Deepak Builders & Engineers IPO Set to List on Monday: Here’s What Today’s Grey Market Premium Reveals
The shares of Deepak Builders & Engineers are set to debut on the Indian stock exchanges on Monday, October 28, after the company’s recent IPO. As the listing date approaches, investors are focusing on potential listing gains, which can be estimated by looking at the grey market premium (GMP).
Currently, the company’s shares have a healthy GMP of ₹50, according to market sources. Based on the upper price band of ₹203 for the IPO and the current GMP, the estimated listing price for Deepak Builders & Engineers stands at ₹253 per share, representing a 25% gain over the IPO price. The grey market premium reflects how much investors are willing to pay above the issue price.
The IPO, valued at ₹260 crore, was open for subscription from October 21 to October 23, 2024, with a price range of ₹192 to ₹203 per share. The shares will list on both the BSE and NSE.
The IPO included a fresh issue of 1.07 crore shares, raising ₹217.21 crore, and an offer for sale of 0.21 crore shares worth ₹42.83 crore. The IPO saw strong investor interest, with an overall subscription rate of 41.54 times. Non-institutional investors’ portion was subscribed 82 times, retail investors’ portion 39.79 times, and qualified institutional buyers’ portion 13.91 times.
The company plans to use the funds from the fresh issue to repay or prepay some borrowings, meet working capital needs, and cover general corporate purposes.
About Deepak Builders & Engineers
Deepak Builders & Engineers is an integrated engineering and construction company that specializes in projects such as government buildings, hospitals, industrial structures, sports complexes, and residential projects. Currently, the company has eleven ongoing projects, including six EPC (Engineering, Procurement, and Construction) projects and five item rate contracts.
The company is a Class I (Super) Contractor with the Central Public Works Department, allowing it to independently bid on large government projects. As of February 2024, the company’s order book stood at ₹12,115.68 million, with projects from Northern Railways making up 52.51%, an industrial building project from IOCL contributing 30.32%, and hospital and medical projects accounting for 11.61%.
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