Tue Oct 22 16:06:49 UTC 2024: **Summary of Deepak Builders & Engineers IPO News Article:**

– **IPO Details:**
– The IPO of Deepak Builders & Engineers, amounting to ₹260.04 crore, opened for subscription on October 21 and will close on October 23.
– Price band set between ₹192 and ₹203 per share.
– It includes a fresh issue of 1.07 crore shares (raising ₹217.21 crore) and an offer for sale (OFS) of 21 lakh shares (raising ₹42.83 crore).
– Proceeds will be used to pay off debt, fund working capital, and for general corporate purposes.

– **Subscription Status:**
– As of October 22 (second day of subscription), the IPO was subscribed 7.46 times.
– Retail investor segment subscribed 10.80 times, while the non-institutional investors (NII) segment was subscribed 8.93 times. The Qualified Institutional Buyer (QIB) segment was subscribed 0.52 times.
– Last grey market premium (GMP) indicated estimated listing price of ₹264, a 30.05% premium over the upper price band.

– **Company Profile:**
– Deepak Builders & Engineers specializes in constructing various structures, including hospitals, residential complexes, and infrastructure projects.
– Strong order book of ₹13,803.9 million, with 92% of FY24 revenue expected from government-related projects.

– **Market Outlook:**
– The construction industry in India is projected to reach $1.4 trillion by 2025, driven by urbanization and government initiatives like Gati Shakti and Bharatmala.
– The company has a proven track record with 76 completed projects and Class I (Super) Contractor accreditation.

– **Analyst Recommendations:**
– Analysts recommend subscribing to the IPO for medium- to long-term investment, noting the company’s attractive pricing (P/E of 12.1 on the upper band based on FY24 earnings) and potential for growth.

– **Important Dates:**
– Share allotment is set for October 24, with shares expected in demat accounts by October 25, and potential listing on BSE and NSE on October 28.

Overall, the article highlights a strong market response to the IPO and the growth potential of Deepak Builders & Engineers amidst India’s booming construction sector.

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