Tue Oct 22 14:52:19 UTC 2024: Key Points from the Deepak Builders and Engineers IPO Article:
– **IPO Demand**: The Deepak Builders and Engineers IPO was fully subscribed within two hours, primarily due to strong demand from retail investors, who subscribed 1.7 times. Non-institutional investors subscribed 0.69 times, while qualified institutional buyers did not place any bids.
– **Bids Overview**: The total bids amounted to Rs 181.92 crore, with retail investors contributing Rs 155.06 crore and non-institutional investors accounting for Rs 26.836 crore.
– **Grey Market Activity**: The IPO is trading at a premium of 30% (approximately Rs 60 above the issue price) in the grey market, suggesting a positive listing outlook.
– **IPO Timeline and Details**: The IPO opened on October 21 and will close on October 23, aiming to raise Rs 260 crore through new shares and an Offer for Sale (OFS). The price band is set between Rs 192 and Rs 203 per share. Share allocation is expected to be finalized on October 24, with listing on NSE and BSE anticipated on October 28.
– **Company’s Financial Standing**: Deepak Builders & Engineers has a solid presence in the EPC (Engineering, Procurement, and Construction) sector and a diversified project portfolio. It faces ongoing litigations of Rs 88.4 crore, which is 6% of its total order book, yet analysts do not foresee this hindering profitability.
– **Valuation Insights**: At the upper price band, the company’s P/E ratio stands at 15.6x, with a market cap of Rs 945.5 crore post-issue and a return on net worth of 52.9%. Anand Rathi Research rates the IPO as “Subscribe,” indicating it is fairly valued.
– **Market Context**: The article briefly mentions competitors Airtel and Jio in the telecom sector, comparing their offerings, although this is less relevant to the main topic of the IPO.
First Piper 