Deepak Builders and Engineers IPO: The Punjab-based construction company, Deepak Builders and Engineers India, is gearing up for its initial public offering debut on the stock market today. Deepak Builders and Engineers India secured ₹78.01 crore from five institutional investors through an anchor book on October 18.
The largest investor, Neomile Growth Fund, purchased 14.77 lakh shares amounting to ₹30 crore, while Citadel Capital Fund acquired 9.85 lakh shares worth ₹20 crore. Saint Capital Fund, Zeal Global Opportunities Fund, and Elite Capital Fund collectively invested ₹28 crore in exchange for 13.8 lakh shares.
The IPO price band for Deepak Builders and Engineers India has been set at ₹192 to ₹203 per equity share with a face value of ₹10 each. The subscription period for Deepak Builders and Engineers India IPO is scheduled from Monday, October 21, to Wednesday, October 23.
Deepak Builders and Engineers IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIBs), not less than 15% for non-institutional Institutional Investors (NIIs), and not less than 35% of the offer is reserved for retail investors.
Deepak Builders and Engineers India Limited was established in September 2017 and focuses on the construction of administrative, institutional, and industrial buildings, along with hospitals, stadiums, residential complexes, and various other construction ventures. The company has effectively overseen comprehensive turnkey projects involving architectural, structural, civil, MEP, firefighting systems, public health services, IT systems, operation theaters, medical gas pipelines, and landscaping.
Deepak Builders and Engineers IPO Subscription Status
Subscription for the public issue will open at 10:00 IST during Monday’s deals.
Deepak Builders and Engineers IPO Review
Swastika Investmart Ltd
The brokerage states that the issue is fairly valued. The company is an expanding engineering and construction firm located in northern India. There has been continual growth in both revenue and profitability. Risk factors include geographical concentration, intense competition, and dependence on the government. In terms of investment advice, it is suitable for long-term investors interested in gaining exposure to the Indian construction sector, provided that thorough due diligence is conducted.
Deepak Builders and Engineers IPO details
The engineering and construction firm intends to issue 1.07 crore new equity shares, along with an extra 21.1 lakh shares offered through offer-for-sale (OFS). The offer-for-sale will involve involvement from Deepak Kumar Singal and his partner, who are the promoters of the company and presently own nearly 100% stake in the company.
Deepak Builders & Engineers IPO’s book-running lead manager is Fedex Securities Pvt Ltd and the registrar for the issue is Kfin Technologies Ltd.
Deepak Builders and Engineers IPO GMP today
Deepak Builders and Engineers IPO GMP today is +60. This indicates Deepak Builders and Engineers share price was trading at a premium of ₹60 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Deepak Builders and Engineers share price is indicated at ₹263 apiece, which is 29.56% higher than the IPO price of ₹203.
According to grey market activities in the last 7 sessions, today’s IPO GMP is showing an upward trend and is anticipated to have a strong listing. As per investorgain experts, the GMP ranges from ₹11 to ₹60, with ₹11 being the lowest and ₹60 being the highest.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
