DEE Development Engineers Limited IPO (DEE Piping Systems IPO) Review –
DEE Development Engineers Limited IPO (DEE Piping Systems IPO) is set to open from 19th June 2024 to 21st June 2024. This article will analyze the financials , strengths and weaknesses of the DEE Development Engineers Limited IPO (DEE Piping Systems IPO). Keep scrolling below to read more!
DEE Development Engineers Limited IPO (DEE Piping Systems IPO) Overview –
Established in 1988, DEE Development Engineers Limited is an engineering company providing specialized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals, and other process industries through engineering, procurement, and manufacturing.
The company also manufactures and supplies piping products, such as high-pressure piping systems, piping spools, high frequency induction pipe bends, longitudinally submerged arc welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids, and accessories. These accessories include boiler super heater coils, de-super heaters, and other customized manufactured components. Their Company currently is ranked as one of the leading process pipe solution providers in the world, in terms of technical capability to address complex process piping requirements arising from multiple industrial segments.
The company has seven manufacturing facilities in Palwal – Haryana ; Anjar – Gujarat; Barmer – Rajasthan; Numaligarh – Assam; and Bangkok, Thailand, with three manufacturing facilities located in Palwal – Haryana.
The company’s manufacturing facilities had a cumulative installed capacity of 70,875 MT for the nine months ended December 31, 2023, with annual capacities of 94,500 MT, 91,500 MT, and 86,500 MT for Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively.
The company recently expanded into a new business vertical, offering design, engineering, fabrication, and manufacturing of pilot plants at Palwal Facility III.
As of March 31, 2024, the company has 1,061 employees, including 54 highly skilled welders with certifications like CSWIP 3.0 and 3.1, AWS-CWI, and CWV, and 53 employees are highly skilled in non-destructive examination with certifications like NDE level II qualifications as per ASNT/SNT-TC-1A, and NDE level III qualifications as per BS EN ISO 9712.
DEE Development Engineers Limited IPO (DEE Piping Systems IPO) Synopsis-
DEE Development Engineers Limited IPO (DEE Piping Systems IPO) is set to be open from 19th June 2024 to 21st June 2024, offering combination of fresh issue of 1.6 crore shares aggregating to Rs 325.00 crores and offer for sale of 0.46 crore shares aggregating to Rs 93.01 crores. This NSE,BSE IPO follows a Book Built Issue IPO.
The total issue size of this IPO amounts to Rs.418.01 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 19th June 2024 |
| Closing Date | 21st June 2024 |
| Lot Size | 73 Shares |
| Face Value | Rs. 10 |
| IPO Size | Rs. 418.01 Cr |
| Fresh Issue | Rs. 325 Cr |
| IPO Price Range | Rs. 193-203 |
| Min. Investment | Rs. 14,819 |
| Offer for Sale (OFS) | Rs. 93.01 Cr |
| Basis of Allotment | 24th June 2024 |
| Refunds | 25th June 2024 |
| Listing Date | 26th June 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
DEE Development Engineers Limited IPO (DEE Piping Systems IPO) Book Running Lead Managers –
SBI Capital Markets Limited
- Equirus Capital Private Limited
DEE Development Engineers Limited IPO (DEE Piping Systems IPO) Registrar to the offer –
The registrar for the DEE Development Engineers Limited IPO (DEE Piping Systems IPO) is Link Intime India Private Ltd. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
- Funding working capital requirements of the Company;
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company; and
- General corporate purposes.
Key Performance Indicator –
The market capitalization of DEE Development Engineers Limited IPO (DEE Piping Systems IPO) is Rs 1401.69 Cr.
KPI as of December 31, 2023.
| Earning Per Share (EPS): | ₹2.45 per Equity Share |
| Price/Earning P/E Ratio: | 83 |
| Return on Net Worth (RoNW): | 3.35% |
| PAT Margin(%) | 2.63 |
Financial Status –
DEE Development Engineers Limited (DEE Piping Systems) revenue increased by 30.47% and profit after tax (PAT) rose by 58.25% between the financial year ending with March 31, 2023 and March 31, 2022.
| Particulars(in Rs. Crores) | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
| Revenue From Operations | 595.49 | 460.91 | 495.21 |
| EBIDTA | 69.17 | 64.60 | 53.68 |
| PAT | 12.97 | 8.19 | 14.20 |
| Total Assets | 966.25 | 845.39 | 835.87 |
| Total Borrowings | 542.61 | 433.41 | 381.55 |
Peers of DEE Development Engineers Limited IPO (DEE Piping Systems IPO) –
Isgec Heavy Engineering Limited is the only company in India engaged in developing a similar line of product solutions to those of DEE Development Engineers Limited. The table below show peer comparison from DRHP/RHP.
| Company | EPS Basic | EPS Diluted | NAV | P/E(x) | RoNW | Financial statements |
|---|---|---|---|---|---|---|
| DEE Development Engineers Limited | 2.45 | 2.45 | 79.87 | 3.14 | Consolidated | |
| Isgec Heavy Engineering Ltd | 26.72 | 26.72 | 325.32 | 42.40 | 8.59 | Consolidated |
DEE Development Engineers Limited IPO (DEE Piping Systems IPO) Strengths –
- DEE Development leads with significant industry entry barriers, skilled labour, and complex tech requirements.
- Holds a strategic leadership position fueled by longstanding global customer relationships.
- Boasts comprehensive manufacturing capabilities with a 70,875 MT installed capacity as of 2023.
- The strategic location of facilities near major ports enhances export potential and operational efficiency.
- Extensive product range, including high-pressure systems and specialised piping solutions.
- Demonstrates high-quality standards, crucial for critical industries like oil, gas, and nuclear.
- Strong customer retention evidenced by long-term relationships and robust order books.
DEE Development Engineers Limited IPO (DEE Piping Systems IPO) Weakness –
- Non-compliance with stringent customer standards could lead to recalls and claims, affecting financial stability.
- Dependence on a few customers, with the top 10 contributing 66.18% of revenue, poses a significant business risk.
- The industry’s high entry barriers require substantial capital investment and skilled labor, limiting rapid scalability.
- Exposure to sectors like oil and gas, with 52.76% revenue dependency, subjects business to market volatility.
- Mechanical failures led to four equipment breakdowns, potentially causing operational delays and financial losses.
- Rapid technological changes could out date products; failure to innovate might result in a loss of competitiveness.
DEE Development Engineers Limited IPO (DEE Piping Systems IPO) GMP Today –
DEE Development Engineers IPO last GMP is ₹88, last updated Jun 22nd 2024. With the price band of 203.00, DEE Development Engineers IPO’s estimated listing price is ₹291 (cap price + today’s GMP). The expected percentage gain/loss per share is 43.35%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
DEE Development Engineers Limited’s net worth and total assets have increased. So if you are planning to invest in this upcoming IPO this article would be really helpful in knowing about the factual data of the company, and its performance.
If the information and statistics offered in this article raises your interest, you may want to consider participating and benefiting from the advantages it will offer the market.
Experienced investors may apply in the upcoming IPO after thorough evaluation of all the factors to gain rewards.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
