Deepak Builders IPO: All You Need to Know

Deepak Builders & Engineers India Limited is gearing up for its Initial Public Offering (IPO), set to open on October 21, 2024, and close on October 23, 2024. This blog will provide you with all the essential details about the Deepak Builders IPO, including the schedule, subscription details, business overview, financial performance, and more.

Deepak Builders IPO Details

Here’s a summary of the Deepak Builders IPO:

Quotas

• Retail Investors: Not more than 35%
• Qualified Institutional Buyers (QIBs): Not more than 50%
• Non-Institutional Investors (NIIs): Not more than 15%

Subscription Information

The subscription for the Deepak Builders IPO will run from October 21, 2024, to October 23, 2024. Here are the important subscription dates:

Grey Market Premium (GMP)

As of now, the Grey Market Premium (GMP) for the Deepak Builders IPO is  ₹60 Per Share. This information will become clearer once the price band is announced. Investors should keep an eye on market trends as the opening date approaches.

Business Overview

Core Services

Deepak Builders & Engineers specializes in a variety of construction projects, including:

• Construction Projects:
• Administrative and institutional buildings
• Hospitals and medical colleges
• Industrial facilities
• Historical memorials
• Sports complexes
• Residential complexes
• Infrastructure Projects:
• Specialized structural work (flyovers, rail under bridges, and rail over bridges)
• Development and redevelopment of railway stations

Operational Reach

The company operates across multiple Indian states, including Punjab, Haryana, Rajasthan, Uttarakhand, and the Union Territories of Chandigarh and Delhi. It provides Engineering, Procurement, and Construction (EPC) services on both fixed-sum turnkey and item-rate/percentage bases.

Project Portfolio

Deepak Builders has successfully completed 76 projects since its inception, with notable projects such as the Jang-E-Azadi Memorial in Kartarpur and various hospital constructions.

Financial Performance

Deepak Builders has displayed significant growth over the past few years. Here’s a look at its key financial metrics:

The company’s revenue has shown a strong upward trend, with a significant increase projected for FY 2024.

Review of the IPO

The Deepak Builders IPO marks an important step for the company as it enters the public market. With a solid financial foundation, a robust order book, and a strong reputation in the construction sector, Deepak Builders presents a compelling investment opportunity. However, investors should consider the market conditions and wait for the price band to be announced.

Allotment Information

The allotment details for the Deepak Builders IPO are as follows:

How to Check Allotment Status

Investors can check their allotment status through the registrar’s website, Kfin Technologies, or financial news platforms once the allotment process is finalized.

FAQs

Here are some frequently asked questions regarding the Deepak Builders IPO:

General Information

• What is the IPO opening and closing date?
• The IPO opens on October 21, 2024, and closes on October 23, 2024.
• What is the size of the IPO?
• The total issue size is approximately ₹250 crores, consisting of a fresh issue of up to 12 million equity shares and an offer for sale of up to 2.4 million equity shares.
• What is the face value of the shares?
• The face value is ₹10 per equity share.

Pricing and Lot Size

• What is the price band for the IPO?
• The price band has not yet been announced and will be disclosed closer to the opening date.
• What is the minimum investment required?
• The minimum investment will depend on the lot size, which is yet to be announced.

Allotment and Listing

• When will the allotment be finalized?
• The allotment date is scheduled for October 24, 2024.
• When will shares be credited to Demat accounts?
• Shares will be credited to Demat accounts on October 25, 2024.
• When is the expected listing date?
• The expected listing date is October 28, 2024, on both BSE and NSE.

Application Process

• How can investors apply for the IPO?
• Investors can apply through their brokerage accounts or platforms that facilitate IPO applications. This usually involves selecting the IPO, entering the number of lots, and confirming with a UPI ID for payment.
• How can I check my allotment status?
• Allotment status can be checked through the registrar’s website (Kfin Technologies) or via your brokerage platform after the allotment process is completed.

Use of Proceeds

• What will the funds from the IPO be used for?
• The proceeds will be allocated for:
  • Repayment of certain borrowings (approximately ₹30 crores)
  • Funding working capital requirements (around ₹111.96 crores)
  • General corporate purposes

Conclusion

The Deepak Builders IPO presents a promising opportunity for investors looking to participate in the growing construction sector. With a solid financial track record and strategic plans for using the raised capital, the company is well-positioned for future growth. As the opening date approaches, keep an eye out for announcements regarding the price band and lot sizes, which will be crucial for making informed investment decisions.

Thank you for reading and staying informed about the Deepak Builders IPO!