Dee Development Engineers sets price band at ₹193-203; IPO to open on June 19

Piping solutions company Dee Development Engineers on Wednesday announced the price band for its upcoming initial public offering (IPO), which will open for subscription on June 19. The Haryana-based company has fixed IPO price band in the range of ₹193 to ₹203 per equity share of the face value of ₹10, looking to raise ₹418 crore at the upper end of the issue price. 

Applicants can bid for a minimum of 73 equity shares and in multiples thereafter. The minimum application amount for retail investor is ₹14,819 for one lot and ₹192,647 for 13 lots, or 949 shares.

Ahead of the IPO, the anchor book will open for a day on June 20, while the three-day public issue will close on June 21. The allotment of shares to eligible applicants is expected to be finalised on June 24, while the tentative listing date has been fixed as June 26.

The IPO of Dee Development Engineers comprises fresh issue of 1.6 crore shares worth ₹325 crore and offer for sale (OFS) of 0.46 crore shares worth ₹93 crore by existing shareholders. Under the OFS, promoter Krishan Lalit Bansal will offload up to 45,82,000 equity shares.

The company proposes to utilise net proceeds from fresh issue of equity shares for funding working capital requirements (₹75 crore) in fiscal 2025 and repayment of outstanding borrowings (₹175 crore) in the current fiscal. The balance fund will be used to meet general corporate purposes.

As per the revised document filed with market regulator SEBI, the company has reserved half of the issue for qualified institutional buyers (QIB), up to 15% for non-institutional institutional investors (NII), and remaining 35% for retail investors. This offer includes a reservation of shares worth up ₹1 crore for eligible employees, which will be offered at a discount of ₹19 per equity share.

SBI Capital Markets Limited and Equirus Capital Private Limited are the Book Running Lead Managers to the offer.

Established in 1988 by Chairman & Managing Director K.L. Bansal, DEE Development Engineers is an engineering company that provides specialised process piping solutions for industries such as oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing. The company has seven manufacturing facilities located at Palwal in Haryana, Anjar in Gujarat, Barmer in Rajasthan and Bangkok in Thailand; namely, Palwal Facility I, Palwal Facility II, Palwal Facility III, Anjar Facility I, Barmer Facility and Bangkok Facility.

For the financial year ended March 31, 2023, DEE Development Engineers posted a 30.47% rise in revenue at ₹614.32 crore as compared to ₹470.84 crore in FY22. The net profit climbed by 58.25% to ₹12.97 crore from ₹8.20 crore in the previous fiscal.