DEE Development Engineers IPO key points

Here are the key points about the upcoming DEE Development Engineers IPO:

  • DEE Development Engineers Ltd is an engineering company that provides specialized process piping solutions for industries like oil & gas, chemicals, power etc.
  • The ₹418 crore IPO will open for subscription from June 19-21 in the price band of ₹193-204 per share.
  • It consists of a fresh issue of ₹325 crore and an offer for sale of ₹93 crore by existing shareholders.
  • Minimum bid lot is 73 shares worth ₹14,819 for retail investors.
  • IPO proceeds will be used for working capital needs, debt repayment and general corporate purposes.
  • Lead managers are Equirus Capital and SBI Caps, registrar is Link Intime India.
  • Company has 7 manufacturing facilities and reported revenue of ₹614 crore and profit of ₹12.9 crore in FY23.
  • Key issue dates: Bid period (June 19-21), allotment basis (June 24), listing (June 26).

DEE Development Engineers Ltd, a specialized process piping solutions provider for industries like oil & gas and power, has hit the capital markets with its Rs 418 crore initial public offering (IPO). The book-building public issue, which aims to raise fresh capital and provide an exit to an existing shareholder, will open for subscription on June 19 and close on June 21.

The IPO comprises a fresh issue of equity shares worth Rs 325 crore and an offer for sale (OFS) of up to 45.82 lakh shares by promoter Krishan Lalit Bansal, amounting to Rs 93 crore at the upper end of the price band. The price band has been fixed at Rs 193-204 per share.

A 35-year-old company founded in 1988, DEE Development Engineers specializes in engineering, procurement and manufacturing of piping products and systems used across sectors like oil & gas, power including nuclear, chemicals and other process industries. Its diverse product portfolio includes high-pressure piping systems, induction pipe bends, piping spools, pressure vessels, industrial stacks and customized components.

The Haryana-based firm plans to utilize the IPO proceeds to fund working capital needs, repay debt and general corporate purposes. The OFS proceeds will go to the selling shareholder.

DEE Development has an extensive manufacturing footprint with 7 facilities across locations like Palwal, Anjar, Barmer, Numaligarh and Bangkok. It recently ventured into design and fabrication of pilot plants at its Palwal unit.

For the 9 months ended December 2022, the company reported a profit of Rs 14.3 crore on revenues of Rs 380 crore. In FY22, it posted Rs 13 crore profit on Rs 614 crore revenues.

The company has reserved Rs 1 crore worth of shares for eligible employees at a discount of Rs 19 per share. Qualified institutional buyers will get 50% of the issue, while non-institutional and retail quotas are 15% and 35% respectively.

SBI Capital Markets and Equirus Capital are the IPO lead managers, with Link Intime India as the registrar. The shares are proposed to be listed on BSE and NSE on June 26.

As an engineering capital goods player exposed to cyclical industrial sectors, DEE Development’s growth prospects will hinge on sustained capex momentum across its customer verticals. Investors will also watch the IPO demand amid recent volatility in equity markets.

Leave a Comment