DEE Development Engineers gets listed at 67% premium

26 Jun 2024 , 09:52 AM

Shares of DEE Development Engineers, a piping solutions provider, debuted on the stock markets with a notable 67% premium. The shares opened at ₹339 on the NSE, significantly higher than the issue price of ₹203. On the BSE, they listed at ₹325, reflecting a 60.10% premium.

The ₹418-Crore public issue, which was open for subscription from June 19-21, saw an overwhelming response, being subscribed 99.56 times. Qualified institutional buyers (QIBs) subscribed 201.91 times their allotted quota, non-institutional investors (high net-worth individuals) subscribed 144 times, and retail investors subscribed 23.42 times their portions. Additionally, the employee portion was subscribed 44.73 times.

The IPO included a fresh issue of ₹325 Crore and an offer-for-sale of 45.82 lakh equity shares, totaling ₹93.01 Crore at the upper price band of ₹193-203 per share.

DEE Development Engineers specializes in providing process piping solutions for industries such as oil and gas, power (including nuclear), chemicals, and other process sectors through engineering, procurement, and manufacturing services.

Financially, DEE Piping Systems reported a 58.3% year-on-year growth in net profit, reaching ₹13 Crore for the fiscal year ending March FY23. The company’s revenue also increased by 29.2%, totaling ₹595.5 Crore compared to the previous year. For the nine-month period ending December 2023, the company posted a profit of ₹14.34 Crore on revenue of ₹545.6 Crore.

The proceeds from the fresh issue will be allocated for working capital requirements (₹75 Crore), debt repayment (₹175 Crore), and general corporate purposes. As of December 2023, the company had a debt of ₹407.1 Crore on its books.