Dee Development Engineers Secures Rs 125 Cr from Anchor Investors Pre-IPO

Piping solutions provider Dee Development Engineers Ltd announced on Tuesday its successful mobilization of over Rs 125 crore from anchor investors, setting the stage for its forthcoming initial public offering (IPO). The IPO, valued at Rs 418 crore, is scheduled to open for subscription on June 19 and will conclude on June 21. In a strategic move ahead of the IPO, the company has allocated 61.63 lakh equity shares to 19 funds at Rs 203 each, totaling an investment of Rs 125.1 crore.

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Notable investors such as Citigroup Global Markets Mauritius, Morgan Stanley Asia Singapore Pte, and Aurigin Master Fund, alongside Pinebridge Global Funds and SBI General Insurance Company, have been allocated shares. Additionally, prominent mutual funds including Kotak Mahindra Mutual Fund, LIC Mutual Fund, HDFC Mutual Fund, and Aditya Birla Sun Life Mutual Fund participated in the anchor round.

The IPO comprises a fresh issuance of equity shares worth Rs 325 crore and an offer-for-sale of 45.82 lakh equity shares by promoter and CMD Krishan Lalit Bansal, valued at Rs 93 crore at the upper end of the price band. This brings the total IPO size to Rs 418 crore. Currently, Bansal holds a 74.74 per cent stake in the company.

Shares are set to be available for subscription at a price range of Rs 193 to Rs 203 apiece. The company plans to utilize Rs 175 crore of the proceeds for debt repayment, Rs 75 crore for funding working capital requirements, and the remaining Rs 75 crore for general corporate purposes.

Dee Development Engineers is recognized for its specialized process piping solutions catering to industries such as oil and gas, power—including nuclear—chemicals, and other process sectors through its expertise in engineering, procurement, and manufacturing. The company boasts seven manufacturing facilities located in Palwal (Haryana), Anjar (Gujarat), Barmer (Rajasthan), Numaligarh (Assam), and Bangkok (Thailand).

Its clientele includes industry giants like JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill SA, Reliance Industries, HPCLMittal Energy Ltd, and Toshiba JSW Power Systems. SBI Capital Markets and Equirus Capital have been appointed as the merchant bankers to oversee the company's maiden public issue. Following the IPO, equity shares of Dee Development Engineers will be listed on both the BSE and NSE.