The engineering firm's Dee Development IPO price band has been set at Rs.193 to Rs.203 per equity share with a face value of Rs.10 The subscription period commences on Wednesday, June 19, concluding on Friday, June 21. Allocation to anchor investors for the Dee Development Engineers IPO is slated for Tuesday, June 18. The base price stands at 19.3 times the face value of equity shares, while the ceiling price is set at 20.3 times the face value. Bids can be placed for a minimum of 73 equity shares, with multiples of 73 shares thereafter.
Dee Development IPO has earmarked up to 50% of shares for qualified institutional buyers (QIB), a minimum of 15% for non-institutional Institutional Investors (NII), and at least 35% for retail investors. Eligible employees participating in the employee reservation segment are entitled to a discount of Rs.19 per equity share. Dee Development Engineers, specializing in providing specialized process pipe solutions to sectors such as oil and gas, electricity (including nuclear), and chemicals, has amassed over three and a half decades of manufacturing expertise. The firm has strategically positioned production facilities and robust engineering capabilities to drive its business forward. The price to earnings ratio (P/E) for the financial year ended 2023 for the company ranges from 78.78 to 82.86 times based on basic and diluted EPS, compared to the industry peer group average P/E ratio of 42.40 times. According to the red herring prospectus (RHP), ISGEC Heavy Engineering Ltd is listed as the company's peer with a P/E of 42.40.
DEE Development Engineers Limited witnessed a 30.47% increase in revenue and a 58.25% rise in profit after tax (PAT) during the fiscal years ending March 31, 2023, and March 31, 2022. The Dee Development IPO's basis of share allocation is tentatively set to be finalized on Monday, June 24, with refund initiation on Tuesday, June 25. Shares are expected to be credited to allottees' demat accounts on the same day as refunds. Dee Development's share price is anticipated to be listed on BSE and NSE on Wednesday, June 26. The Rs.418 crore Dee Development IPO comprises a fresh issue of Rs.325 crore and an offer-for-sale (OFS) of 4,582,000 equity shares by the promoter Krishan Lalit Bansal.
The company's promoters include Krishan Lalit Bansal, Ashima Bansal, and DDE Piping Components Private Limited. The company plans to utilize the net proceeds from the IPO to address the company's working capital requirements ( Rs.75 crore), prepayment or repayment of certain outstanding borrowings ( Rs.175 crore), and general corporate purposes.