Deepak Builders & Engineers IPO Overview

Deepak Builders & Engineers IPO is a book-built issue, raising Rs 260.04 crores. The issue comprises a fresh issue of 1.07 crore shares worth Rs 217.21 crores and an offer for sale (OFS) of 0.21 crore shares, totalling Rs 42.83 crores.

The IPO will open for subscription from October 21 to October 23, 2024. The allotment is expected to be finalized on October 24, 2024, and the company is tentatively set to list on the BSE and NSE on October 28, 2024.

The price band for the IPO is set between ₹192 and ₹203 per share. Retail investors can apply for a minimum of 73 shares, which requires a minimum investment of ₹14,819. For sNII investors, the minimum application is 14 lots (1,022 shares), amounting to ₹207,466, while for bNII investors, the minimum is 68 lots (4,964 shares), requiring an investment of ₹1,007,692.

Fedex Securities Pvt Ltd is the book-running  lead manager for the IPO, and Kfin Technologies Limited is the registrar. For detailed information, refer to the Deepak Builders & Engineers IPO Red Herring Prospectus (RHP).

Deepak Builders & Engineers IPO Important dates

Deepak Builders & Engineers IPO opens on October 21, 2024, and closes on October 23, 2024.

IPO Open Date Monday, October 21, 2024
IPO Close Date Wednesday, October 23, 2024
Basis of Allotment Thursday, October 24, 2024
Initiation of Refunds Friday, October 25, 2024
A credit of Shares to Demat Friday, October 25, 2024
Listing Date Monday, October 28, 2024
Cut-off time for UPI mandate confirmation 5 PM on October 23, 2024

Deepak Builders & Engineers IPO Financial Performance

Deepak Builders & Engineers India Limited’s revenue increased by 19% and profit after tax (PAT) rose by 182% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended 30 Jun 2024 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets 641.1 558.75 449.3 322.18
Revenue 106.34 516.74 435.46 364.99
Profit After Tax 14.21 60.41 21.4 17.66
Net Worth 155.81 141.25 89.35 70.34
Reserves and Surplus 138.23 124.22 64.66 48.84
Total Borrowing 153.17 153.04 96.57 79.65
Amount in ₹ Crore

Deepak Builders & Engineers IPO Key Performance Indicator

The market capitalization of Deepak Builders & Engineers IPO is Rs 945.59 Cr.

KPI as of June 30, 2024.

KPI Values
ROE 8.48%
ROCE 8.97%
Debt/Equity 0.91
RoNW 9.57%
P/BV 4.68
PAT Margin (%) 13.52
Pre IPO Post IPO
EPS (Rs)  16.84 12.2
P/E (x)  12.06 16.63

Note:

  • The pre-IPO EPS is calculated based on pre-issue shareholding as of the RHP date and the latest FY earnings as of March 31, 2024, which are available in RHP.
  • The Post-Issue EPS is calculated based on the post-issue shareholding and annualized FY earnings as of June 30, 2024, as available in RHP.

Deepak Builders & Engineers IPO Objectives

The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Repayment/prepayment, in full or part, of certain borrowings availed by the Company;
  • Funding of working capital requirements of the company and
  • General corporate purposes.

Deepak Builders & Engineers IPO Lot Size

Investors can bid for a minimum of 73 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 73 ₹14,819
Retail (Max) 13 949 ₹192,647
S-HNI (Min) 14 1,022 ₹207,466
S-HNI (Max) 67 4,891 ₹992,873
B-HNI (Min) 68 4,964 ₹1,007,692

Deepak Builders & Engineers IPO Details

IPO Date October 21, 2024 to October 23, 2024
Listing Date [.]
Face Value ₹10 per share
Price Band ₹192 to ₹203 per share
Lot Size 73 Shares
Total Issue Size 12,810,000 shares
(aggregating up to ₹260.04 Cr)
Fresh Issue 10,700,000 shares
(aggregating up to ₹217.21 Cr)
Offer for Sale 2,110,000 shares of ₹10
(aggregating up to ₹42.83 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Share holding pre issue 35,880,860
Share holding post issue 46,580,860

Deepak Builders & Engineers IPO Company Overview and Services

Incorporated in September 2017, Deepak Builders & Engineers India Limited is a prominent construction company specializing in a range of projects, including administrative, institutional, and industrial buildings, hospitals, stadiums, and residential complexes.

The company has completed turnkey projects, handling architectural, structural, civil, MEP, firefighting systems, public health services, IT systems, operation theatres, medical gas pipelines, and landscaping.

Deepak Builders operates in three primary business verticals:

  • Construction Projects
  • Infrastructure Projects
  • Sale of Products

The company has completed significant projects across four Indian states—Punjab, Haryana, Rajasthan, and Uttarakhand—and two Union Territories—Chandigarh and the National Capital Territory (NCT) of Delhi.

Currently, the company manages 12 ongoing projects. This includes seven EPC projects and five item rate/percentage rate contracts. Among the ongoing construction projects are four hospitals and medical college developments, one administrative and institutional building, and one industrial building. Additionally, the infrastructure projects involve the redevelopment of railway stations, along with two road and bridge projects focused on rail over bridges.

As of June 30, 2024, the company’s order book stands at Rs 13,803.89 million for FY 2024, Rs 11,126.88 million for FY 2023, Rs 16,578.79 million for FY 2022, and Rs 7,196.32 million for FY 2021.

Deepak Builders has a proven track record in delivering complex projects. Noteworthy accomplishments include 3D Domes at Jang-E-Azadi, Kartarpur, Punjab; the Heritage Walk at Golden Temple Corridor, Amritsar, Punjab; and specialized steel fire ramps at AIIMS, Delhi.

Competitive Strengths

  • Use of advanced technology, efficient processes, and a skilled workforce to ensure high-quality construction projects.
  • Investment in modern construction equipment fleets for timely and quality project execution.
  • An experienced management team leading operations.

As of June 30, 2024, the company employs 632 permanent staff members and 2,129 contract labourers, reinforcing its operational capabilities.

Deepak Builders & Engineers IPO SWOT Analysis

Strengths:

  1. Diverse Project Portfolio: The company operates across various sectors, including hospitals, institutional buildings, industrial structures, and infrastructure projects like railway stations and bridges. This diversification minimizes dependency on any one sector.
  2. Proven Track Record: Deepak Builders has completed multiple high-profile and complex projects, such as the 3D Domes at Jang-E-Azadi in Punjab and fire ramps at AIIMS, Delhi, showcasing their technical expertise.
  3. Strong Order Book: With an order book totalling Rs 13,803.89 million as of June 30, 2024, the company has a healthy pipeline of projects, providing visibility for future revenue.
  4. Experienced Management: The company benefits from a skilled management team with deep expertise in the construction industry, supported by a large workforce.
  5. Modern Technology and Equipment: Investment in advanced construction equipment ensures efficient project delivery, improving overall quality and speed of execution.

Weaknesses:

  1. Limited Geographic Presence: The company primarily operates in four states (Punjab, Haryana, Rajasthan, Uttarakhand) and two Union Territories (Chandigarh and Delhi), limiting its national presence.
  2. High Dependency on Government Projects: A significant portion of the company’s portfolio consists of government projects, making it vulnerable to changes in government policies or delays in payments.
  3. Project Execution Risks: The complexity of large-scale projects and reliance on subcontractors can lead to execution delays or cost overruns, affecting profitability.

Opportunities:

  1. Infrastructure Development Push: With India’s increasing focus on infrastructure development through government initiatives like Smart Cities Mission and AMRUT, there are significant growth opportunities in both urban and rural areas.
  2. Expansion into New Regions: Expanding operations beyond the current geographical boundaries can unlock new markets and diversify the project portfolio further.
  3. Technological Advancements: Adopting new construction technologies like modular construction and green building techniques could improve operational efficiency and open new business avenues.
  4. Private Sector Participation: Increasing participation in private sector projects, such as commercial and industrial construction, could reduce reliance on government contracts.

Threats:

  1. Economic Slowdown: Any slowdown in the Indian economy or reduction in government spending on infrastructure could negatively impact the company’s growth and revenue.
  2. Rising Input Costs: Fluctuating prices of raw materials like steel, cement, and labour can impact profit margins, particularly on fixed-price contracts.
  3. Intense Competition: The construction industry in India is highly competitive, with numerous established players. This could lead to price wars, lower margins, and a fight for market share.
  4. Regulatory Challenges: Stringent regulations, especially related to environmental clearances and land acquisition, can delay project timelines and increase operational costs.

Deepak Builders & Engineers IPO GMP Details

Deepak Builders Engineers IPO last GMP is ₹61, last updated Oct 23rd 2024. With the price band of 203.00, Deepak Builders Engineers IPO’s estimated listing price is ₹264 (cap price + today’s GMP).The expected percentage gain/loss per share is 30.05%.

Stay with us to know the daily price trend of Deepak Builders Engineers IPO GMP with an expected listing price.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
23-10-2024 Close 203.00 ₹61  3400/47600 ₹264 (30.05%) 23-Oct-2024
22-10-2024 203.00 ₹61  3400/47600 ₹264 (30.05%) 22-Oct-2024
21-10-2024 Open 203.00 ₹61   3400/47600 ₹264 (30.05%) 21-Oct-2024
20-10-2024 203.00 ₹60  3300/46200 ₹263 (29.56%) 20-Oct-2024
19-10-2024 203.00 ₹60   3300/46200 ₹263 (29.56%) 19-Oct-2024
18-10-2024 203.00 ₹51   2800/39200 ₹254 (25.12%) 18-Oct-2024
17-10-2024 203.00 ₹32   1800/25200 ₹235 (15.76%) 17-Oct-2024
16-10-2024 203.00 ₹27   1500/21000 ₹230 (13.3%) 16-Oct-2024
15-10-2024 NA ₹11  — ₹11 (%) 15-Oct-2024

What is IPO GMP?

The grey market premium (GMP) reflects the unofficial trading price of an IPO before its listing, offering insights into its potential market performance. A positive GMP indicates that the IPO may yield profits, while a negative GMP suggests a possible discount upon listing. However, it’s essential to recognize that IPO GMP can be highly volatile. Therefore, investors should not make decisions solely based on the GMP but should thoroughly assess all relevant factors before investing.

Deepak Builders & Engineers IPO subscription status

Deepak Builders & Engineers IPO subscribed 12.11 times. The public issue subscribed 16.14 times in the retail category, 1.08 times in QIB, and 17.44 times in the NII category by October 22, 2024 (Day 2).

Investor Category Subscription (times) Shares Offered Shares Bid for Total Amount (Rs Cr.)*
Qualified Institutions 1.08 2,562,061 27,57,210 55.97
Non-Institutional Buyers 17.44 1,921,500 3,35,06,489 680.18
  bNII (bids above ₹10L) 14.34 1,281,000 1,83,74,611 373.00
  sNII (bids below ₹10L) 23.63 640,500 1,51,31,878 307.18
Retail Investors 16.14 4,483,500 7,23,66,287 1,469.04
Employees [.] 0 0 0
Others [.] 0 0 0
Total 12.11 8,967,061 10,86,29,986 2,205.19

Total Application : 938,152 (15.28 times)

Disclaimer: *The total amount is calculated based on the final issue price or the price in the upper price range.

Deepak Builders & Engineers IPO (Day-wise) Subscription Details (times)

Date QIB NII Retail Total
Day 1
October 21, 2024		 0.52 4.28 6.22 4.18
Day 2
October 22, 2024		 1.08 17.44 16.14 12.11

Deepak Builders & Engineers IPO  Allotment status

The allotment status of Deepak Builders & Engineers IPO is expected to be available on October 24, 2024.

Deepak Builders & Engineers IPO allotment status is not available at this time. Deepak Builders & Engineers IPO – The allotment status will be available once the basis of the allotment is finalized. Please revisit us to check the latest updates for Deepak Builders & Engineers India Limited IPO allotment status.

To check Deepak Builders & Engineers IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Kfin Technologies Limited either by phone or email. Investors can call on 04067162222, 04079611000 or send an email with all relevant details to deepakbuilders.ipo@kfintech.com.

Deepak Builders & Engineers Contact Details

Deepak Builders & Engineers India Limited
Ahluwalia Chambers, 1st Floor
Plot No. 16 &17, Local Shopping Centre
Madangir, near Pushpa Bhawan, South Delhi- 110062
Phone: +91 9875909242
Email: investor@deepakbuilders.co.in
Website: https://www.deepakbuilders.co.in/

Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.

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