Deepak Builders & Engineers Limited, a leading construction and engineering company in India, is set to launch its Initial Public Offering (IPO) in October 2024.

Key Details:

• Issue Type: Main Board IPO
• Total Issue Size: ₹260.04
• Fresh Issue:₹217.21 Cr
• Offer For Sale: ₹42.83 Cr
• Lot Size:73 Shares
• Face value:₹10 per share
• Price Band:₹192 to ₹203 per share
• Issue Open Date: October 21, 2024
• Issue Close Date: October 23, 2024
• Listing Date: October 28, 2024
• Registrar: Kfin Technologies Limited

Timeline

IPO Open Date:	21 Oct 2024
IPO Close Date:	23 Oct 2024
Basis of Allotment:	24 Oct 2024
Refunds:	25 Oct 2024
Credit to Demat Account:	25 Oct 2024
IPO Listing Date:	28 Oct 2024

About Company

Deepak Builders & Engineers Limited is a construction and engineering company based in Delhi, India. They specialize in executing large-scale projects for both the government and private sectors.

Core Business:

• Construction and Engineering: Deepak Builders & Engineers offers a wide range of construction and engineering services, including building construction, infrastructure development, and other related projects.

Market Position:

• Deepak Builders & Engineers has a strong presence in the Indian construction and engineering market, particularly in the Delhi-NCR region.
• The company has a reputation for delivering high-quality projects on time and within budget.

Future Outlook:

• The company may also invest in new technologies to improve efficiency and productivity.
• The Indian construction and engineering sector is expected to continue growing, driven by urbanization, industrialization, and infrastructure development.
• Deepak Builders & Engineers aims to expand its operations, diversify its project portfolio, and explore new market opportunities.

Read DRHP Here

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Objective

The primary objectives of the Deepak Builders & Engineers Limited IPO are:

1. Raising Capital: The company aims to raise ₹650 crores through the IPO, which will be used for:
   • Expansion: Funding the expansion of operations and the development of new projects.
   • Working Capital: Meeting the day-to-day operational expenses of the business.
   • General Corporate Purposes: Supporting other growth initiatives and strategic investments.
2. Brand Visibility: The IPO will increase the visibility of Deepak Builders & Engineers among investors and the general public, enhancing its brand recognition and credibility.
3. Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.

By achieving these objectives, Deepak Builders & Engineers Limited aims to strengthen its financial position, expand its business, and enhance its market presence.

POSITIVE

• Established Player: Deepak Builders & Engineers has a strong presence in the Indian construction and engineering market.
• Diverse Project Portfolio: The company offers a wide range of construction and engineering services, reducing dependence on any single sector.
• Track Record: A strong track record of delivering high-quality projects on time and within budget..

NEGATIVE

• Economic Downturns: The construction industry can be sensitive to economic fluctuations, impacting demand for projects.
• Regulatory Changes: Changes in government policies or regulations related to construction can affect the industry.
• Competition: The construction and engineering market is competitive, with both domestic and international players.

Financial Review of Deepak Builders & Engineers

So, How Does Deepak Builders & Engineers IPO Fare in Terms of Financials ?

Period Ended	30 Jun 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	641.1	558.75	449.3	322.18
Revenue	106.34	516.74	435.46	364.99
Profit After Tax	14.21	60.41	21.4	17.66
Net Worth	155.81	141.25	89.35	70.34
Reserves and Surplus	138.23	124.22	64.66	48.84
Total Borrowing	153.17	153.04	96.57	79.65
Amount in ₹ Crore

Key Observations:

• Revenue Growth: The company has experienced significant revenue growth, particularly from Q1 2024 to Q2 2024, indicating strong project execution and increased market share.
• Profitability: Profit after tax (PAT) has also increased, although at a slower pace than revenue. This suggests that the company is managing costs effectively.
• Asset Growth: Assets have grown steadily over the past two years, reflecting investments in the business.
• Net Worth and Reserves: A healthy increase in net worth and reserves suggests a strong financial position.
• Debt: Total borrowing has remained relatively stable, indicating prudent financial management.

Deepak Builders & Engineers IPO Valuation :

KPI	Values
ROE	8.48%
ROCE	8.97%
Debt/Equity	0.91
RoNW	9.57%
P/BV	4.68
PAT Margin (%)	13.52

SWOT Analysis: Deepak Builders & Engineers IPO

Strengths

• Established Player: Deepak Builders & Engineers is a well-established construction and engineering company with a strong track record.
• Diverse Project Portfolio: The company offers a wide range of construction and engineering services, reducing dependence on any single sector.
• Market Presence: Has a strong presence in the Indian construction and engineering market, particularly in the Delhi-NCR region.

Weaknesses

• Established Player: Deepak Builders & Engineers is a well-established construction and engineering company with a strong track record.
• Diverse Project Portfolio: The company offers a wide range of construction and engineering services, reducing dependence on any single sector.
• Market Presence: Has a strong presence in the Indian construction and engineering market, particularly in the Delhi-NCR region.

Opportunities

• Growing Construction Market: The Indian construction sector is expected to grow, driven by urbanization and infrastructure development.
• Diversification: Exploring new market segments or geographic areas for expansion.
• Technology Adoption: Leveraging technology for improved project management, efficiency, and sustainability.

Threats

• Economic Slowdowns: A slowdown in the economy can impact demand for construction projects.
• Rising Material Costs: Increases in the cost of raw materials and labor can affect profitability.
• Regulatory Challenges: Stricter regulations or compliance requirements can increase operational costs.

COMPETITIVE ANALYSIS: MARKET PEERS

Key Competitors

• Larsen & Toubro Limited (L&T): One of the largest engineering and construction conglomerates in India.
• Tata Projects Limited: A subsidiary of the Tata Group, offering a wide range of construction and engineering services.
• Shapoorji Pallonji Group: A diversified business group with a strong presence in construction, real estate, and power generation.
• NCC Limited: A leading construction company specializing in infrastructure projects.
• GMR Infrastructure Limited: A diversified infrastructure company with interests in construction, energy, and airports.

Deepak Builders & Engineers IPO GMP

• Grey market premium as on 23-10-2024 = ₹61 /Share

Disclaimer:

• IPO Grey Market Premium (Deepak Builders & Engineers IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Deepak Builders & Engineers IPO

🔴 Live Subscription Status 🔴

23/10/2024 5:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	25,62,061	0.52	1.08	13.91
Non Institutional Investors(NIIs)	19,21,500	4.28	17.39	82.47
Retail Individual Investors(RIIs)	44,83,500	6.22	15.93	39.79
Total	89,67,061	4.18	12.00	41.54

FINAL TAKEAWAY

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