The Initial Public Offering (IPO) of Deepak Builders & Engineers is receiving strong attention from both retail and non-institutional investors (NIIs). This IPO, aimed at raising ₹260.04 crore, opened for subscription on Monday, October 21, and will close on Wednesday, October 23. The price band for the IPO is set between ₹192 to ₹203 per share.
IPO Details:
The public issue is split into two segments: a fresh issue of 1.07 crore shares valued at ₹217.21 crore and an offer for sale (OFS) of 21 lakh shares aimed at raising ₹42.83 crore. The company plans to utilize the funds primarily for debt repayment, working capital needs, and general corporate purposes.
KFin Technologies Limited has been appointed as the official registrar for the IPO, while Fedex Securities is acting as the lead manager.
An important factor for investors is the Gray Market Premium (GMP). According to market reports, the current GMP for Deepak Builders & Engineers is ₹61. Based on the upper price band of ₹203 per share, this translates to an expected listing price of approximately ₹264, implying a potential premium of 30.05%. While the strong GMP reflects investor enthusiasm, it is important to remember that GMP is not always a reliable indicator of future performance and should be considered alongside other key aspects such as the company’s fundamentals.
Subscription Status:
As of midday on Tuesday, October 22, the IPO had been oversubscribed by 7.46 times, indicating strong demand. According to data from the BSE, bids had been received for 6.69 crore shares against the 89.67 lakh shares available.
Retail investors showed especially high interest, with this segment being subscribed 10.80 times. Retail bids were submitted for 4.84 crore shares compared to the 44.83 lakh shares reserved for them. Additionally, the non-institutional investor (NII) segment saw a subscription rate of 8.93 times, receiving bids for 1.71 crore shares compared to the 19.21 lakh shares offered.
Key Dates and Share Allotment Process:
The IPO will remain open for subscriptions until Wednesday, October 23. Investors can apply in lots of 73 shares per lot. After the subscription period closes, the allotment of shares is expected to be finalized by Thursday, October 24. Successful bidders should have their shares credited to their demat accounts by Friday, October 25, with the stock scheduled to list on both the BSE and NSE on Monday, October 28.
Deepak Builders & Engineers India Limited has a well-established track record in constructing a wide range of buildings, including administrative, institutional, and industrial projects, as well as hospitals, stadiums, and residential complexes. The funds from this IPO will be used to reduce debt, address working capital requirements, and meet general corporate expenses, allowing the company to improve its financial stability and support its expansion efforts.
Investor Interest and Considerations:
The IPO for Deepak Builders & Engineers has generated significant interest, particularly among retail and NII investors. The strong gray market premium (GMP) of ₹61 signals positive sentiment, though potential investors should not rely solely on the GMP when making decisions. It’s important to carefully evaluate the company’s overall performance, market conditions, and personal risk tolerance before investing. While the high subscription levels reflect confidence in the business, conducting thorough research is essential for making informed investment choices.
