Manufacturing Bharat

We Can Cover You

We Can Cover You

Written by 3:24 am Manufacturing Sector News

Deepak Builders IPO: What grey market premium signals ahead of D-street debut

Shares of Deepak Builders & Engineers Ltd. will be listed on the BSE and NSE on Monday, October 28, after a 41.54 times subscription for its ₹260.04 crore offer.

The company’s shares experienced significant volatility in its grey market premium (GMP). According to market observers, the premium for Deepak Builders’ shares dropped sharply to ₹32 from ₹50 per share earlier.

Non-Institutional Investors (NIIs) placed the highest bids for the Deepak Builders’ IPO, with a subscription rate of 82.47 times, followed by retail investors at 39.79 times, and the Qualified Institutional Buyers’ (QIBs) portion stood at 13.91 times.

The company has already raised ₹78 crore from institutional investors via the anchor book.
Analysts had recommended investors to subscribe to the IPO for long-term, as it is priced at fair valuations.

The proceeds from the IPO, amounting to ₹95 crore, will be used for the company’s working capital requirements, ₹30 crore for debt repayment, and a portion will be used for general corporate purposes.

Deepak Builders is a construction company established in 2017, classified into three verticals: construction project business, infrastructure project business and the sale of products.

Currently, the company that undertakes construction and infrastructure projects has 12 ongoing projects including seven EPC projects and five item-rate or percentage rate contracts.

The company’s order book stood at ₹1,380 crore as of June 2024, of which 66% projects are from railways segment.

For FY24, revenue from operations came in at ₹511 crore, up from ₹433 crore a year ago. The company’s net profit after tax more than doubled to ₹60.4 crore.

Source link

Visited 2 times, 1 visit(s) today
[mc4wp_form id="5878"]