DEE Piping Systems IPO: Top 10 Must-Know Details as ₹418 Crore Offer Launches 19th June

DEE Development Engineers Ltd, a piping solutions company, is set to launch its initial public offering (IPO) worth over ₹418 crore this week. The IPO opens on 19th June 2024.

10 Key Details of the DEE Piping Systems IPO:

1. IPO Dates:
   • The IPO opens on Wednesday, 19th June, and closes on Friday, 21st June.
2. Price Band:
   • The IPO price band is set between ₹193 and ₹203 per share.
   • Employees receive a discount of ₹19 per share.
3. Lot Size:
   • Each lot contains 73 shares.
   • The minimum investment for retail investors is ₹14,819.
4. IPO Size:
   • At the highest price of ₹203 per share, the total IPO size is ₹418.01 crore.
   • It includes a fresh issue of 1.6 crore shares worth ₹325 crore and an offer for sale (OFS) of 46 lakh shares worth ₹93.01 crore.
5. Reservation:
   • 50% of the shares are reserved for Qualified Institutional Buyers (QIBs).
   • 35% are for Retail Investors.
   • 15% are for Non-Institutional Investors (NIIs).
6. Allotment:
   • The allotment of shares is expected to be finalised on 24th June.
7. Listing:
   • DEE Piping Systems shares will be listed on the BSE and NSE on 26th June.
8. Use of Funds:
   • The funds will be used to support working capital needs, repay some existing loans, and for general corporate purposes.
9. Management:
   • SBI Capital Markets and Equirus Capital are managing the IPO.
   • Link Intime India Private Ltd is the registrar.
10. GMP (Grey Market Premium):
    • The current grey market premium for the IPO is ₹50 per share.
    • This indicates the shares might list at ₹253 each in the grey market, a 24.63% premium over the highest IPO price of ₹203.

About DEE Development Engineers:

DEE Development Engineers manufactures and supplies piping products for industries like oil and gas, power, and chemicals. They have seven factories in Haryana, Gujarat, Rajasthan, Assam, and Thailand. Key promoters include Krishan Bansal, Ashima Bansal, and DDE Piping Components Private Limited.

Financial Highlights:

• FY23: Net profit of ₹12.97 crore, revenue of ₹614.32 crore.
• FY22: Net profit of ₹8.20 crore, revenue of ₹470.84 crore.
• 9 months ending Dec 2023: Net profit of ₹14.34 crore, revenue of ₹557.86 crore.