Deepak Builders & Engineers India IPO Price: ₹192 to ₹203 per share
IPO Dates: 21 October – 23 October 2024
Company Overview
Deepak Builders & Engineers India Limited, established in September 2017, is a dynamic and growing engineering and construction company headquartered in Punjab. The company has rapidly built a reputation for delivering a wide range of construction services, primarily focusing on the design and execution of hospitals, medical colleges, industrial buildings, administrative complexes, and institutional structures. Over the years, Deepak Builders & Engineers India has expanded its operations to include general construction projects and highly specialized engineering works.
Business Specialization
Deepak Builders & Engineers India offers expertise in various construction activities, including:
- Hospitals and medical colleges
- Administrative and institutional buildings
- Industrial buildings
- Residential complexes
- Stadiums and sports complexes
- Developmental projects such as flyovers, rail bridges, and railway stations
Key Project Types
Deepak Builders & Engineers India Limited operates across three primary business categories.
The Construction Projects division develops key facilities such as hospitals, administrative buildings, medical colleges, and industrial structures. This segment forms the core of Deepak Builders & Engineers India’s business, strongly emphasising delivering high-quality and efficient construction solutions for both public and private clients.
In the Infrastructure Projects segment, Deepak Builders & Engineers India undertakes large-scale infrastructure developments, including constructing and enhancing roads, bridges, railways, and railway stations. These projects are crucial for regional development, often involving the upgrading or redeveloping existing infrastructure to meet modern standards.
Lastly, the Sale of Products contributes to a smaller yet significant portion of Deepak Builders & Engineers India’s business. This includes the supply of various construction materials and products needed for project completion, further supporting the company’s overall operations.
Completed and Ongoing Projects
Since its inception, Deepak Builders & Engineers India has completed 17 projects with a combined contract value of ₹2,183.60 million. These include prestigious projects such as:
- Jang-E-Azadi Memorial in Kartarpur, Punjab
- Heritage Walk at the Golden Temple Corridor, Amritsar
- Super Specialty Block at Government Medical College, Patiala
- Geriatrics Block at AIIMS, New Delhi
Currently, the company is managing 12 ongoing projects, including:
- 4 hospital and medical college projects
- 1 administrative building
- 1 industrial building
- 4 railway station upgrade projects
- 2 road and bridge projects
Geographical Presence
Deepak Builders & Engineers India operates in four Indian states: Punjab, Haryana, Rajasthan, and Uttarakhand. Additionally, it has a presence in two Union Territories: Chandigarh and the National Capital Territory of Delhi.
Competitive Strengths
- High-Quality Construction: Deepak Builders & Engineers India focuses on delivering high-quality projects through the use of modern technology, efficient processes, and a skilled workforce.
- Modern Equipment: The company invests in modern construction equipment, ensuring the timely completion of projects.
- Experienced Management: The company is led by a seasoned management team with a strong track record in the construction industry.
- Government Client Base: Deepak Builders & Engineers India has established a strong presence with a robust order book that includes government contracts.
Future Growth
Deepak Builders & Engineers India has expanded its portfolio, allowing it to bid for larger, more complex projects. For example, the company has secured a contract worth ₹532.96 crore from Indian Oil Corporation for constructing a plant building in Panipat, Haryana. The company continues to focus on building its expertise in both construction and infrastructure projects, positioning itself for further growth in the coming years.
Bidding Starts In
Deepak Builders & Engineers India IPO Specifics:
| IPO Date | October 21, 2024 to October 23, 2024 |
| Listing Date | Monday, October 28, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹192 to ₹203 per share |
| Lot Size | 73 Shares |
| Total Issue Size | 12,810,000 shares (aggregating up to ₹260.04 Cr) |
| Fresh Issue | 10,700,000 shares (aggregating up to ₹217.21 Cr) |
| Offer For Sale | 2,110,000 shares of ₹10 (aggregating up to ₹42.83 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 35,880,860 |
| Share holding post issue | 46,580,860 |
Deepak Builders & Engineers India IPO Timetable (Important Dates)
| IPO Open Date | Monday, October 21, 2024 |
| IPO Close Date | Wednesday, October 23, 2024 |
| Basis of Allotment | Thursday, October 24, 2024 |
| Initiation of Refunds | Friday, October 25, 2024 |
| Credit of Shares to Demat | Friday, October 25, 2024 |
| Listing Date | Monday, October 28, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 23, 2024 |
Deepak Builders & Engineers India IPO Lot Size
Bidders have the opportunity to bid for a minimum of 73 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 73 | ₹14,819 |
| Retail (Max) | 13 | 949 | ₹1,92,647 |
| S-HNI (Min) | 14 | 1,022 | ₹2,07,466 |
| S-HNI (Max) | 67 | 4,891 | ₹9,92,873 |
| B-HNI (Min) | 68 | 4,964 | ₹10,07,692 |
Deepak Builders & Engineers India IPO Reservation
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Deepak Builders & Engineers India Limited IPO Financial Information
Deepak Builders & Engineers India Limited witnessed a notable 19% growth in revenue and a substantial 182% surge in profit after tax (PAT) from the fiscal year concluding on March 31, 2024, to March 31, 2023.
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 June 2024 |
|---|---|---|---|---|
| Assets | 322.18 | 449.3 | 558.75 | 641.1 |
| Revenue | 364.99 | 435.46 | 546.74 | 106.34 |
| Profit After Tax | 17.66 | 21.4 | 60.41 | 14.21 |
| Net Worth | 70.34 | 59.35 | 141.25 | 155.81 |
| Reserves and Surplus | 48.84 | 64.66 | 124.22 | 138.23 |
| Total Borrowing | 79.65 | 96.57 | 153.04 | 153.17 |
Key Performance Indicator – Deepak Builders & Engineers India IPO
| KPI | Values |
|---|---|
| Market Cap | ₹ 945.59 Cr. |
| EPS | ₹16.84 |
| P/E (x) | 12.06 |
| ROE | 8.48% |
| ROCE | 8.97% |
| Debt/ Equity | 0.91 |
| RoNW | 9.57% |
| P/BV | 4.68 |
Objects of the Issue:
The company plans to use the net proceeds from the fresh issue for the following purposes:
- Repayment or partial prepayment of specific borrowings taken by the company.
- Funding the company’s working capital needs.
- For general corporate purposes.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
