The initial public offering (IPO) of DEE Development Engineers is set to open for bidding on Wednesday, June 19, and will remain open until Friday, June 21.
This IPO presents a significant opportunity for investors to become part of an established engineering firm that has been operational since 1988.
Let’s discuss the essential details of the DEE Development Engineers IPO, including the price band, company background, financials, and key aspects of the offering.
DEE Development Engineers IPO Details
Offering Period and Price Band
The IPO will be available for bidding from June 19 to June 21. The company has set a fixed price band of Rs 193-203 per share.
Investors can place their bids for a minimum of 73 equity shares, with the ability to apply in multiples thereafter.
Structure of the IPO
The IPO consists of two main components:
- Fresh Issue: Up to Rs 325 crore worth of new shares will be issued.
- Offer for Sale (OFS): Up to 45.82 lakh equity shares, amounting to Rs 93.01 crore at the upper price band, will be sold by the promoter Krishan Lalit Bansal.
In total, DEE Development Engineers aims to raise approximately Rs 418.01 crore through this initial stake sale.
Company Overview
Background and Services
Founded in 1988, DEE Development Engineers specializes in providing process piping solutions for various industries, including oil and gas, power (with a focus on nuclear energy), chemicals, and other process industries.
The company’s offerings encompass engineering, procurement, and manufacturing services.
Product Range
DEE Development Engineers manufactures and supplies a wide array of piping products and solutions, including:
- High-pressure piping systems
- Piping spools
- High-frequency induction pipe bends
- Longitudinally submerged arc welding pipes
- Industrial pipe fittings
- Pressure vessels
- Industrial stacks
- Modular skids
- Accessories such as boiler superheater coils and de-superheaters
Expansion and New Ventures
Recently, the company has expanded its portfolio by venturing into the design, engineering, fabrication, and manufacturing of pilot plants, adding a new dimension to its business operations at its Palwal facility.
Financial Performance
Recent Financials
For the nine months ended December 31, 2023, DEE Development Engineers reported a net profit of Rs 14.34 crore on a revenue of Rs 380.23 crore.
For the full financial year 2022-23, the company recorded a net profit of Rs 12.97 crore with a total revenue of Rs 614.32 crore.
Manufacturing Facilities
The company operates seven manufacturing facilities across various locations, including:
- Palwal, Haryana (three facilities)
- Anjar, Gujarat
- Barmer, Rajasthan
- Numaligarh, Assam
- Bangkok, Thailand
These facilities highlight the company’s extensive manufacturing capabilities and its commitment to maintaining a robust production infrastructure.
Key Managers and Listing Details
Lead Managers
The book-running lead managers for the DEE Development Engineers IPO are SBI Capital Markets and Equirus Capital, ensuring the IPO process is managed efficiently and professionally.
Registrar
Link Intime India has been appointed as the registrar for the IPO, responsible for managing the allotment and refund processes.
Listing Information
Shares of DEE Development Engineers will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The tentative date for listing is Wednesday, June 26, allowing investors to trade their shares on these major exchanges shortly after the IPO closes.
Conclusion
The upcoming IPO of DEE Development Engineers offers investors a chance to participate in the growth of a well-established engineering company with a diverse product range and strong financial performance.
With a strategic expansion into new business verticals and robust manufacturing capabilities, the company is poised for future growth.
The IPO, managed by reputable lead managers and backed by a solid financial foundation, presents a compelling investment opportunity for those looking to invest in the engineering sector.
As the IPO opens on June 19, interested investors should carefully consider the key details and evaluate their investment strategies accordingly.
With shares priced in the range of Rs 193-203 and the opportunity to invest in multiples of 73 equity shares, this IPO could be a valuable addition to a diversified investment portfolio.
