The company’s shares are trading at a gray market premium (GMP) of Rs 50.
The company has fixed a price band of Rs 192 to Rs 203 each for the issue and the same will be a combination of fresh sale of shares of Rs 217 crore and offer for sale (OFS) of 21 lakh shares.
Around 50% of the offering is reserved for qualified institutional buyers, 35% for retail investors and the other 15% for non-institutional investors. Investors can bid for 73 shares in one lot and subsequently in multiples.
The IPO funds to the tune of Rs 95 crore will be used for working capital requirements of the company and Rs 30 crore for debt repayment; Additionally, some will be used for general corporate purposes, according to drafts presented last week.
Deepak Builders is an integrated engineering and construction company, specializing in the execution and construction of administrative and institutional buildings, hospitals and medical colleges, industrial buildings, historical memorial complexes, stadiums and sports complexes, and residential complexes. It has diversified into carrying out specialized structural work. such as flyovers, access roads, tracks under bridges, tracks over bridges and development and redevelopment of railway stations. The company executes turnkey projects consisting of architectural and structural, civil, HVAC, MEP, etc. projects. In addition to income from EPC turnkey projects at a fixed amount and item price, it also earns income from the sale of construction waste.
Its EPC projects contribute almost 45% of the total revenue, while percentage or item projects account for 30% of sales. Additionally, around 25% of revenue comes from product sales.
For FY24, revenue from operations stood at Rs 511 crore, up from Rs 433 crore a year ago. Net profit after tax more than doubled to Rs 60.4 million.
Fedex Securities is the sole lead manager of the issue.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. They do not represent the views of The Economic Times)
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.