DEE Development Engineers Ltd IPO: Review, Date & GMP

DEE Development Engineers Limited IPO: Complete Overview

Dear readers today we are ready with IPO details of one of the big companies in India that has a diversified set of services i.e. DEE Development Engineers Limited. 

DEE Development Engineers Limited is an engineering firm founded in 1988, that offers specialized process piping solutions through design, procurement, and manufacture for the oil and gas, chemicals, electricity (including nuclear), and other process sectors.

In addition, the company produces and distributes industrial pipe fittings, pressure vessels, modular skids, high-frequency induction pipe bends, high-pressure piping systems, piping spools, longitudinally submerged arc welding pipes, and accessories.

The company's seven manufacturing sites are in Palwal, Haryana; the other five are in Anjar, Gujarat; Barmer, Rajasthan; Numaligarh, Assam; and Bangkok, Thailand.

The company hired 1,061 people as of March 31, 2024, 54 of them were highly experienced workers. 

The company is set to offer its IPO. So whosoever is interested, can take part in the upcoming DEE Development Engineers Limited IPO.

Now, we will see the details related to the offerings that would be made in this IPO.

 

 

DEE Development Engineers Limited IPO Overview

DEE Development Engineers Limited IPO is a Book Built Issue of 418.01 crores. The issue consists of an offer to sell 4,582,000 shares valued at Rs. 93.01 Cr, a fresh issue of 16,009,852 shares valued at aggregating up to Rs.325.00 Cr. Out of which 35% is allocated to retail investors, and 65% to other investors. The IPO is set to open its subscription on June 19, 2024, and close on June 21, 2024. DEE Development Engineers Limited IPO will be listed on BSE and NSE with a tentative listing date fixed as Wednesday, June 26, 2024. The price of each share is Rs.193 to Rs.203.

 

Company Financial

DEE Development Engineers Limited’s revenue exceeded 30.47% and profit after tax (PAT) increased by 58.25% in the financial year March 31, 2023 and March 31, 2022. The company has seen growth in total assets, revenue, and PAT in the period from 31 March 2022 to 31 March 2023.

• DEE Development Engineers Limited has over INR 500 crores in revenue.

• The company's net value has improved by 3.93%.

• The company's EBITDA has increased by 31.63%.

• The company's total assets have grown by 14.84%.

• The company's liabilities have gone up by 30.00%.

(Amount in Millions)

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	1171.01	966.26	845.40
Total Revenue	557.86	614.32	470.84
PAT	14.34	12.97	8.20
Net worth	428.19	413.70	401.37
Reserve & Surplus	380.23	408.17	395.85
Total Borrowings	407.14	352.62	285.36

 

 

Revenue Bifurcation

Cash Flow from Operating Activities:

Net cash flow from operating activities decreased significantly from 671.47 million on 31 March 2022, to 139.39 million on 31 March 2023.

The operating profit before performing capital changes rose substantially from 705.44 million on 31 March 2022, to 756.88 million on 31 March 2023.

Cash generated from operations decreased from 735.10 million on 31 March 2022 to 198.44 million on 31 March 2023.

Cash Flow from Investing Activities:

Net cash involved in investing activities increased to 519.73 million on 31 March 2023, from 221.46 million on 31 March 2022.

Cash flows were involved in the purchase and sale of  PPE and Intangible assets, sale of non-current investments, Interest and Dividend received, etc.

Cash Flow from Financing Activities:

Net cash flow involved in financing activities fell from 497.15 million on March 31, 2022, to 395.13 million on March 31, 2023

 

The Objective of the Issue

The company intends to utilize the Net Proceeds towards funding its following objectives:

1. Funding working capital requirements of the Company;

2. Repayment in full or in part of some outstanding loans that the company has taken out; and

3. General corporate purposes

 

Peers of DEE Development Engineers Limited IPO

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E
ISGEC Heavy Engineering Limited.	1	26.72	30.11

 

 

Evaluation

The IPO issue price is Rs. 193 to Rs.203 for each share.

Evaluation of P/E Ratio

The P/E Ratio of DEE Development Engineers Limited IPO is not available.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 30.11

 

IPO's Strengths 

• The leading participant in a market where entry barriers are high

• The largest player in process piping systems in India in terms of installed capacity, offering specialized solutions with modern manufacturing facilities strategically placed

• The company is enduring connections with customers and a robust order book

• We are a holistic solution provider for our diverse customer base, which spans industries and locations, thanks to our wide variety of specialized product offerings and services.

 

IPO’s Weaknesses 

• Customers hold the company to strict performance expectations and high standards of quality. Its reputation, business, operational results, financial situation, and cash flows could all suffer if it doesn't meet these standards or performance requirements.

• Because it uses heavy machinery in its manufacturing operations, the company is exposed to certain hazards in the manufacturing process, and its business depends on the company's manufacturing facilities.

• The majority of the Net Proceeds will be used to pay down or settle the Company's outstanding debt.

• Its operational revenue, cash flows, and financial circumstances would be negatively impacted by any downturn in the oil and gas, process, nuclear, and chemical industries.

 

IPO GMP Today

The Latest GMP of DEE Development Engineers Limited IPO is Rs.90.

 

 

DEE Development Engineers Limited IPO Timetable (Tentative)

DEE Development Engineers Limited IPO is scheduled from June 19 to June 21, 2024, with allotment on June 24, refund initiation on June 25, and listing on June 26, 2024.

Events	Date
IPO Opening Date	June 19, 2024
IPO Closing Date	June 21, 2024
IPO Allotment Date	June 24, 2024
Refund initiation	June 25, 2024
IPO Listing Date	June 26, 2024

 

DEE Development Engineers Limited IPO Details 

DEE Development Engineers Limited IPO with a face value of Rs.10 per share is set to start on June 19 and close on 21 June and will offer a fresh issue size of 16,009,852 shares (aggregating up to Rs.325.00 Cr) and offer for sale 4,582,000 shares (aggregating up to Rs.93.01 Cr)

IPO Opening & Closing Date	June 19, 2024 to June 21, 2024
Face Value	Rs.10 per share
Issue Price	Rs. 193 to Rs. 203
Lot Size	73 shares
Price of 1 lot	Rs. 14819
Issue Size	20,591,852 shares (aggregating up to Rs.418.01 Cr)
Offer for sale	4,582,000 shares (aggregating up to Rs.93.01 Cr).
Fresh issue	16,009,852 shares (aggregating up to Rs.325.00 Cr).
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

DEE Development Engineers Limited IPO Lot Details 

DEE Development Engineers Limited IPO allows retail investors to invest in a minimum and maximum of 1 lot (73 shares) at Rs.14819 while for HNI investors, the minimum lot is 14 (1022 shares) at Rs.2,07,466.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	13 lot
S-HNI (Min)	14 lot
S-HNI (Max)	67 lot
B-HNI (Min)	68 lot

 

DEE Development Engineers Limited IPO Reservation

QIB Share Portion	50%
Retail Investors’ Share Portion	35%
HNI shares offered	15%

 

Promoters and Management of DEE Development Engineers Limited IPO

• Krishan Lalit Bansal

• Ashima Bansal

• DDE Piping Components Private Limited.

 

DEE Development Engineers Limited IPO Lead Managers

• SBI Capital Markets Limited (Past IPO Performance)

• Equirus Capital Private Limited (Past IPO Performance)

 

Dividend Policy

The company has not paid any Dividends in the last three fiscal.

 

 

Conclusion

Do an extensive study on the firm, its finances, commercial prospects, and industry trends before investing in any initial public offering (IPO). DEE Development Engineers Limited’s net worth and total assets have increased. Therefore, this blog would be very beneficial to you if you are considering investing in this upcoming IPO since this log would provide you with accurate information about the company's success. If the information and statistics offered in this blog pique your interest, you may want to consider participating and benefiting from the advantages it will offer the market. 

However, before making any decisions in this regard, we suggest our potential readers to speak with their financial counselor.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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