Dee Development Engineers Secures ₹125 Crore from Anchor Investors

19 Jun 2024 , 09:32 AM

Piping solutions provider Dee Development Engineers Ltd announced on Tuesday that it has raised over ₹125 Crore from anchor investors ahead of its initial public offering (IPO).

The ₹418-Crore IPO will be open for subscription from June 19 to June 21.

According to a notice on the BSE’s website, the company has allocated 61.63 lakh equity shares to 19 funds at ₹203 each, totaling ₹125.1 Crore.

The anchor investors include Citigroup Global Markets Mauritius, Morgan Stanley Asia (Singapore) Pte, Aurigin Master Fund, Pinebridge Global Funds, and SBI General Insurance Company. Additionally, shares were allocated to Kotak Mahindra Mutual Fund, LIC Mutual Fund, HDFC Mutual Fund, and Aditya Birla Sun Life Mutual Fund.

The IPO consists of a fresh issue of equity shares worth ₹325 Crore and an offer-for-sale of 45.82 lakh equity shares valued at ₹93 Crore by promoter and CMD Krishan Lalit Bansal. This brings the total IPO size to ₹418 Crore. Currently, Bansal holds a 74.74% stake in the company.

The shares will be offered in the price range of ₹193 to ₹203 each.

Of the ₹325 Crore raised, ₹175 Crore will be used to pay off debt, ₹75 Crore will fund working capital requirements, and the remaining ₹75 Crore will be for general corporate purposes.

Dee Development Engineers Ltd is an engineering company that provides specialized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals, and other process industries. They offer services in engineering, procurement, and manufacturing.

The company operates seven manufacturing facilities, with three in Palwal, Haryana, one in Anjar, Gujarat, one in Barmer, Rajasthan, one in Numaligarh, Assam, and one in Bangkok, Thailand.

Their clients include JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill SA, Reliance Industries, HPCL-Mittal Energy Ltd, and Toshiba JSW Power Systems.

SBI Capital Markets and Equirus Capital are the merchant bankers managing the IPO. The company’s equity shares will be listed on the BSE and NSE.