IPO Details
Bidding Dates
21 Oct '24 - 23 Oct '24
Minimum Investment
₹14,819 / 1 Lot (73 Shares)
Price Range
₹192 - ₹203
Maximum Investment
₹192,647 / 13 Lot (949 Shares)
Retail Discount
To be announced
Issue Size
₹260.04 Cr
Investor category and sub category
Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | Eligible employees |IPO Dates
Important dates with respect to IPO allotment and listing
Opening Date
Oct 21, 2024
Closing Date
Oct 23, 2024
Basis of Allotment
Oct 24, 2024
Initiation of Refunds
Oct 25, 2024
Listing Date
Oct 28, 2024
About Deepak Builders & Engineers IPO
Deepak Builders & Engineers Limited is launching its IPO with a book-built issue size of ₹260.04 crores. The IPO comprises a fresh issue of 1.07 crore shares worth ₹217.21 crores and an offer for sale of 0.21 crore shares valued at ₹42.83 crores. The IPO will open for subscription from October 21 to October 23, 2024.
The allotment is expected to be finalised on October 24, 2024, with a tentative listing date of October 28, 2024, on BSE and NSE. The price band for the IPO is set at ₹192 to ₹203 per share, with a minimum application lot size of 73 shares, requiring a retail investment of ₹14,819.
For sNII investors, the minimum investment is ₹207,466 for 1,022 shares (14 lots), and for bNII, it is ₹1,007,692 for 4,964 shares (68 lots). Fedex Securities Pvt Ltd is the lead manager, and KFin Technologies Limited is the issue registrar.
Industry Outlook:
- India's construction industry is projected to reach USD 1.4 trillion by 2025, contributing 8%-10% to the GDP, with major growth driven by infrastructure initiatives.
- Residential construction, accounting for 60% of the industry, is booming due to urbanisation and government programs like Pradhan Mantri Awas Yojana (PMAY), boosting housing demand.
Deepak Builders & Engineers IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Repayment/prepayment, in full or part, of certain borrowings availed by the company.
- Funding of working capital requirements of the company.
- General corporate purposes.
About Deepak Builders & Engineers Limited
Incorporated in September 2017, Deepak Builders & Engineers India Limited is a construction company specialising in administrative, institutional, and industrial buildings, hospitals, stadiums, residential complexes, and other key construction activities. The company has successfully executed turnkey projects involving architectural, structural, civil, MEP, firefighting systems, public health services, IT systems, operation theatres, medical gas pipelines, and landscaping.
Their business is categorized into three verticals: Construction Projects, Infrastructure Projects, and Sale of Products. Operating across four Indian states—Punjab, Haryana, Rajasthan, and Uttarakhand—and two Union Territories, Chandigarh and Delhi, the company currently manages 12 projects, including EPC contracts and item rate contracts.
As of June 2024, Deepak Builders' order book stands at ₹13,803.89 million, with previous fiscal years showing strong figures. Notable projects include the 3D Domes at Jang-E-Azadi, Kartarpur, and the Heritage Walk at Golden Temple Corridor, Amritsar. The company is recognised for handling complex projects with precision and innovation.
How to Check the Allotment Status of the Deepak Builders & Engineers Finance IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Deepak Builders & Engineers IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Deepak Builders & Engineers IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Deepak Builders & Engineers IPO
- Registered office: Ahluwalia Chambers, 1st Floor, Plot No. 16 &17, Local Shopping Centre, Madangir, near Pushpa Bhawan, South Delhi, New Delhi – 110 062, India
- Phone: +91 98759 09242
- E-mail: investor@deepakbuilders.co.in
IPO Financials
| Particulars | For the Three Months Ended June 30, 2024 | As of March 31, 2024 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|---|
| Revenue from operations (₹ in millions) | 1,051.08 | 5,114.02 | 4,334.55 | 3,630.52 |
| Restated Profit after tax (PAT) (₹ in millions) | 142.12 | 604.10 | 213.95 | 176.64 |
| Net Worth (₹ in millions) | 1,558.12 | 1,412.52 | 893.47 | 703.38 |
| RoE (%) | 8.48% | 39.39% | 23.06% | 24.72% |
| RoCE (%) | 8.97% | 41.72% | 26.10% | 27.26% |
| Debt Equity Ratio | 0.91 | 1.00 | 1.04 | 1.11 |
| Order Book (₹ in millions) | 13,803.89 | 11,126.88 | 16,578.79 | 7,196.32 |
| Earnings Per Share (₹) | 3.96 | 16.84 | 5.96 | 4.92 |
Know before investing
Strengths
6-
A strong order book with a government client base ensures growth.
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Owns 398 major equipment and machinery as of June 2024.
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Spent ₹100.61 million on machinery in Fiscal 2024.
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Revenue grew from ₹3,630.52 million in Fiscal 2022.
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PAT margin improved to 13.52% by June 2024.
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Experienced management team led by Deepak Kumar Singal.
Risks
6-
Heavy reliance on government projects for 100% of the order book.
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Ongoing legal disputes involve claims totalling ₹375.54 million.
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Business is concentrated in Punjab, with 30.87% of projects being ongoing.
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EBITDA margin fluctuated from 12.20% to 29.92% recently.
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Search operations revealed ₹156.7 million as undisclosed income.
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Large projects increase risks of cost overruns and delays.
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Peer Comparison
| Company Name | CMP (₹) | EPS (Basic) | PE Ratio |
|---|---|---|---|
| Deepak Builders & Engineers India Limited | 16.84 | 16.84 | 52.39 |
| IRCON International Limited | 226.22 | 9.17 | 24.67 |
| Ahluwalia Contracts (India) Limited | 1079.30 | 56.06 | 19.25 |
| PSP Projects Limited | 659.55 | 34.42 | 19.16 |
| ITD Cementation Limited | 590.10 | 15.93 | 37.04 |
Deepak Builders & Engineers India IPO FAQs
Deepak Builders & Engineers’s IPO is a book-built IPO. It will be open from October 21, 2024, to October 23, 2024.
The Basis of Allotment will happen on Thursday, October 24, 2024.
The IPO subscription window will open on October 21, 2024.
The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 73 shares.
The listing date for Deepak Builders & Engineers is Monday, October 28, 2024.
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.
- Multiple Submissions: Use different Demat accounts to make multiple applications.
- Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
- Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
To read Deepak Builders & Engineers’ financial statements, download the IPO’s RHP document.
