Deepak Builders & Engineers IPO Set To Open For Subscription On October 21; Check Lastest GMP & More

Deepak Builders & Engineers India Limited is all set to hit the primary market with its initial public offering (IPO) next week. The IPO, opening on Monday, October 21, 2024, will close for subscription on Wednesday, October 23, 2024. With a price band set between Rs 192 and Rs 203 per share, this IPO has attracted considerable attention, especially with grey market trends indicating a premium listing.

Grey Market Performance (GMP)

According to market insiders, Deepak Builders & Engineers' grey market premium (GMP) stood at Rs 32 as of Friday morning. This signals a positive market sentiment, as shares are expected to list at Rs 235, reflecting a 15.76% premium over the upper price band of Rs 203.

Deepak Builders & Engineers IPO

The IPO comprises a fresh issue of 1.07 crore shares and an Offer for Sale (OFS) of 21 lakh shares, bringing the total size of the issue to 1.28 crore shares. The Rs 260.04 crore mainboard IPO aims to raise around Rs 217.21 crore through the fresh issue alone, while the OFS allows existing shareholders to divest their holdings.

Retail investors can participate in the IPO by purchasing a minimum of one lot, which consists of 73 shares. At the upper end of the price band (Rs 203), the minimum investment required for a lot amounts to Rs 14,819. For retail investors, a maximum of 13 lots can be purchased, capping their total investment at Rs 1,92,647.

In terms of allocation, 35% of the issue is reserved for retail investors, 15% for non-institutional investors (NIIs), and the remaining 50% for qualified institutional buyers (QIBs). Fedex Securities Pvt Ltd serves as the book-running lead manager for this IPO, with KFin Technologies Limited as the registrar.

Important Dates and Allotment Process

Following the close of the subscription period on October 23, 2024, the share allotment will be finalized on Thursday, October 24, 2024. Investors who successfully secure allotments can expect the shares to be credited to their demat accounts by Friday, October 25, 2024. Those who do not receive shares will be refunded on the same day.

Deepak Builders & Engineers is expected to debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Monday, October 28, 2024.

Use of IPO Proceeds

The company intends to use the Rs 217.21 crore raised through the fresh issue to pay off certain borrowings and meet its working capital requirements. A portion of the proceeds will also be allocated for general corporate purposes, ensuring that Deepak Builders & Engineers is well-capitalized to support its growth initiatives.

About Deepak Builders & Engineers

Deepak Builders & Engineers India Limited has earned a solid reputation in the construction sector. The company specializes in constructing administrative, institutional, and industrial buildings, hospitals, stadiums, residential complexes, and other infrastructure projects.

The financial performance of Deepak Builders & Engineers reflects its robust business model. The company's profit after tax has shown consistent growth, with figures standing at Rs 17.66 crore in FY22, Rs 21.4 crore in FY23, and Rs 60.41 crore in FY24. Similarly, its revenue has grown steadily from Rs 364.99 crore in FY22 to Rs 516.74 crore in FY24.

This growth trajectory has made Deepak Builders & Engineers an attractive proposition for investors. With its proven track record of delivering large-scale construction projects, the company is well-positioned to capitalize on the increasing demand for infrastructure development in India.

Deepak Builders & Engineers' IPO offers investors an opportunity to participate in the growth of a well-established company with a presence in India's construction sector. The company's robust financial performance, coupled with the positive grey market premium, signals that the IPO could see strong demand across all investor categories.