The initial share sale received bids for 5,67,28,300 shares against 1,49,44,944 shares on offer, as per BSE data.
The portion for NIIs received 8.06 times subscription while the category for retail investors got subscribed 4.04 times. The category for Qualified Institutional Buyers (QIBs) received 3% subscription. The employee portion has been subscribed 9.78 times.
On the first day of bidding, DEE Development IPO subscription status was 2.51 times, as per BSE data.
Dee Development IPO, which set its price band in the range of ₹193 to ₹203 per equity share, will close on Friday, June 21. Investors can bid for a minimum of 73 equity shares.
Dee Development IPO has allocated 50% of the shares in the public offering for qualified institutional buyers (QIB), 15% for NII, and 35% for retail investors. Eligible employees who bid in the employee reserve section would receive a discount of ₹19 per equity share.
Dee Developments is an engineering firm that provides specialised process pipe solutions to sectors such as oil and gas, electricity (including nuclear), chemicals, and others through designing, procurement, and production.
The firm now operates seven production sites, three in Palwal, Haryana, and one each in Anjar, Gujarat, Barmer, Rajasthan, Numaligarh, Assam, and Bangkok, Thailand.
Customers include JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill SA, Reliance Industries, HPCLMittal Energy Ltd, and Toshiba JSW Power Systems.
DEE Development IPO Review
Marwadi Financial Services
According to the brokerage, based on the FY-23 / FY24-annualised EPS of ₹1.88/2.77 on a post-issue basis, the business will list at a P/E of 108.06x/73.33x, with a market capitalisation of ₹14,017 million, while its peer, ISGEC Heavy Engineering Ltd, is trading at a P/E of 37.8x.
“We rank this IPO as “Subscribe” since the business is the leading provider in process piping solutions in India in terms of installed capacity, offering specialist process piping systems from strategically positioned state-of-the-art manufacturing facilities with high entry barriers. The brokerage also stated that it is available at a reasonable valuation given the company’s future development prospects, ” the brokerage said.
Reliance Securities
According to the brokerage, DEE has emerged as one of India’s leading companies in process piping solutions in terms of installed capacity, with a strong emphasis on automation and process excellence to drive operational savings and services to its clients. DEE’s advantages include being a first-generation entrepreneur with three decades of expertise, a solid management team with relevant credentials, and the ability to leverage its financial flexibility.
“DEE’s increasing focus on high margin products with additional contributions from modular skids and usage of high-grade materials, forging technology tie-ups with select global OEMs to derive consistent order flow to become a preferred partner for its clients for the next few years. Hence, we recommend an “SUBSCRIBE” to the issue,” the brokerage advised.
DEE Development Engineers IPO details
DEE Development IPO, which is worth ₹418 crore, comprises a fresh issue of ₹325 crore, and an offer-for-sale (OFS) of 4,582,000 equity shares by the promoter Krishan Lalit Bansal.
The company’s promoters are Krishan Lalit Bansal, Ashima Bansal, and DDE Piping Components Private Limited.
The firm intends to use the net proceeds from the new issuance to meet the following objectives: the company’s working capital requirements ( ₹75 crore); the prepayment or repayment of all or a portion of certain outstanding borrowings obtained by the company ( ₹175 crore); and general corporate purposes.
SBI Capital Markets Limited and Equirus Capital Private Limited are the book-running lead managers for the DEE Piping Systems IPO, with Link Intime India Private Ltd serving as the registrar.
DEE Development Engineers IPO GMP today
DEE Development IPO GMP today is +95. This indicates DEE Development Engineers share price were trading at a premium of ₹95 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, DEE Development IPO expected listing price was indicated at ₹298 apiece, which is 46.8% higher than the IPO price of ₹203.
Based on the previous ten sessions of grey market activity, today’s IPO GMP trends higher, indicating a solid listing. According to analysts at investorgain.com, the lowest GMP is ₹0, while the maximum GMP is ₹95.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Also Read: DEE Development Engineers IPO: 10 key risks you should know about before investing
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 20 Jun 2024, 11:02 AM IST