Dee Development Engineers Files IPO Drafts to Raise Funds

3 Oct 2023 , 10:12 AM

Dee Development Engineers, a company specializing in piping solutions, has submitted draft papers to the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) to raise funds.

The IPO will consist of a fresh issue component valued at Rs 325 crore by the company and an offer-for-sale (OFS) of 79 lakh shares by promoter Krishan Lalit Bansal.

The Haryana-based firm may conduct a pre-IPO placement to raise Rs 65 crore before filing a red herring prospectus with the Registrar of Companies. If this private placement occurs, the size of the fresh issue will be reduced by the amount raised.

Proceeds from the net fresh issue will primarily be used for working capital requirements amounting to Rs 75 crore and to repay debts totaling Rs 175 crore. The remaining funds will be allocated for general corporate purposes. As of March 2023, Dee Development Engineers had a consolidated outstanding debt of Rs 352.62 crore.

The company specializes in providing specialized process piping solutions to industries such as oil and gas, power (including nuclear), chemicals, and other process industries through engineering, procurement, and manufacturing. It also manufactures piping products.

With six strategically located manufacturing facilities in Haryana, Gujarat, Rajasthan, and Thailand, Dee Development Engineers claims to be the largest player in process piping solutions in India in terms of installed capacity. Its subsidiary, DFIPL, operates a heavy fabrication facility in Gujarat and an engineering facility in Chennai.

The combined installed capacity of its manufacturing facilities is 94,500 MT per annum, with a capacity utilization rate of 43.10% for the year ended March 2023.

SBI Capital Markets and Equirus Capital are the merchant bankers handling the issue.