Deepak Builders and Engineers IPO Opens on October 21: Price Band Set at ₹192-203 – Key Details Inside!

Deepak Builders and Engineers, an engineering and construction company, is set to launch its initial public offering (IPO) on October 21. The IPO will be open for subscription until October 23, with a price range set between ₹192 and ₹203 per share.

The IPO includes a fresh equity sale of ₹217 crore and an offer for sale (OFS) of 21 lakh shares. Of the total offer, 50% is reserved for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors (NIIs). Investors can bid for 73 shares per lot and in multiples of that.

The funds raised will be used for several purposes: ₹95 crore will go towards the company’s working capital needs, ₹30 crore will be used to repay debt, and the rest will be used for general corporate expenses.

Deepak Builders and Engineers is a company that specialises in the construction of various projects such as administrative and institutional buildings, hospitals, industrial buildings, historical memorials, stadiums, and residential complexes. The company also works on infrastructure projects like flyovers, railway bridges, and the development of railway stations.

They handle projects on a full turnkey basis, which includes architectural, structural, and civil works, as well as HVAC and MEP services. The company’s revenue comes from three main areas: EPC projects, item-rate projects, and the sale of leftover construction materials. EPC projects make up around 45% of their revenue, while item-rate projects contribute 30%, and 25% comes from selling products.

In the financial year FY24, the company’s revenue reached ₹511 crore, an increase from ₹433 crore in FY23. Their net profit more than doubled to ₹60.4 crore.

Fedex Securities is the lead manager for this IPO.