The Initial Public Offering of DEE Development Engineers will open for subscription on Wednesday, June 19 and closes on Friday, June 21. The IPO is a book-built issue which comprises fresh equity sale of ₹325 Cr. and an offer for sale of 45.82 Lakhs equity shares. DEE Development IPO has reserved not more than 50% of shares in the public issue for Qualified Institutional Buyers, not less than 15% for NII and not less than 35% for Retails. The issue shall be listed on both NSE and BSE with a tempting date fixed as June 26, 2024
The company is offering its shares in the price band of ₹193-203 per equity share with a face value of ₹10. The minimum lot size of the issue is 73 equity shares and its multiple thereafter. The bidding period for Anchor Investor will be on Tuesday, June 18.
About DEE Development Engineers Limited
DEE Development Engineers Limited was Incorporated by the Chairman and Managing Director Mr. K.L. Bansal in the year 1988. DEE is engineering company who provide specialized process piping solutions for industries such as oil and gas, power(including nuclear), chemicals and other process industries through engineering, procurement and manufacturing. DEE is an ISO certified company.
The company intends to use the net proceeds from the issue to meet the following objectives – funding working capital requirement of the company (₹750 Cr.), the prepayment or repayment of all or a portion of certain outstanding borrowing availed by the company (₹175 Cr.) and to meet general corporate purpose.
Subsidiaries of DEE Development Engineers
- DEE Piping Systems (Thailand) Co. Limited
- DEE Fabricon India Private Limited
- Malwa Power Private Limited
Financials
| *all in ₹ Cr. | 2023-24 (9 months) | 2023 | 2022 |
| Revenue | 545 | 595 | 460 |
| Profit | 14.3 | 12.9 | 8.1 |
Risk Factor – The Company’s PAT margins are very low 2.63%, ROCE are very low 3.91% and the subsidiaries have incurred losses in the last three financial years.
SBI Capital Market Limited and Equirus Capital Private Limited are the book running lead managers. ICICI Bank Limited and Axis Bank Limited are the sponsor bank of the IPO. Link Intime India Private Limited is the registrar of the offer.
