Dee Development Engineers IPO subscribed 8.99 times

Published on Jun 20, 2024 17:12

The initial public offer (IPO) of Dee Development Engineers received 13,42,84,887 bids for shares as against 1,49,44,944 shares on offer, according to stock exchange data at 17:00 IST on Thursday (20 June 2024). The issue was subscribed 8.99 times.

The issue opened for bidding on Wednesday (19 June 2024) and it will close on Friday (21 June 2024). The price band of the IPO is fixed at Rs 193 to 203 per share. An investor can bid for a minimum of 73 equity shares and in multiples thereof.

The initial public offer comprises fresh issue of equity shares aggregating upto Rs 325 crore and the offer for sale of 45,82,000 equity shares.

Of the net proceeds of the offer, about Rs 75 crore will be used for funding working capital requirements of the company; Rs 175 crore for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company; and balance for general corporate purposes. Total borrowings as end of Dec 2024 stood at Rs 386.19 crore.

Ahead of the IPO, Dee Development Engineers on Tuesday, 18 June 2024, raised Rs 125.10 crore from anchor investors. The board allotted 61.62 lakh shares at Rs 203 each to 19 anchor investors.

Dee Development Engineers (DDEL) is an engineering company providing specialized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing.

As part of its specialized process piping solutions, it 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 including, boiler superheater coils, de-super heaters and other customized manufactured components.

The firm reported a net profit of Rs 14.34 crore and net sales of Rs 545.55 crore for the nine months ended on 31 December 2023.