Desco Infratech IPO: Price, Date, And GMP

Desco Infratech IPO-Complete Overview

Desco Infratech IPO under the SME IPO category is a book-build issue of Rs.30.75 Cr by Desco Infratech Limited which was incorporated in 2011. It is an infrastructure company specializing in Engineering, Planning, and Construction, primarily engaged in City Gas Distribution, Renewable Energy, Water, and Power sectors.

Governing multiple sectors like City Gas Distribution, Renewable Energy, Water, and Power, and variable Energy resources constitute a major contributor to National as well as State integrated energy planning. An organization dedicated to critical infrastructure initiatives: City gas distribution (CGD), power transmission, water supply systems, and renewable energy options.

The company is solidly focused on infrastructure development and construction of pipelines, roads, and bridges, including City Gas Distribution (CGD), renewable energy, water management, and power infrastructure.

Setting up across 55 cities in 14 states, the company has laid over 4,000 km of Medium-Density Polyethylene (MDPE) pipelines and provided over 200,000 piped natural gas connections to residential, industrial, and commercial premises.

Infrastructure services offered by the company include the design and construction of water distribution networks, open wells, sump wells, and overhead tanks.

This Desco Infratech IPO date is on 24 Mar 2025, and its ‘initial public offering’ will end on 26 Mar 2025.

 

Desco Infratech IPO Overview

The Rs.30.75 crore new SME IPO comprises an entirely fresh issue of 20.50 lac Shares.

This upcoming IPO date is from March 24 to March 26, 2025. Desco Infratech's share price is Rs.147 to Rs.150 for each Share. 

The expected IPO listing date is Tuesday, 01 April 2025, and listing at BSE and SME.

Click to open demat account and apply for the IPO.

Company Financial

(Amount in Lac)

 

Cash Flows

(Amount in lac)

 

Service-wise Revenue Breakdown  

(Amount in lac)

 

State-wise Revenue Breakdown

(Amount in lac)

 

Institution-wise Revenue Breakdown

(Amount in lac)

(Source: RHP)

 

 

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing the necessary capital expenditures to establish a company office in Surat, Gujarat.

• Financing the necessary capital expenditures for the acquisition of machinery.

• Requirements for working capital.

• General corporate purposes.
  
  

Click for the IPO application status check.

 

Peers of Desco Infratech Ltd.

 

Evaluation

The Desco Infratech IPO price is Rs.147 to Rs.150 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.6.95 from the last year, the resulting P/E ratio is 21.58x.

Considering the weighted EPS of Rs.4.69 for the last three years, the P/E ratio is 31.98x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 12.95.

In simple words, the P/E ratio of this IPO (21.58x), compared with the industry’s average P/E of 12.95x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Addresses any unnecessary experience related to the distribution and maintenance of city gas.

• Experienced proponents and management team.

• Direct Relationship with Suppliers.

• SOP is an essential component of city gas distribution contracting services.

• Safety and Compliance Standards Applications.

 

IPO’s Weaknesses

• The performance of the company is dependent on the continued services of key management and skilled personnel. The loss of these individuals may disrupt operations and plans for growth. 

• The business is capital intensive and any inability to meet working capital requirements or delays in receivables may harm liquidity and financial performance. 

• The infrastructural sector is highly competitive. Severe competition may affect margins, profitability, and market share. 

• Any delays in executing the ongoing or future projects arising from unforeseen circumstances or third-party issues may lead to cost escalation and penalty clauses.  

 

Desco Infratech IPO GMP

IPO GMP today has not started yet as of 19 Mar 2025. Hence, the Desco Infratech Limited IPO listing price (estimated) is Rs.150.

Desco Infratech Limited IPO Timetable (Tentative)

The IPO date is from March 24 to March 26, 2025, with allotment on March 27, refund initiation on March 28, and listing on Apr 01, 2025.

 

Desco Infratech IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 20,50,000 Shares (Rs.30.75 Cr).

IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,50,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.3,00,000.

 

IPO Reservation (% of Net Issue)

 

 

Promoters And Management of Desco Infratech Ltd.

• Ms. Indiraben Pruthubhai Desai

• Mr. Pankaj Pruthu Desai

• Ms. Hina Pankaj Desai

• Mr. Malhar P Desai

• Mr. Samarth Pankaj Desai.
  
  

 

IPO Lead Managers

• Smart Horizon Capital Advisors Private Limited.
  
  

Dividend Policy

The company has not paid dividends since its inception.

 

Conclusion

The company is becoming the infrastructure industry and has already gained considerable experience in city gas, power and water, and renewable energy. Desco Infratech IPO pricing seems a little on the higher side in comparison with the industry's average price band.

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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 blog is NOT any buy or sell recommendation. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in any investment or trading activities.