Upcoming IPO: Deepak Builders & Engineers Subscription To Open Soon; Check Price Band, Dates & More

The Deepak Builders & Engineers Limited Initial Public Offering (IPO) is scheduled to open for subscription on Monday, October 21, and will remain open until Wednesday, October 23. Investors have been watching this upcoming public issue, as it presents an opportunity to invest in a construction and infrastructure company. The price band for the IPO has been set in the range of Rs 192 to Rs 203 per equity share, with each share carrying a face value of Rs 10.

Key IPO Details and Structure

The Deepak Builders & Engineers IPO has been structured to appeal to investors, with allocations reserved for different investor categories:

50% of the shares are reserved for Qualified Institutional Buyers (QIBs).
15% are allocated to Non-Institutional Investors (NIIs).
35% of the shares are reserved for retail investors.
The lot size for the IPO is 73 equity shares, and investors can bid in multiples of 73 thereafter. The price/earnings (P/E) ratio for the fiscal year 2024 is 11.40 times the floor price and 12.05 times the cap price.

The allocation of shares to anchor investors is scheduled to occur on Friday, October 18, ahead of the public offering. Following the IPO, the basis of share allotment will be finalized on Thursday, October 24, with refunds initiated the next day on Friday, October 25. Investors can expect shares to be credited to their demat accounts on the same day. Finally, Deepak Builders & Engineers' shares are expected to debut on the BSE and NSE on Monday, October 28.

About Deepak Builders

Founded in September 2017, Deepak Builders & Engineers India Limited has risen in the Indian construction and infrastructure space. The company specializes in a wide array of projects, including administrative, institutional, and industrial buildings, hospitals, stadiums, and residential complexes. Their operations extend across four Indian states-Punjab, Haryana, Rajasthan, Uttarakhand-and two Union Territories-Chandigarh and the National Capital Territory of Delhi.

The company's project portfolio covers all-inclusive turnkey solutions, incorporating architectural, structural, and civil engineering services alongside critical MEP systems, firefighting infrastructure, public health services, IT systems, and landscaping.

Promoters and Financial Performance

The promoters of Deepak Builders & Engineers India Limited are Deepak Kumar Singal and Sunita Singal, who have maintained close control over the company, holding nearly 100% of its shares prior to the IPO. The upcoming public issue will see the sale of 1.07 crore fresh equity shares, in addition to 21.1 lakh shares available through an Offer for Sale (OFS). Both Deepak Kumar Singal and Sunita Singal will participate in the OFS.

Financially, the company has posted growth between March 2023 and March 2024, with revenue increasing by 19% and Profit After Tax (PAT) rising by 182%.

In comparison to its listed peers, Deepak Builders stands out for its competitive valuations:

IRCON International Ltd: P/E ratio of 24.67.
Ahluwalia Contracts (India) Ltd: P/E ratio of 19.25.
PSP Projects Ltd: P/E ratio of 19.16.
ITD Cementation Ltd: P/E ratio of 37.04.
These figures highlight the relatively attractive pricing of Deepak Builders' shares.

Deepak Builders & Engineers aims to use the IPO proceeds to enhance its working capital, which will help the company better manage borrowings and invest in future growth projects. The company is strategically positioned to capitalize on India's booming infrastructure sector and is focused on expanding its project portfolio while maintaining a sustainable, customer-centric approach.

Deepak Kumar Singal, Chairman and Managing Director, expressed optimism about the company's future, stating, "This IPO marks a significant milestone in our journey as a leader in infrastructure. The proceeds will allow us to strengthen our operational capabilities, manage our capital more efficiently, and invest in projects that align with our growth vision."