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DEE Development Engineers IPO opens June 19: Aiming to raise Rs 418.01 crore with 30.47% revenue growth and Rs 1401.69 crore market cap


DEE Development Engineers, an established engineering company specializing in process piping solutions for oil and gas, power, chemicals, and other process industries, is set to launch its Initial Public Offering (IPO) on Wednesday, June 19. Investors can bid for the IPO until Friday, June 21. The shares are priced in a fixed range of Rs 193-203 each, with a minimum application of 73 equity shares and multiples thereafter.

Founded in 1988, DEE Development Engineers offers comprehensive engineering, procurement, and manufacturing services. The IPO includes a fresh share sale of up to Rs 325 crore and an offer-for-sale (OFS) of up to 45.82 lakh equity shares by promoter Krishan Lalit Bansal, amounting to Rs 93.01 crore at the upper price band. The company aims to raise a total of Rs 418.01 crore from this initial stake sale.

Purpose of IPO proceeds

  • Working capital: Funding the company’s working capital requirements.
  • Debt repayment: Prepayment or repayment of certain outstanding borrowings.
  • Corporate purposes: General corporate purposes.
  • OFS proceeds: The net proceeds from the OFS will go to the selling shareholder.

Financial performance

For the nine months ending December 31, 2023, DEE Development Engineers reported a net profit of Rs 14.34 crore and a revenue of Rs 380.23 crore. For the financial year 2022-23, the company posted a net profit of Rs 12.97 crore with a revenue of Rs 614.32 crore. The company’s revenue increased by 30.47%, and profit after tax (PAT) rose by 58.25% between FY23 and FY22.

IPO reservation and listing

  • Employee reservation: Shares worth Rs 1 crore are reserved for eligible employees, with a discount of Rs 19 per share.
  • QIBs: 50% of the issue is reserved for Qualified Institutional Buyers (QIBs).
  • Non-Institutional investors: 15% of the net offer is reserved.
  • Retail investors: 35% of the net offer is allocated to retail investors.

SBI capital markets and Equirus capital are the lead managers for the DEE Piping Systems IPO, with Link Intime India as the registrar. The shares are set to be listed on both BSE and NSE, with a tentative listing date of June 26.

The DEE Piping Systems IPO GMP is Rs 40 with a market capitalization of the IPO is Rs 1401.69 crore.

This IPO presents a promising opportunity for investors looking to invest in a company with a strong growth trajectory and robust financial performance.

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