DEE Development IPO Day 2: From core business to financials, here are 10 key things to know from RHP before investing

  • Dee Development IPO: The issue's price band has been set in the range of 193 to 203 apiece. The subscription period will begin on Wednesday, June 19, and end on Friday, June 21. DEE Development plans to use IPO proceeds for working capital, debt repayment, and general corporate purposes.

Dhanya Nagasundaram
Updated20 Jun 2024, 02:47 PM IST
DEE Development IPO: Piping solutions provider DEE Development Engineers Ltd is all set to debut on Wednesday, June 19.
DEE Development IPO: Piping solutions provider DEE Development Engineers Ltd is all set to debut on Wednesday, June 19. (https://www.deepiping.com/)

DEE Development IPO: Piping solutions provider DEE Development Engineers Ltd opened on Wednesday, June 19. The DEE Development IPO, with a price range of 193-203 per share, will close on June 21. Bids can be placed for a minimum of 73 equity shares and multiples of 73 equity shares thereafter.

50% of the issue size has been set aside for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors. Furthermore, investors may bid for a minimum of 73 equity shares and multiples thereof.

DEE Developments Engineers is an engineering firm that provides specialist process pipe solutions for the oil and gas, electricity (including nuclear), chemicals, and other process sectors through designing, procurement, and manufacture.

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

DEE Development's 418 crore IPO includes a fresh issue of 325 crore and an offer-for-sale (OFS) of 4,582,000 equity shares by promoter Krishan Lalit Bansal.

Tentatively, the basis of allocation of shares for the DEE Development IPO will be settled on Monday, June 24, and the business will commence refunds on Tuesday, June 25, with shares credited to allottees' demat accounts the same day. DEE Development's share price is expected to be listedon the BSE and NSE on Wednesday, June 26.

Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.

DEE Development IPO Promoters

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

DEE Development IPO Promoters detials

DEE Development IPO Peers

ISGEC Heavy Engineering Ltd is the company's listed peer (with a P/E ratio of 42.40).

DEE Development IPO Objects

The firm plans to use the net proceeds from the new issuance to meet working capital requirements ( 75 crore), repay outstanding borrowings ( 175 crore), and for general corporate purposes.

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

DEE Development Engineers Business

The company is an engineering firm that offers specialised process pipe solutions to sectors such as oil and gas, electricity (including nuclear), chemicals, and others through engineering, procurement, and manufacture. In addition to their specialised process piping solutions, the company manufactures and supplies piping products such as high-pressure piping systems, piping spools, high frequency induction pipe bends, Longitudinally Submerged Arc Welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids, and accessories such as boiler superheater coils, de-super heaters, and other customised manufactured components.

DEE Development Industry

India's manufacturing sector has grown rapidly in recent decades as a result of a combination of supportive policy measures, market-friendly reform measures, and changes in the global economic landscape (particularly the rise in outsourcing, which has shifted manufacturing from developed to developing economies).

These variables have resulted in significant rise in industrial production. The manufacturing sector's Gross Value Added (GVA) increased from around 1,502 thousand crores in FY 2012 to roughly 2,617 thousand crores in FY 2023.

DEE Development Engineers manufacturing facilities

The firm has manufacturing facilities in Palwal, Haryana, Anjar, Gujarat, Barmer, Rajasthan, and Bangkok, Thailand. These are Palwal Facility I, Palwal Facility II, Palwal Facility III, Anjar Facility I, Barmer Facility, Numaligarh Facility, and Bangkok Facility.

Also Read: Falcon Technoprojects IPO to open on June 19; check price band, issue size, key dates

DEE Development key risks

  • Any slowdown in the oil and gas, power (including nuclear), process, and chemical sectors would have a negative impact on our revenue, cash flows, and financial situations.
  • The majority of the net profits will be used to repay or pre-paymentobligations incurred by the company.

DEE Development Engineers Financials

Between the fiscal years ending March 31, 2023 and March 31, 2022, DEE Development Engineers Limited had a 30.47% rise in revenue and a 58.25% increase in profit after tax.

DEE Development Subsidiaries

DEE Fabricom India Private Ltd, Malwa Power Private Ltd, and the Atul Krishan Bansal Foundation are the company's Indian subsidiaries, while DEE Piping Systems (Thailand) Co Ltd is the overseas subsidiary.

Lock-in of equity shares allotted to anchor investors

Anchor Investors will have 50% of their equity shares locked in for 90 days from the date of allotment, while the remaining 50% will be locked in for 30 days.

Also Read: GEM Enviro IPO price band set at 71 - 75 per share; SME IPO to open on June 19

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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First Published:20 Jun 2024, 02:47 PM IST
HomeMarketsIPODEE Development IPO Day 2: From core business to financials, here are 10 key things to know from RHP before investing

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