IPO Details

• Type: Main Board IPO
• Issue Size: ₹418.01 Crore
• Offer: Combination of fresh issue of ₹325.00 Crore and
• Offer for Sale (OFS) of ₹93.01 Crore equity shares of ₹10 face value
• Price Band: ₹193 – ₹203 per share
• Minimum Order Quantity: 73 Shares
• Issue Open Date: June 19, 2024 (Wednesday)
• Issue Close Date: June 21, 2024 (Friday)
• Expected Listing Date: June 26, 2024 (Tentative)
• Lead Managers: ICICI Securities Limited, SBI Capital Markets Limited (and syndicate members)
• BSE Code (to be assigned after listing): Not available yet
• NSE Code (to be assigned after listing): Not available yet

DEE Piping Systems IPO Timeline

IPO Open Date:	June 19, 2024
IPO Close Date:	June 21, 2024
Basis of Allotment:	June 24, 2024
Refunds:	June 25, 2024
Credit to Demat Account:	June 25, 2024
IPO Listing Date:	June 26, 2024

About Company

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DEE Development Engineers Limited manufactures and supplies piping systems, prefabrication spools, and structural products for various industrial applications, including power plants, refineries, and oil & gas sectors. They operate manufacturing facilities in India and cater primarily to the domestic market. The company has reported a revenue of ₹528.1 crore for the fiscal year ending March 31, 2023.

OBJECTIVE

• Funding working capital requirements of the Company;
• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company; and
• General corporate purposes

POSITIVE

• Growing Industrial Demand: The Indian power, oil & gas, and refinery sectors are expected to experience growth, potentially driving demand for DEE’s piping products.
• Focus on Niche Market: DEE caters to a specific segment within the industrial sector, potentially offering some product specialization advantages.
• Experienced Management Team: A seasoned management team with experience in the piping industry can be a positive factor.

NEGATIVE

• Valuation: Without access to the IPO prospectus, it’s difficult to determine if the offered price band reflects a fair valuation.
• Limited Geographical Reach: DEE primarily focuses on the domestic market, making them susceptible to fluctuations in the Indian economy.
• Competition: The industrial piping sector is competitive with established players and potential new entrants vying for market share.

So, how does DEE Piping Systems IPO Fare in Terms of Financials ?

Financial Details

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	1,171.01	966.26	845.40	835.88
Revenue	557.86	614.32	470.84	513.03
Profit After Tax	14.34	12.97	8.20	14.21
Net Worth	428.19	413.70	401.37	448.50
Reserves and Surplus	380.23	408.17	395.85	432.81
Total Borrowing	407.14	352.62	285.36	257.17
Amount in ₹ Crore

FINANCIAL REVIEW

Positives:

• Revenue Growth: The company shows a steady increase in revenue (7.1% year-over-year) in the latest period (ending Dec 2023), indicating some business expansion.
• Profitability: Profit after tax (PAT) has remained positive throughout the period, demonstrating consistent profitability.

DEE Piping Systems IPO Valuation :

Earning Per Share (EPS):	₹2.45  per Equity Share
Price/Earning P/E Ratio:	83
Return on Net Worth (RoNW):	3.14%%
Net Asset Value (NAV):	₹79.87 per Equity Share

IPO – SWOT Analysis

Strengths

• Industry Growth Potential: The Indian power, oil & gas, and refinery sectors are expected to experience growth, creating a potential tailwind for DEE’s piping products.
• Product Specialization: Focusing on a niche market segment within the industrial piping sector allows DEE to develop expertise and potentially enjoy some competitive advantages.
• Experienced Management: A seasoned management team with a proven track record in the piping industry can provide strategic direction and industry knowledge.

Weaknesses

• Limited Geographic Reach: DEE’s primary focus on the domestic market makes them vulnerable to economic fluctuations in India and limits their growth potential in a broader global market.
• Dependence on Few Customers: With the top 10 customers contributing a significant portion (66.18%) of their revenue, DEE is susceptible to losing a major client or changes in their ordering patterns.
• High Entry Barriers: The industrial piping industry requires substantial capital investment for manufacturing facilities and skilled labor, potentially hindering new entrants but also limiting DEE’s own ability to rapidly expand production capacity.

Opportunities

• Export Market Expansion: DEE can explore opportunities to export their piping systems to other countries with growing industrial sectors.
• Product Diversification: Expanding their product portfolio beyond core piping systems to include valves, flanges, or other related components can increase market share and revenue streams.
• Strategic Partnerships: Collaboration with engineering, procurement, and construction (EPC) companies can provide access to new project opportunities.

Threats

• Competition: The industrial piping sector is competitive, with established players and potential new entrants vying for market share. Price competition and competition for skilled labor can pose challenges.
• Raw Material Price Fluctuations: DEE’s profitability can be impacted by fluctuations in the prices of steel and other raw materials used in their products.
• Regulatory Changes: Stringent environmental regulations or safety standards can increase production costs or limit their ability to operate in certain locations

COMPETITIVE ANALYSIS: MARKET PEERS

Here are some of the key market peers of DEE Piping Systems IPO :

Peers:

• Kellogg, Brown & Root (KBR) Limited: A global engineering, procurement, and construction (EPC) company offering piping solutions for various industries, including power and oil & gas.
• Larsen & Toubro Limited (L&T): A large Indian conglomerate with a dedicated engineering and construction (E&C) division that undertakes projects involving industrial piping systems.
• Bhadra भुजबल Industries Limited: Another prominent Indian player specializing in the manufacturing and supply of industrial piping systems and valves.

DEE Piping Systems IPO GMP

• Grey market premium as on 19-06-2024 = Rs 40 / Share

Disclaimer:

• IPO Grey Market Premium ( DEE Piping Systems 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.
• Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.

DEE Piping Systems IPO

🔴 Live Subscription Status 🔴

19/06/2024 10:00 AM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Total

FINAL TAKEAWAY

✅ Updated Soon

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