DEE Development Engineers IPO To Open On June 19, GMP Hints 24% Listing Premium; Apply?

Process pipe solutions are the area of expertise for DEE Development Engineering Ltd., an engineering firm that serves the oil and gas, energy, chemical, and other sectors. The firm has been offering high-pressure pipe systems, piping spools, industrial fittings, and other products for more than thirty years. The company is one of the top suppliers of process pipe solutions for various industrial needs worldwide.

Initial Public Offering, or IPO, of DEE Development Engineering Ltd. is set to take place soon. The subscription window shall begin on June 19, 2024, and end on June 21, 2024. The book-built IPO of DEE Piping Systems is valued at Rs 418.01 crores. The issue consists of an offer for sale (OFS) of 0.46 crore shares, valued at Rs 93.01 crores, and a fresh issuance of 1.6 crore shares, valued at Rs 325.00 crores. On Monday, June 24, 2024, the allocation for the DEE Piping Systems IPO is anticipated to be completed while the proposed listing date for the DEE Piping Systems initial public offering (IPO) is Wednesday, June 26, 2024, on the BSE and NSE.

The IPO price for DEE Piping Systems has been set at Rs 193 to Rs 203 per share, with a minimum lot size limit of 73 shares per application. Consequently, regular investors must deposit a minimum of Rs 14,819 in the IPO. The minimum investment lot size for sNII is 14 lots, or 1,022 shares, worth Rs 207,466, while for bNII, it is 68 lots, or 4,964 shares, worth Rs 1,007,692.

The book-running lead managers for the DEE Piping Systems IPO are SBI Capital Markets Limited and Equirus Capital Private Limited, and the registrar is Link Intime India Private Ltd. 50% of the net issue for QIB, 35% for retail investors, and 15% for NII (HNI) have been reported by DEE Piping Systems' IPO Reservation. The company intends to use the net proceeds from the fresh issue for general corporate operations, prepayment or repayment of all or a portion of certain outstanding borrowings that the company has obtained, and meeting working capital requirements.

Chittorgarh.com states that the DEE Development Engineers IPO latest GMP is Rs 50 and was last updated on June 18, 2024, at 8:55 AM. The projected listing price for the DEE Development Engineers IPO is Rs 253 (cap price + today's GMP), considering the upper price band of 203.00. Therefore, based on the current GMP, the estimated listing premium for DEE Development Engineers' IPO is 24.63%.

DEE Development Engineers IPO Review

"The company's revenue has grown at a CAGR of 10% between FY21 - FY23. The company has initiated the capacity expansion plans as mentioned above which would help it to increase the financial performance going ahead. Further, the company is also deleveraging its balance sheet by reducing debt. On industrial front, the Indian pipe process industry has decent growth outlook and is expected to grow at the CAGR of 6.1% between FY23 to FY30 supported by Oil and Gas, Chemicals/Petrochemicals, Ethanol, Biomass and Increasing electricity consumption (Source: RHP). At upper price band of Rs 203, the company is valued at the PE multiple of 108.1x/73.3x based on FY23/FY24E (Annualised) earnings on post-issue capital respectively. The company is raising funds through fresh issue to meet working capital requirement and repayment of borrowings," said SBI Securities in a note.