Upcoming IPO: Deepak Builders & Engineers IPO opens on October 21; check issue size, price band & more

Deepak Builders and Engineers India Limited IPO subscription will open on Monday, October 21. The engineering and construction company aims to raise ₹260.04 crore through its maiden share sale.

Deepak Builders and Engineers India IPO will be available for bidding till October 23. Ahead of the launch of the mainboard issue the investors interested in participating in the subscription can check important details about the IPO.

Deepak Builders and Engineers IPO: Issue size, lot size and price band

Deepak Builders and Engineers IPO is a book-building issue worth ₹260.04 crore. The public offer comprises a fresh issue of 1.07 crore shares, aggregating to ₹217.21 crore, and an offer-for-sale (OFS) of 21 lakh shares, amounting to ₹42.83 crore.

Deepak Builders and Engineers IPO price band has been set at ₹192 to ₹203 per share. Retail investors interested in applying for the mainboard issue can place bids for a minimum lot size of 73 shares, which aggregates to an investment of ₹14,819.

The minimum lot size for Small Non Institutional Investors (sNII) is 14 lots, or 1,022 shares, which amounts to an investment of ₹2,07,466. The lot size for Big Non Institutional Investors (bNIIs) is 68 lots, or 4,964 shares, amounting to an investment of ₹10,07,692.

Deepak Builders and Engineers has set aside 50% of the net issue size for the Qualified Institutional Buyers category. The company has also reserved 35% of the net issue for retail individual investors and 15% of the net issue for the Non Institutional Investor (NII) category.

Deepak Builders and Engineers IPO subscription, listing dates

Deepak Builders and Engineers IPO subscription will be available for 3 days from October 21 to October 23. Deepak Builders and Engineers IPO share allotment status will be finalised on October 24.

After share allocation, refunds will be initiated for unsuccessful bidders on October 25 and successful bidders will receive shares of Deepak Builders and Engineers in their Demat accounts the same day. Shares of Deepak Builders and Engineers will be listed on the NSE and BSE. The tentative listing date for the mainboard issue is October 28.

Deepak Builders and Engineers: Key financials and competitors

Deepak Builders and Engineers posted a revenue of ₹106.34 crore for the quarter ended June 30, 2024 (Q1FY25). Its profit-after-tax (PAT) stood at ₹14.21 crore. The company’s net worth at the end of the June quarter stood at ₹155.81 crore.

Deepak Builders & Engineers’ revenue in FY24 grew over 18% to ₹516.74 crore against ₹435.46 crore in FY23. The company’s PAT also increased more than 182% to ₹60.41 crore in FY24 compared to ₹21.4 crore in FY23. Deepak Builders and Engineers reported a net worth of ₹141.25 crore in FY24, up over 58% from ₹89.35 crore in the preceding financial year.

Deepak Builders and Engineers India is a construction company specialising in construction activities for administrative, institutional, and industrial buildings, which include hospitals, stadiums and residential complexes. As per the company’s RHP its competitors include IRCON International Limited, Ahluwalia Contracts (India) Limited, PSP Projects Limited and ITD Cementation Limited.

Deepak Builders and Engineers India Limited: Business model

Deepak Builders and Engineers India Limited is an integrated engineering and construction company, which specialises in execution and construction of projects such as administrative and institutional buildings, hospitals and medical colleges and other construction projects. The company also undertakes projects which involve construction of flyovers, rail under bridge, rail over bridges, approach roads and development and redevelopment of railway stations. The company undertakes construction and infrastructure projects in the form of Engineering Procurement Construction (EPC) services on a fixed sum turnkey basis and on an item-rate basis or percentage basis.

Deepak Builders and Engineers: Key strengths

• The company is likely to benefit from trends such as increasing urbanisation and infrastructure development initiatives, providing a strong demand for construction services.
• As per the RHP, the company has the ability to operate across sectors such as commercial, logistics, healthcare and residential showcasing its adaptability to market demands.
• The company has strong relationships with government agencies, architects and other industry stakeholders leveraging competitive advantage in securing new projects.
• The company said in its RHP that it is likely to benefit from having an experienced promoter. Its Chairman cum Managing Director, Deepak Kumar Singal has extensive experience of 30 years and has completed over sixty (60) construction and infrastructure projects.

Deepak Builders and Engineers: Key risks and threats

• The company mentioned in its RHP that its project portfolio has historically been concentrated in Punjab. Any policy changes in the state can adversely affect its business.
• The company said that its ability to access capital at attractive costs depends on its credit ratings and a poor rating may restrict its access to capital.
• According to the company, its ongoing projects are exposed to implementation risks and uncertainties and can be delayed, modified or cancelled for reasons beyond its control.

About Deepak Builders and Engineers India Limited

Deepak Builders and Engineers India Limited, incorporated in September 2017, specialises in construction of administrative, institutional and industrial buildings.

The company has completed construction and infrastructure projects in Punjab, Haryana, Rajasthan and Uttarakhand. It has also successfully delivered projects in Chandigarh and the National Capital Territory of Delhi.