirements and purchase of machines and equipment.

The company has proposed to use ₹1.04 crore to fund capital expenditure for its corporate office in Surat. It will use ₹1.68 crore for capital expenditure towards the purchase of machinery. A sum of ₹18 crore will be will be used for funding working capital requirements.

Desco Infratech: Key financials

The company has reported revenue of ₹22.63 crore for the April- September period of FY 2024-25. Its profit after tax stood at ₹3.38 crore during the same period.

The company’s revenue marginally increased to ₹29.49 crore in FY24 against ₹29.28 crore in FY23. Its net profit increased multifold to ₹3.46 crore in FY 2024-25 compared to ₹1.23 crore.