Deepak Builders & Engineers IPO: Public Issue Subscribed 23x On Final Day, GMP Hints Strong Listing; Check

The initial public offering (IPO) of Deepak Builders & Engineers is generating significant buzz among investors, particularly retail and non-institutional investors (NIIs). The offering, which opened for subscription on Monday, October 21, is set to close today, October 23, at 5 pm. With a book-built issue size of Rs 260.04 crore, this IPO has attracted considerable interest.

IPO Pricing and Structure

Deepak Builders & Engineers has priced its IPO within a range of Rs 192 to Rs 203 per share. The offering consists of a fresh issue of 1.07 crore shares, along with an offer for sale (OFS) of 21 lakh shares. The company intends to utilize the net proceeds from the IPO to reduce debt, fund working capital requirements, and cover general corporate expenses.

The official registrar for this book-built issue is KFin Technologies Limited, while Fedex Securities has been designated as the lead manager of the public offering.

Grey Market Premium (GMP)

As of the latest updates, the grey market premium (GMP) for Deepak Builders & Engineers has been reported at Rs 62. This suggests a healthy market sentiment towards the stock. Given the upper price band of Rs 203, the anticipated listing price of the shares is approximately Rs 265, reflecting a premium of around 30.54%. Such a strong GMP typically indicates robust demand and investor confidence ahead of the stock's debut on the exchanges.

Subscription Status

By 1 pm on the third day of subscription, Deepak Builders & Engineers' IPO had been subscribed 23.83 times, receiving bids for 21,37,16,625 shares against the 89,67,061 shares offered.

The retail investor segment was subscribed 27.05 times, with bids for 12,12,64,096 shares against 44,83,500 shares available. The NII segment saw even greater demand, being subscribed 45.78 times, with bids for 8,79,71,205 shares against 19,21,500 shares. Qualified Institutional Buyers (QIBs) segment was subscribed 1.75 times, receiving bids for 46,67,912 shares against 25,62,061 shares available.

The IPO remains open for subscription until 5 pm today, and investors can apply in lots, with one lot comprising 73 shares. Share allotment is anticipated to be finalized on Thursday, October 24, with successful bidders expecting the shares to be credited to their demat accounts by Friday, October 25. The stock is projected to make its debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Monday, October 28.

Deepak Builders & Engineers India Limited is well-positioned in the construction sector, specializing in the construction of administrative, institutional, and industrial buildings, as well as hospitals, stadiums, residential complexes, and other large-scale projects.