Deepak Builders & Engineers India is a comprehensive engineering and construction company, renowned for its expertise in executing a wide range of projects. Founded to specialize in the construction of administrative buildings, hospitals, medical colleges, industrial buildings, and various infrastructure projects, the company has built a solid reputation for quality and reliability over the years. They are adept at managing large-scale projects across both the government and private sectors.

The upcoming Initial Public Offering (IPO) for Deepak Builders & Engineers is a Book Built Issue amounting to ₹260.04 crores, which includes a fresh issue of 107 lakh shares worth ₹217.21 crores and an offer for sale of 21.1 lakh shares totaling ₹42.83 crores. The subscription period opens on October 21, 2024, and closes on October 23, 2024. Allotment of shares is expected to be finalized on or around October 24, 2024, with shares set to list on the BSE and SME, targeting a tentative listing date around October 28, 2024.

The share price band for the Deepak Builders IPO is fixed between ₹192 and ₹203 per equity share, with a minimum lot size of 73 shares. Retail investors are required to make a minimum investment of ₹14,819, while High-Net-Worth Individuals (HNIs) must invest in 14 lots (1,022 shares), totaling ₹2,07,466.

The IPO is managed by Fedex Securities Private Limited as the book-running lead manager, while Kfin Technologies Limited serves as the registrar for the issue.

Deepak Builders & Engineers India Limited IPO Grey Market Premium (GMP)

As of today, the Grey Market Premium (GMP) for Deepak Builders is estimated at ₹42, reflecting positive sentiment around the company's financial performance. However, potential investors should note that GMP is based on informal trading and serves primarily as a guideline.

Deepak Builders & Engineers India Limited IPO Live Subscription Status Today

As of 5:55 PM on October 23, 2024, the Deepak Builders IPO has been subscribed 41.54 times on its final day of the subscription period. Investors can check the live subscription status on the BSE website.

Deepak Builders & Engineers India Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online

The allotment date for the Deepak Builders IPO is set for October 24, 2024. To check your allotment status, follow these steps:

• Navigate to the IPO allotment status page.
• Select Deepak Builders & Engineers India Limited IPO from the dropdown list of IPOs.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to check your allotment status.

These steps will enable investors to easily verify their allotment status and plan their investment strategies accordingly.

Objectives of Deepak Builders & Engineers India Limited IPO

The proceeds from the fresh issue will be allocated towards:

1. ₹300 million for the repayment/prepayment of certain borrowings availed by the company.
2. ₹1,119.56 million to fund the company's working capital requirements.
3. General corporate purposes.

Deepak Builders & Engineers India IPO Review

The founder of Deepak Builders, Deepak Kumar Singal, established the partnership firm on April 1, 1990, and has been a pivotal figure in the construction industry for over 30 years. He has overseen the completion of more than 60 construction and infrastructure projects, showcasing his expertise in managing large-scale endeavors.

Financially, the company's revenues have shown consistent growth, with figures for Fiscal 2024, 2023, and 2022 reported as ₹5,167.42 million, ₹4,354.60 million, and ₹3,649.87 million, respectively. The EBITDA figures for these periods were ₹1,175.39 million, ₹528.93 million, and ₹438.71 million. Additionally, the profit after tax increased to ₹604.10 million in Fiscal 2024, up from ₹213.95 million in 2023 and ₹176.64 million in 2022.

For the IPO, Deepak Builders is offering shares at a pre-issue EPS of ₹16.84 and a post-issue EPS of ₹12.96. The pre-issue P/E ratio is 12.05x, while the post-issue P/E ratio is 15.66x, compared to an industry P/E ratio of 25.03x. The company's Return on Capital Employed (ROCE) for FY24 stands at 41.72%, and its Return on Equity (RoE) is 39.39%, indicating that the IPO is fairly priced.

With a Grey Market Premium (GMP) suggesting potential listing gains of 20%, we recommend risk-tolerant investors to apply for the Deepak Builders & Engineers India Limited IPO for potential short-term gains. However, we advise long-term investors to approach this IPO with caution and possibly avoid it for long-term investment purposes.

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