Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Detail Review –
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Detail is set to open from 21st Oct 2024 to 23rd Oct 2024. In this article we will analyze the financials , strengths and weaknesses of the Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO). Keep scrolling below to read more!
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Overview –
Established in 2017, Deepak Builders & Engineers India Limited is a construction company specializing in administrative, institutional, and industrial buildings, hospitals, stadiums, residential complexes, and other construction activities.
The company has completed turnkey projects encompassing architectural, structural, civil, MEP, firefighting systems, public health services, IT systems, operation theaters, medical gas pipelines, and landscaping.
The company’s business can be categorized into the following verticals:
- Construction Projects business;
- Infrastructure Projects business; and
- Sale of products.
The company has completed construction and infrastructure projects in four states of India – Punjab, Haryana, Rajasthan, Uttarakhand – and two Union Territories – Chandigarh and the National Capital Territory of Delhi.
The company manages twelve projects, including seven EPC projects and five item rate/percentage rate contracts. Within the ongoing projects, the construction portfolio consists of four hospital and medical college projects, one administrative & and institutional building, and one industrial building. The infrastructure projects include four projects focused on upgrading, developing, and redeveloping railway stations and related work, as well as two road and bridge projects related to rail over bridges.
As of June 30, 2024, the company’s order book amounts are as follows: Rs 13,803.89 million for Fiscal 2024, Rs 11,126.88 million for Fiscal 2023, and Rs 16,578.79 million for Fiscal 2022, and Rs 7,196.32 million for Fiscal 2021.
The company has experience in executing projects with varying degrees of complexity, including 3D Domes at Jang-E-Azadi, Kartarpur, Punjab; Heritage Walk at Golden Temple Corridor, Amritsar, Punjab; and fire ramps in specialized steel structures at AIIMS, Delhi.
Competitive Strength
- High-quality construction projects are achieved with the use of technology, efficient processes, and a dedicated workforce.
- Investing in modern construction equipment fleets enables the timely delivery of high-quality infrastructure development and construction projects.
- Experienced Management Team
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Synopsis-
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) is set to be open from 21st Oct 2024 to 23rd Oct 2024, offering combination of fresh issue of 1.07 crore shares aggregating to Rs 217.21 crores and offer for sale of 0.21 crore shares aggregating to Rs 42.83 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Monday, October 28, 2024.
The total issue size of this IPO amounts to Rs. 260.04 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 21st Oct 2024 |
| Closing Date | 23rd Oct 2024 |
| Lot Size | 73 Shares |
| Face Value | Rs 10 |
| IPO Size | Rs. 260.04 Cr |
| Fresh Issue | Rs. 217.21 Cr |
| IPO Price Range | Rs. 192 – 203 |
| Min. Investment | Rs. 14,819 |
| Offer for Sale (OFS) | Rs. 42.83 Cr |
| Employee Discount | N/A |
| Basis of Allotment | 24th Oct 2024 |
| Refunds | 25th Oct 2024 |
| Listing Date | 28th Oct 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Market Lot
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) minimum market lot is 73 shares with ₹14,819 application amount. The retail investors can apply up to 13 lots with 949 shares or ₹192,647 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 73 | ₹14,819 |
| Retail Maximum | 13 | 949 | ₹192,647 |
| S-HNI Minimum | 14 | 1,022 | ₹207,466 |
| S-HNI Maximum | 67 | 4,891 | ₹992,873 |
| B-HNI Minimum | 68 | 4,964 | ₹1,007,692 |
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Book Running Lead Managers –
FedEx Securities Pvt Ltd.
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Registrar to the offer –
The registrar for the Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) is KFin Technologies Limited.
They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- Repayment/prepayment, in full or part, of certain borrowings availed by the Company;
- Financing the working capital requirements of the company and
- General corporate purposes.
Key Performance Indicator –
The market capitalization of Deepak Builders & Engineers India Limited is Rs 945.59 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | 39.39% |
| ROCE: | 41.72% |
| EBITDA Margin: | 22.98% |
| PAT Margin: | 11.81% |
| Debt to equity ratio: | 1.00 |
| Earning Per Share (EPS): | ₹16.84 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 52.39% |
| Net Asset Value (NAV): | ₹39.37 |
Financial Status –
Deepak Builders & Engineers India Limited’s revenue increased by 19% and profit after tax (PAT) rose by 182% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 March 2024.
The company’s total assets are Rs. 11,313.73 crore.
The company’s total revenue is Rs. 11,632.76 crore.
The company’s PAT is Rs. 1,274.38 crore.
The company’s net worth is Rs. 4,074.84 crore
| Particulars(in Rs. Crores) | 30 June 2024 | 31 MAR 24 | 31 MAR 23 | 31 MAR 22 |
|---|---|---|---|---|
| Revenue From Operations | 106.34 | 516.74 | 435.46 | 364.99 |
| PAT | 14.21 | 60.41 | 21.4 | 17.66 |
| Net Worth | 155.81 | 141.25 | 89.35 | 70.34 |
| Total Assets | 641.1 | 558.75 | 449.3 | 322.18 |
| Total Borrowings | 153.17 | 153.04 | 96.57 | 79.65 |
Evaluation of P/E Ratio :
The P/E Ratio of Deepak Builders & Engineers India Limited is 12.05
Comparative Analysis with Listed Peers :
In simple words, the P/E ratio of Deepak Builders & Engineers India Limited IPO (12.05x), compared with the industry’s average P/E of 25.03x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) –
| Company Name | EPS | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|
| Deepak Builders & Engineers India Limited | 16.84 | 39.37 | 52.39 | |||
| Ircon International Ltd | 9.17 | 61.37 | 24.67 | 15.76 | 3.7 | |
| Ahluwalia Contracts (india) Ltd. | 56.06 | 239.17 | 19.25 | 23.44 | 4.51 | |
| Psp Projects Ltd | 34.42 | 254.06 | 19.16 | 13.55 | 2.59 | |
| Itd Cementation India Ltd | 15.93 | 86.95 | 37.04 | 20 | 6.86 |
Dividend Policy
The company has not paid any dividends in the last five fiscals.
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Strengths –
A well-established presence and track record.
Good order book with a clientele of government agencies.
Robust financial results.
Seasoned marketers with a solid foundation in senior management.
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Weakness –
The majority of revenue comes from projects that are granted or carried out by government, semi-government, and government-controlled organizations. Any unfavorable modifications to government regulations could result in the foreclosure or termination of its contracts.
Several large-scale projects make up the majority of the portfolio of projects. Any obstacle or delay with these initiatives could negatively affect its financial situation.
Since Punjab has historically accounted for a large portion of its project portfolio, any modifications to the region’s laws, policies, or another political and economic climate could harm its operations, finances, and business.
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) Status
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) allotment status will be available on KFin Technologies Limited.
Click on KFin Technologies Limited to get allotment status.
Deepak Builders & Engineers India Limited IPO (Deepak Builders & Engineers IPO) GMP Today –
IPO’s last GMP is ₹60, last updated 2oth Oct 2024. With the price band of 203.00, IPO’s estimated listing price is ₹263(cap price + today’s GMP). The expected percentage gain/loss per share is 29.56%.
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 –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
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.
For all such latest information on upcoming IPOs, keep visiting our website.
