Mumbai: The IPO of DEE Development Engineers Ltd, a provider of specialised process piping solutions, is seeing strong demand. Today is the final day for bidding, and the issue is already heavily oversubscribed.
IPO Details and Price
DEE Development’s IPO opened for subscription on June 19. The IPO is worth ₹418.01 crore, with a fresh issue of 1.6 crore equity shares totalling ₹325 crore and an offer for sale (OFS) of 46 lakh shares worth ₹93.01 crore.
- Price Band: ₹193 to ₹203 per share
- Lot Size: 73 shares
- IPO Allotment Date: June 24
- Listing Date: June 26
- Stock Exchanges: BSE and NSE
The company plans to use the net proceeds from the issue to fund its working capital needs, repay some of its outstanding debts, and for general corporate purposes. SBI Capital Markets and Equirus Capital Pvt Ltd are the lead managers, and Link Intime India Private Ltd is the registrar.
Subscription Status
As of June 21, the IPO has been subscribed 13.15 times in total:
- Retail Investors: 10.63 times
- Qualified Institutional Buyers (QIB): 0.21 times
- Non-Institutional Investors (NII): 35.83 times
Grey Market Premium (GMP)
The DEE Development shares are trading at a strong premium in the grey market. As of today, the GMP is ₹94 per share. This means the shares are trading ₹94 higher than their IPO price of ₹203 in the grey market. The estimated listing price is around ₹297 per share, indicating a premium of 46.31%.
Expert Review
DEE Development is considered one of the leading players in process piping solutions in India, with a strong focus on automation and operational efficiency. The company’s experience, management team, and financial flexibility are seen as strengths.
Analysts at Reliance Securities suggest subscribing due to DEE Development’s focus on high-margin products, partnerships with global OEMs, and a promising future order flow. They see it as a good investment opportunity.
GEPL Capital points out that the IPO is priced at a P/E of 73X based on annualised FY24 earnings, making it fairly priced compared to peers. They also recommend subscribing, seeing potential growth for DEE Development.
With strong demand and a positive grey market premium, DEE Development’s IPO appears attractive. Both analysts and the market suggest a promising outlook, making it worth considering for investors.
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