Desco Infratech IPO: Issue subscribed 27.81x on Day 3 so far; NII, retail portion fully booked. Check GMP

Desco Infratech IPO has began accepting subscriptions today, Monday, March 24, and will remain open until, Wednesday, March 26. Desco Infratech IPO price band has been set at ₹147 to ₹150 per equity share, with a face value of ₹10 each. Investors can place bids for a minimum of 1,000 equity shares, with additional bids in multiples of 1,000 shares thereafter.

Founded in January 2011, Desco Infratech Limited is an infrastructure firm that concentrates on Engineering, Planning, and Construction, especially within the City Gas Distribution, Renewable Energy, Water, and Power sectors. The organization is active in multiple areas, including City Gas Distribution, Renewable Energy, Water, and Power.

The firm excels in essential infrastructure initiatives, such as city gas distribution (CGD), power transmission, water supply systems, and renewable energy solutions. They focus on the development and construction of pipelines, roads, bridges, and other vital structures, with a strong emphasis on City Gas Distribution (CGD), renewable energy, water management, and power infrastructure.

The company has broadened its reach to more than 55 cities across 14 states, having installed over 4,000 kilometers of Medium-Density Polyethylene (MDPE) pipelines and providing more than 200,000 piped natural gas connections to residential, industrial, and commercial users. Additionally, the firm offers infrastructure services that include the design and construction of water distribution networks, open wells, sump wells, and overhead tanks.

As per the Red Herring Prospectus (RHP), the firm's listed peers are Rudra Gas Enterprise Ltd (with a P/E of 10.17), and Likhita Infrastructure Ltd (with a P/E of 15.72).

Desco Infratech IPO Subscription Status

Desco Infratech IPO subscription status is 27.81 times on day 3, so far. The retail portion was subscribed 24.9 times, and NII portion was booked 64.86 times. Qualified Institutions Buyers was booked 4.74 times.

At 13:49 IST, the company has received bids for 3,79,82,000 shares against 13,66,000 shares on offer, according to data on chittorgarh.com

Desco Infratech IPO subscription status was 2.43 times, on day 1, and the issue was subscribed 7.69 times on the day 2.

Desco Infratech IPO Details

Desco Infratech IPO consists of a fresh issue of 20,50,000 equity shares, aggregating to ₹30.75 crore. There's no offer for sale (OFS) component.

The Desco Infratech IPO aims to use the net proceeds from the offering for several purposes, including financing capital expenditures for establishing a corporate office in Surat, Gujarat; funding capital expenditures for machinery acquisition; supporting the company's working capital needs; and covering general corporate expenses.

Smart Horizon Capital Advisors Private Limited is serving as the book-running lead manager for the Desco Infratech IPO, whereas Bigshare Services Pvt Ltd acts as the registrar for this issue. Rikhav Securities Limited is designated as the market maker for the Desco Infratech IPO.

Desco Infratech IPO GMP today

Desco Infratech IPO GMP today is +15. This indicates Desco Infratech share price was trading at a premium of ₹15 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Desco Infratech share price is indicated at ₹165 apiece, which is 10% higher than the IPO price of ₹150.

According to the grey market trends from the past week, today’s IPO GMP is on the rise, signaling a positive listing. The minimum GMP recorded is ₹0.00, while the maximum GMP stands at ₹20.00.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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