Deepak Builders and Engineers, a construction company based in Punjab, launched its Initial Public Offering (IPO) on October 21. The IPO has gained considerable attention from investors, as subscription numbers reflect strong demand. Investors now have until October 23 to subscribe, with the offer expected to attract both retail and institutional buyers. Here is a detailed look at the IPO’s performance so far, its Grey Market Premium (GMP), and key details for potential investors.
According to data from the Bombay Stock Exchange (BSE), the Deepak Builders and Engineers IPO was subscribed 55% by the end of its first day of subscription. Out of the 89,67,061 shares available in the offer, investors bid for 48,99,103 shares. This strong start indicates the high level of interest in the IPO, especially among retail investors.
Retail investors showed the most enthusiasm, with their portion of the IPO receiving 91% subscription on the first day. On the other hand, non-institutional investors (NIIs) subscribed to 43% of their allocated shares. Meanwhile, the portion reserved for Qualified Institutional Buyers (QIBs) had not been fully booked yet, but there is optimism that these investors will participate as the subscription period progresses.
Key Details of the Deepak Builders and Engineers IPO
- IPO Price Band: ₹192 to ₹203 per share
- Face Value: ₹10 per equity share
- Subscription Period: October 21, 2024, to October 23, 2024
- Offer Size: Not more than 50% of shares for QIBs, not less than 15% for NIIs, and 35% for retail investors
- Listing Exchange: Shares will be listed on a stock exchange soon after the subscription period ends
The price band of the IPO is set between ₹192 to ₹203 per share, with a face value of ₹10. The company aims to raise funds from institutional and retail investors, with specific quotas set for each category. Retail investors are especially interested due to the moderate price range and the potential for profit from the company’s strong growth prospects.
As of today, the Grey Market Premium (GMP) for Deepak Builders and Engineers IPO is ₹60, indicating that the company’s shares are being traded at a ₹60 premium over the upper price band of ₹203 in the grey market. This suggests that investors expect the shares to list at a higher price, making the IPO attractive to those looking to earn quick profits from the listing gains.
The current estimated listing price, based on the grey market activity, is ₹263 per share, which is approximately 29.56% higher than the IPO’s upper price band of ₹203. The positive sentiment in the grey market indicates that the IPO may have a strong listing on the stock exchange.
Founded in 2017, Deepak Builders and Engineers is a well-known player in the construction industry, handling a variety of projects, including institutional, residential, and commercial buildings. The company has successfully completed several large-scale construction projects, including hospitals, schools, stadiums, and residential complexes.
Their expertise includes not only structural construction but also comprehensive project management services such as MEP (mechanical, electrical, plumbing), IT systems, firefighting systems, and public health services. This has positioned the company well in the rapidly growing infrastructure sector in India, making it an appealing investment opportunity for those looking to invest in the country’s infrastructure development.
Whether or not to subscribe to the Deepak Builders and Engineers IPO depends on your individual investment goals. The strong first-day subscription numbers and rising GMP reflect positive sentiment, but investors should carefully evaluate the company’s financials, growth potential, and the overall market conditions before making a decision.
Deepak Builders and Engineers’ IPO has opened on a strong note, with 55% of the shares already subscribed on the first day. The Grey Market Premium and investor demand suggest that the IPO may offer good listing gains. However, as with all investments, potential investors should exercise caution and conduct thorough research before subscribing.
