DEE Development Engineers IPO

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19th – 21st Jun 2024
26 Jun 2024
₹193 – ₹203
73 shares (₹14819)
418cr

Schedule

Issue open date 19 Jun 2024
Issue close date 21 Jun 2024
UPI mandate deadline 21 Jun 2024 (5 PM)
Allotment finalization 24 Jun 2024
Refund initiation 25 Jun 2024
Share credit 25 Jun 2024
Listing date 26 Jun 2024
Mandate end date 06 Jul 2024
Lock-in end date for anchor investors (50%) 24 Jul 2024
Lock-in end date for anchor investors (remaining) 24 Sep 2024

About

DEE Development Engineers’s IPO launches on June 19, 2024, with subscriptions closing on June 21, 2024. Established in 1988, DEE Piping Systems is an engineering company providing specialized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals, and other process industries through engineering, procurement, and manufacturing.

Funds Raised in the IPO Amount
Overall ₹418.01 crores
Fresh Issue ₹325 crores
Offer for sale ₹93.01 crores

With over three and a half decades of manufacturing experience, As part of the specialized process piping solutions, The company also manufactures and supplies piping products such as high-pressure piping systems, piping spools, high-frequency induction pipe bends, Longitudinally Submerged Arc Welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids and accessories including, boiler superheater coils, de-super heaters and other customized manufactured components.

Currently, The company is the largest player in process piping solutions in India, in terms of installed capacity of 70,875 MT for the nine months ended December 31, 2023, with annual capacities of 94,500 MT, 91,500 MT, and 86,500 MT for Fiscal 2023 to 2021 respectively. (Source: D&B Report).


Financial Snapshot

Financial Year Ended March 2021 March 2022 March 2023 December 2023
Total Assets 835.88 845.40 966.26 1,171.01
Revenue 513.03 470.84 614.32 557.86
Profit After Tax 14.21 8.20 12.97 14.34
EPS 2.44 1.53 2.45 2.70

*All figures except EPS are in ₹ Crores

Risk factors

  • Key sectoral headwinds: With over 96% of the revenues coming from these sectors, Any downturn in the oil and gas, power (including nuclear), process industries, and chemical sectors would create an adverse impact on the company’s revenue from operations, cash flows, and financial conditions.
  • Dependence on Top 10 customers: The company derives 67% of its revenues from the top 10 customers and with no long-term contracts with a majority of these customers. If one or more of such customers choose not to source their requirements from the company or choose to terminate the contracts or purchase orders, The company’s business, cash flows, financial condition, and results of operations may be adversely affected.

Note:

  • The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
  • The allotment status will be available by June 25, 2024, on the Registrar’s website and the NSE website.