Dee Development Engineers IPO: Price band set at ₹193-203 per share; check issue details, key dates, more

Dee Development Engineers IPO: The engineering company's Dee Development IPO price band has been fixed in the range of ₹193 to ₹203 per equity share of the face value of ₹10. The subscription period will begin on Wednesday, June 19, and end on Friday, June 21. The allocation to anchor investors for the Dee Development Engineers IPO is scheduled to take place on Tuesday, June 18.

The floor price is 19.3 times the face value of the equity shares and the cap price is 20.3 times the face value. Bids can be made for a minimum of 73 equity shares and in multiples of 73 equity shares thereafter. 

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Dee Development IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. A discount of ₹19 per equity share is being offered to eligible employees bidding in the employee reservation portion.  

Dee Development Engineers is an engineering firm that provides specialist process pipe solutions to sectors such as oil and gas, electricity (including nuclear), chemicals, and others through engineering, procurement, and manufacture. With over three and a half decades of manufacturing expertise, the firm has been able to effectively develop its business by using its brand, strategically positioned production facilities, and engineering capabilities.

The price to earnings ratio (P/E) based on basic and diluted EPS for financial year ended 2023 for the company at the upper end of the price band is as high as 82.86 times and at the lower end of the price band is 78.78 times as compared to the average industry peer group P/E ratio of 42.40 times. 

As per the red herring prospectus (RHP), the company's listed peer is ISGEC Heavy Engineering Ltd (with a P/E of 42.40).

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DEE Development Engineers Limited's revenue climbed by 30.47%, while profit after tax (PAT) increased by 58.25% during the fiscal years ending March 31, 2023 and March 31, 2022.

Tentatively, Dee Development IPO basis of allotment of shares will be finalised on Monday, June 24, and the company will initiate refunds on Tuesday, June 25, while the shares will be credited to the demat account of allottees on the same day following refund. Dee Development share price is likely to be listed on BSE and NSE on Wednesday, June 26.

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Dee Development Engineers IPO details 

Dee Development IPO, which is worth ₹418 crore, comprises a fresh issue of ₹325 crore, and an offer-for-sale (OFS) of 4,582,000 equity shares by the promoter Krishan Lalit Bansal.

The company's promoters are Krishan Lalit Bansal, Ashima Bansal, and DDE Piping Components Private Limited.

The firm intends to use the net proceeds from the new issuance to meet the following objectives: the company's working capital requirements ( ₹75 crore); the prepayment or repayment of all or a portion of certain outstanding borrowings obtained by the company ( ₹175 crore); and general corporate purposes.

SBI Capital Markets Limited and Equirus Capital Private Limited are the book-running lead managers for the DEE Piping Systems IPO, with Link Intime India Private Ltd serving as the registrar.

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