Deepak Builders & Engineers India is an integrated engineering and construction company specializing in the execution and construction of a variety of projects. This includes administrative and institutional buildings, hospitals, medical colleges, industrial buildings, and various other development activities such as flyovers, rail under bridges, and the development of railway stations. The company is focused on assisting and scaling large-scale projects in both the government and private sector.

Deepak Builders & Engineers is launching 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 for the Deepak Builders & Engineers IPO opens on October 21, 2024, and closes on October 23, 2024. The allotment is expected to be finalized on or about Thursday, October 24, 2024, with shares set to list on both the BSE and SME on or about Monday, October 28, 2024.

Pricing and Market Capitalization

The share price band for the Deepak Builders & Engineers IPO is set at ₹192 to ₹203 per equity share. The minimum lot size is 73 shares, requiring retail investors to make a minimum investment of ₹14,819. For High-Net-Worth Individuals (HNIs), the minimum investment is 14 lots (1,022 shares), totaling ₹2,07,466.

IPO Management

Fedex Securities Private Limited serves as the book-running lead manager, while Kfin Technologies Limited acts as the registrar for the issue.

Grey Market Premium and Subscription Status

As of 11:51 AM on October 23, 2024, the Grey Market Premium (GMP) for the Deepak Builders & Engineers India Limited IPO is expected to be ₹42, suggesting potential for listing gains. It is important to note that real trading does not occur based on the GMP, which depends on demand and supply in the unregulated market.

The live subscription status shows that the Deepak Builders & Engineers IPO is subscribed 18.46 times on its final day, indicating strong interest from investors.

Allotment Date and How to Check Status

The allotment date for the Deepak Builders & Engineers IPO is set for October 24, 2024. Investors can check their allotment status online by following these steps:

Navigate to the IPO allotment status page.

Select Deepak Builders & Engineers India Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

By following these steps, investors can quickly determine their allotment status and proceed with their investments.

Objectives of the IPO

The proceeds from the fresh issue of the Deepak Builders & Engineers IPO will be utilized for the following objectives:

₹300.00 million for repayment/prepayment of certain borrowings availed by the company.

₹1,119.56 million for funding working capital requirements.

General corporate purposes.

Financial Performance and IPO Review

Financially, Deepak Builders & Engineers India has shown steady growth, with revenues in Fiscal 2024, Fiscal 2023, and Fiscal 2022 recorded at ₹5,167.42 million, ₹4,354.60 million, and ₹3,649.87 million, respectively. The EBITDA for these periods was ₹1,175.39 million, ₹528.93 million, and ₹438.71 million respectively, with profits after tax of ₹604.10 million, ₹213.95 million, and ₹176.64 million for the same years.

For the Deepak Builders & Engineers IPO, the company is issuing shares at a pre-issue EPS of ₹16.84 and a post-issue EPS of ₹12.96. The pre-issue P/E ratio stands at 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 ROCE for FY24 is 41.72%, and RoE is 39.39%, indicating that the IPO is fairly priced.

The Grey Market Premium (GMP) of Deepak Builders & Engineers India indicates potential listing gains of 20%. Given the company’s financial performance and the valuation of the IPO, we recommend risk-taking investors to apply for the Deepak Builders & Engineers India Limited IPO for potential listing gains, while long-term investors may consider avoiding the IPO for investment purposes.

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