The Deepak Builders & Engineers India Limited(DBEIL) IPO opened today, October 21, 2024, sparking considerable interest among various investor categories. With the public issue aiming to raise approximately ₹260.04 crores through the sale of 12.81 million equity shares, the IPO is priced in the range of ₹192-203 per share. Here’s an overview of the key details, current subscription status, DBEIL GMP and company highlights to help investors make informed decisions.
Deepak Builders IPO Subscription Status(DBEIL): Day 2
The IPO has seen a strong response across multiple investor categories, with an overall subscription of 12 times as of the end of the day 2. Below is a detailed breakdown:
Deepak Builders IPO Subscription Status (Day 2)
| Category | Subscription (Times) |
|---|---|
| Qualified Institutional Buyers (QIB) | 1.08x |
| Non-Institutional Investors (NII) | 17.39x |
| – Small NII (Below ₹10L) | 23.5x |
| – Big NII (Above ₹10L) | 14.34x |
| Retail Individual Investors (RII) | 15.94x |
| Total Subscription | 12x |
Price Band: ₹192-203 per share
IPO Closing Date: October 23, 2024
The retail segment showed the strongest interest with a 15.94 times subscription, reflecting significant enthusiasm from smaller investors. The NII category, including both small and large bidders, also exhibited healthy demand, with an overall subscription of 17.39 times. On the other hand, the QIB portion was less subscribed, at only 1.08 times.
DBEIL GMP Today
| Date | Grey Market Premium (₹) | Estimated Listing Price (₹) | Premium Percentage Over Issue Price |
|---|---|---|---|
| October 18, 2024 | 32 | 235 | 15.76% |
| October 19, 2024 | 35 | 238 | 17.24% |
| October 20, 2024 | 40 | 243 | 19.70% |
| October 21, 2024 | 60 | 263 | 29.56% |
Deepak Builders IPO Allotment Status
Allotments will be updated on 24th October.
DBEIL Company Background and Financial Highlights
Deepak Builders & Engineers India Ltd. is a construction and infrastructure development company specializing in various engineering, procurement, and construction (EPC) projects. It has a strong presence in railway construction, which accounts for approximately 66% of its order book. The company has grown rapidly, with a 19% increase in revenue and a remarkable 182% jump in profit after tax (PAT) from FY 2023 to FY 2024.
| Financial Metric | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|
| Revenue (₹ Crore) | 516.74 | 435.46 | 364.99 |
| Profit After Tax (₹ Crore) | 60.41 | 21.4 | 17.66 |
| Assets (₹ Crore) | 641.1 | 558.75 | 449.3 |
| Net Worth (₹ Crore) | 155.81 | 141.25 | 89.35 |
| Debt-to-Equity Ratio | 0.91 | – | – |
The company also boasts an order book valued at over ₹1,380 crores, providing strong revenue visibility for the coming years.
DBEIL IPO Details and Timeline
- Issue Open Date: October 21, 2024
- Issue Close Date: October 23, 2024
- Allotment Date: October 24, 2024
- Refund Initiation Date: October 25, 2024
- Shares Credited to Demat Accounts: October 25, 2024
- Listing Date: October 28, 2024
- Listing Exchanges: BSE and NSE
Strategic Considerations
While the company’s financial growth appears impressive, some analysts have raised concerns regarding the sudden increase in profit margins and pending litigation amounting to over ₹87 crore. These factors could pose risks for potential investors. However, the robust order book and growth in the infrastructure sector make it an attractive long-term investment option, especially for investors willing to take moderate risks.
Overall, the Deepak Builders IPO has generated notable interest, especially among retail investors. As the subscription period progresses, it will be crucial to observe whether institutional interest picks up to ensure a successful listing.