Desco Infratech, a prominent player in India's infrastructure development sector, has launched its Initial Public Offering (IPO) on March 24, 2025, with the subscription window open until March 26, 2025. The IPO, valued at ₹30.75 crores, is a Book Built Issue, consisting entirely of a fresh issue of 20.50 lakh shares. The shares are expected to be listed on the BSE SME on April 01, 2025.

IPO Price Band, Market Capitalization, and Investment Details

• Price Band: ₹147 - ₹150 per equity share.

• Market Capitalization at Upper Band: ₹115.14 crores.

• Lot Size: 1,000 shares per lot.

• Minimum Investment:

  • Retail Investors: ₹1,50,000 (1 lot)

  • HNIs: ₹3,00,000 (2 lots)

IPO Management and Market Makers

• Book Running Lead Manager: Smart Horizon Capital Advisors Private Limited

• Registrar: BIGSHARE SERVICES PRIVATE LIMITED

• Market Maker: Rikhav Securities Limited

Live Subscription Status and Grey Market Premium (GMP) Trends

As of 12:00 PM on March 24, 2025, the IPO has been subscribed 0.66 times on the first day. Investors can check the Desco Infratech IPO Live Subscription Status at BSE SME.

Grey Market Premium (GMP) Update

• The Desco Infratech IPO GMP is currently at ₹0, indicating no premium in the unofficial market.

• No real trading is being observed in the grey market.

• GMP figures are purely for informational purposes and do not guarantee listing gains.

Anchor Investors and Fund Allocation

Desco Infratech has raised ₹8.65 crores from anchor investors by allocating 5,77,000 equity shares at ₹150 per share.

IPO Allotment Date & How to Check Status

The IPO allotment date is March 27, 2025. Investors can check the allotment status through the registrar’s website by following these steps:

1. Navigate to the IPO allotment status page.

2. Select Desco Infratech IPO from the dropdown list.

3. Enter Application Number, PAN, or DP Client ID.

4. Submit details to view the allotment status.

Objectives of Desco Infratech IPO

The net proceeds from the IPO will be utilized for:

1. Setting up a corporate office in Surat, Gujarat (₹1.04 crores).

2. Purchasing machinery for operations (₹1.68 crores).

3. Funding working capital requirements (₹18 crores).

4. General corporate purposes.

Financial Performance of Desco Infratech

Revenue and Profit Trends

• Revenue from operations:

  • Sep 30, 2024: ₹2,274.50 lakh

  • FY 2024: ₹2,949.47 lakh

  • FY 2023: ₹2,928.21 lakh

  • FY 2022: ₹1,991.51 lakh

• Profit after tax (PAT):

  • Sep 30, 2024: ₹338.07 lakh

  • FY 2024: ₹345.80 lakh

  • FY 2023: ₹122.72 lakh

  • FY 2022: ₹82.51 lakh

Key Financial Ratios & Valuation

• Pre-Issue EPS: ₹6.95 | Post-Issue EPS: ₹4.50

• Pre-Issue P/E Ratio: 21.58x | Post-Issue P/E Ratio: 33.30x

• Industry P/E Ratio: 13x

• ROCE (FY24): 39.52% | ROE (FY24): 40.61% | RoNW: 28.83%

• Annualized EPS (Latest): ₹12.06 | P/E Ratio: 12.43x

Should You Invest in Desco Infratech IPO?

Given the high valuation and zero GMP, the IPO appears to be fully priced. Investors looking for listing gains may find better opportunities elsewhere. However, those seeking long-term investment in infrastructure stocks may consider fundamentals before investing.

Conclusion

Desco Infratech IPO presents an opportunity for investors in the infrastructure sector. With strong financials but high valuation, investors should assess their risk appetite before applying.

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