Deepak Builders & Engineers India Limited will launch its initial public offering (IPO) next week. The IPO, which begins on Monday, October 21, 2024, will shut for subscriptions on Wednesday, October 23, 2024. With a price band of Rs 192 to Rs 203 per share, this IPO has sparked significant interest, particularly given grey market tendencies predicting a premium listing.
Deepak Builders & Engineers Limited is planning an IPO with a new issue of 1,07,00,000 shares worth INR 217.21 crores and an offer to sell existing 21,10,000 shares for INR 42.83 crores. The company intends to repay outstanding borrowings, cover working capital requirements, and pursue general corporate goals.
Deepak Builders & Engineers India Ltd. IPO Review
The firm is an EPC contractor that specializes in a variety of construction projects. For the periods under consideration, the company’s top and bottom lines both increased. As of June 30, 2024, it had an order book worth Rs. 1380 crore or more, with railways accounting for the majority of that. The rapid increase in margins from FY24 raises concerns.Well-informed investors may keep moderate funds for the long term.
Deepak Builders & Engineers IPO GMP
According to market sources, Deepak Builders Engineers’ GMP was ₹32 about 11 AM on Friday. Deepak Builders Engineers shares are expected to launch at ₹235, representing a 15.76% premium over the issue price, based on the upper price band of ₹203 and the latest GMP.
About the Company – Deepak Builders & Engineers India Ltd.
Deepak Builders & Engineers is an integrated engineering and construction firm that specializes in the design and construction of administrative and institutional buildings, hospitals and medical colleges, industrial buildings, historical memorial complexes, stadium and sports complexes, residential complexes, and a variety of developmental and other construction activities (“Construction Projects”).
While the company’s primary focus and strength are in construction projects, it has expanded into specialized structural work such as flyovers, rail under bridges, rail over bridges, approach roads, and railway station development and redevelopment (“Infrastructure Projects”).
