Stellar Listing: DEE Development Engineers India Lists at 67% Premium at Rs 339 per share on NSE!

DEE Development Engineers Limited is an engineering firm specializing in customized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals, and other process sectors, debuted on the Indian stock market today.

The stock of DEE Development Engineers India settled at Rs 325 per share on the BSE, representing an impressive 60% premium over the final issue price of Rs 203 per share. Additionally, on the NSE, the company’s shares opened at Rs 339 per share, indicating a gain of 67%. The market capitalization on the BSE stands at around Rs 2350.26 crore.

IPO Proceeds 

The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:

• Funding working capital requirements of the Company
• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company; and
• General corporate purposes

Business Overview

Established in 1988, DEE Development Engineers Limited is an engineering firm specializing in customized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals, and other process sectors. Their services span engineering, procurement, and manufacturing.

DEE Development Engineers Limited also manufactures and supplies a wide range of piping products, including high-pressure piping systems, piping spools, high frequency induction pipe bends, longitudinally submerged arc welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids, and various accessories. These accessories encompass boiler superheater coils, de-superheaters, and other tailored components.

The company operates from seven manufacturing facilities situated in Palwal, Haryana; Anjar, Gujarat; Barmer, Rajasthan; Numaligarh, Assam; and Bangkok, Thailand, with three of these facilities located specifically in Palwal, Haryana.

Subscription details 

As of June 21, 2024, the IPO was subscribed 103.03 times. The public issue saw a subscription rate of 23.66 times in the retail category, 206.54 times in the QIB category, and 149.38 times in the NII category.

The IPO price band was Rs 193 and Rs 203, with a face value of Rs 10 per share and a lot size of 73 shares. The total size of the company’s IPO was Rs 418 crore, and the final share issue price was fixed at Rs 203 each.

Conclusion 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 67% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.