DEE Development Engineers IPO: The initial public offering (IPO) of specialized process piping solutions provider DEE Development Engineers Ltd has been receiving strong response from investors. Today is the last day of bidding for DEE Development IPO and the issue has been heavily oversubscribed so far.
DEE Piping Systems IPO opened for subscription on June 19. The ₹418.01 crore worth IPO is a combination of fresh issue of 1.6 crore equity shares aggregating to ₹325 crore and offer for sale (OFS) component of 46 lakh shares aggregating to ₹93.01 crore.
DEE Development IPO price band has been set at ₹193 to ₹203 per share. The IPO lot size is 73 shares.
The IPO allotment is expected to be finalized on Monday, June 24, and the IPO listing date is June 26. The equity shares of DEE Development will be listed on both the stock exchanges, BSE and NSE.
The company proposes to utilise the net issue proceeds to fund working capital requirements, prepay or repay all or a portion of certain outstanding borrowings and for general corporate purposes.
SBI Capital Markets and Equirus Capital Pvt Ltd are the book running lead managers of the DEE Piping Systems IPO, while Link Intime India Private Ltd is the IPO registrar.
DEE Development IPO Subscription Status
DEE Development IPO has been subscribed 13.15 times in total so far on June 21, the third and the last day of the bidding process. The public issue has received bids for 19.65 crore equity shares as against 1.49 crore shares on the offer, according to data available on NSE till 10:45 am.
The IPO has been subscribed 10.63 times in the retail category, 0.21 times in Qualified Institutional Buyers (QIB) category, and 35.83 times in the Non Institutional Investors (NII) category so far.
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DEE Development IPO GMP Today
DEE Development shares are commanding a strong premium in the grey market. DEE Development IPO GMP today, or grey market premium today, is ₹94 per share, according to stock market observers. This indicates that DEE Development shares are trading higher by ₹94 than their IPO price of ₹203 in the grey market.
The IPO and the GMP today signals the estimated DEE Development IPO listing price of ₹297 per share, a premium of 46.31% to the issue price.
DEE Development IPO Review
DEE Development has evolved as one of the key players in process piping solutions in India, in terms of installed capacity, with a strong focus on automation and process excellence to drive operational efficiencies and offerings to its customers. DEE Development’s being a first generation entrepreneur with three decades of experience, and strong management team holding respective backgrounds, deleveraging its financial flexibility are the added advantages.
The company’s increasing focus on high margin products with additional contributions from modular skids and usage of high-grade materials, forging technology tie-ups with select global OEMs to derive consistent order flow to become a preferred partner for its clients for the next few years, Reliance Securities said.
Hence, it recommends subscribing to the DEE Development IPO.
Based on annualized FY24 earnings to post-IPO paid-up equity capital of the company, DEE Development IPO is priced at a P/E of 73X. Thus the issue appears to be fairly priced compared to peers, according to GEPL Capital.
“DEE Development is well poised to capitalized this growth. Hence, we recommend an “Subscribe” rating for the issue,” it said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
