IPO Alert: Deepak Builders & Engineers India Limited Filed DRHP with SEBI

On April 15, 2024, Deepak Builders & Engineers India Limited filed DRHP with the market regulator, the Securities and Exchange Board of India (SEBI), to float an Initial Public Offering (IPO). As per DRHP, the IPO is likely to be a combination of both a fresh issue and an offer-for-sale. Under the fresh issue, the company will issue 1,20,00,000 new shares with a face value of ₹10 each. The offer-for-sale component will see the sale of 21,60,000 and 2,40,000 equity shares by promoters Deepak Kumar Singal and Sunita Singal, respectively. Hence, the total offer size for the offer will include 1,44,00,000 shares.

Fedex Securities Private Limited will be the book runner lead manager and Kfin Technologies Limited has been appointed as the Registrar of the issue.

Purpose of the Issue

The company will use the proceeds raised from the fresh issue component for the following:

• Repayment/prepayment, in full or part, of certain borrowings availed by the company.
• Funding of working capital requirements
• General corporate purposes

Deepak Builders & Engineers India Limited will not receive any proceeds from the offer-for-sale. All the funds will be received by selling shareholders.

Business Overview

Incorporated in 2017, Deepak Builders & Engineers India Limited is an integrated engineering and construction company. The company has expertise in the execution and construction of administrative and institutional buildings, hospitals and medical colleges, industrial buildings, historical memorial complexes, stadiums and sports complexes, residential complexes, and various developmental and other construction activities.

The company is currently working on 11 projects, which include 6 EPC projects and 5 item-rate /percentage rate contracts. As of February 29, 2024, the company’s order book stood at ₹12,115.68 million, out of which projects awarded by Northern Railways contributed 52.51%, industrial building projects awarded by IOCL contributed 30.32%, and hospital and medical projects awarded by government-controlled entities collectively contributed 11.61%.

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.