Deepak Builders & Engineers IPO Surges on Day 2: GMP at ₹61, Subscription Status Revealed – Should You Invest Now?
The IPO of Deepak Builders & Engineers, worth ₹260.04 crore, is seeing strong interest from both retail investors and non-institutional investors (NIIs). The issue, which opened on October 21 and closes on October 23, offers shares priced between ₹192 and ₹203 each.
The IPO consists of two parts: a fresh issue of 1.07 crore shares (raising ₹217.21 crore) and an offer for sale (OFS) of 21 lakh shares (raising ₹42.83 crore). The funds will be used to repay debt, finance working capital, and for general corporate purposes.
Grey Market Premium (GMP)
The latest GMP for Deepak Builders & Engineers is ₹61. Based on the upper price band of ₹203, this suggests a potential listing price of ₹264, reflecting a 30% premium.
Subscription Status
By the second day of the IPO (October 22), the issue had been subscribed 7.46 times. Retail investors showed the most interest, subscribing to the retail portion 10.80 times. NIIs booked 8.93 times their allotment, while Qualified Institutional Buyers (QIBs) subscribed to 0.52 times.
Key Dates and Details
The IPO remains open until Wednesday, October 23. Allotments will be finalised on October 24, with shares likely credited to demat accounts by October 25. The stock is expected to list on both the NSE and BSE on October 28.
Company Overview
Deepak Builders & Engineers specialises in constructing buildings, hospitals, and industrial projects. Its strong order book of ₹13,803.9 million and major government contracts highlight its solid standing in the sector.
Should You Invest?
Experts believe the company is well-positioned for growth due to urbanisation and infrastructure expansion in India. Government schemes like the Gati Shakti Plan and the Bharatmala Pariyojana will boost the construction sector, with demand expected to reach $1.4 trillion by 2025. Analyst Akriti Mehrotra from StoxBox recommends subscribing to the IPO for medium to long-term investors, citing the company’s strong order book, proven track record, and financial growth.
The IPO’s pricing, with a P/E ratio of 12.1 times based on FY24 earnings, makes it attractively valued compared to competitors. With strong financials and a solid track record, Deepak Builders & Engineers is set for expansion in the coming years.
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