Mon Oct 21 07:01:46 UTC 2024: **Summary of the News Article:**

– **Company Overview**: Deepak Builders & Engineers India Ltd., an engineering and construction firm, is set to launch its initial public offering (IPO) on Monday, aiming to raise up to Rs 260 crore.

– **IPO Details**:
– The subscription window runs from Monday to Wednesday.
– The IPO consists of nearly 1.1 crore shares in a fresh issue, valued at Rs 217.2 crore, and an offer-for-sale component of 0.21 crore shares worth Rs 42.8 crore.
– Price band is set at Rs 192 to Rs 203 per share.

– **Market Expectations**:
– As of Sunday morning, the shares had a grey market premium (GMP) of Rs 60, projecting an estimated listing price of Rs 263 per share, indicating potential listing gains of 29.5%.

– **Allocation**:
– 50% of the IPO is reserved for qualified institutional buyers, 35% for retail buyers, and 15% for non-institutional investors.

– **Use of Proceeds**:
– Rs 112 crore from the fresh issue will be allocated for working capital needs and Rs 30 crore for debt repayment. The remaining funds will be reserved for general corporate purposes.

– **Financial Performance**:
– In the fiscal year ending March 31, 2024, net revenue reached Rs 511.4 crore, up from Rs 433.5 crore in 2023.
– Net profit surged to Rs 60.4 crore, compared to Rs 21.3 crore in the previous year.
– EBITDA increased significantly, with an EBITDA margin growing from 12.2% to 22.98%.

– **Recent Quarter Performance**:
– For the quarter ended June 2024, net revenue was Rs 105.1 crore and net profit stood at Rs 14.2 crore.

– **Ownership Structure**:
– Currently, 100% of the company’s stake is owned by promoters, primarily Deepak Kumar Singal (90.04% of pre-issue shares) and Sunita Singal (9.93%).
– The offer-for-sale component includes the sale of 19.2 lakh shares by Deepak Kumar Singal and 1.9 lakh shares by Sunita Singal.

– **Lead Manager**: Fedex Securities Private Ltd is managing the IPO.

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