Dee Development Engineers files DRHP with SEBI to raise funds via IPO; check details

Dee Development Engineers Ltd has filed its draft red herring prospectus (DRHP) papers with capital markets regulator Securities and Exchange Board of India (SEBI) to mop up funds through an initial public offering (IPO). 

The company plans to raise funds through offer of equity shares (face value ₹10 each) through initial public offerings. The initial share sale comprises fresh issuance of equity shares worth ₹325 crore and an offer for sale of 79 lakh equity shares by a promoter Krishan Lalit Bansal, according to the piping solutions provider.

Currently, Bansal owns 74.74 per cent stake in the company. In addition, the Haryana-based firm company may consider mobilising ₹65 crore in a pre-IPO placement round. If such placement is undertaken, the fresh issue size will be reduced.

The company proposes to utilize net proceeds from fresh issue towards- Funding working capital requirements of Company; Prepayment or repayment of all or a portion of certain outstanding borrowings availed by Company and its Subsidiaries, DEE Piping Systems (Thailand) Co. Limited and DEE Fabricom India Private Limited; and General corporate purposes.

Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

SBI Capital Markets and Equirus Capital have been appointed as merchant bankers to manage the company's maiden public issue. Equity shares of the engineering company will be listed on stock exchanges BSE and NSE after the conclusion of the IPO.

Dee Developments is an engineering company providing specialised process piping solutions for industries such as oil and gas, power -including nuclear, chemicals and other process industries through engineering, procurement, and manufacturing.

The company has six manufacturing facilities at Palwal in Haryana, Anjar in Gujarat, Barmer in Rajasthan, and Bangkok in Thailand. The customers include JGC Corporation, Nooter/Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill S A, Reliance Industries, HPCL–Mittal Energy Ltd, and Toshiba JSW Power Systems.