DEE Vikas IPO: The initial public offering (IPO) of piping solutions provider DEE Development Engineers was oversubscribed 8.99 times on the second day of the offer on Thursday. Rs. 418 crore initial share sale saw bids for 13,42,84,887 shares against an offer of 1,49,44,944 shares, according to NSE data. Non-institutional investors’ share received 21.71 times subscription while retail individual investors’ category received 8.41 times subscription. The Qualified Institutional Buyers (QIB) segment received 16 percent subscription. In IPO Rs. New shares up to 325 crores have been issued. This also includes an offer for sale (OFS) of 45,82,000 equity shares.
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Strong response in gray market
The price band for DEE Development Engineers IPO has been fixed at Rs 193-203 per share. While the gray market premium is Rs. is 98. Thus, the share Rs. 301 is expected to be listed. This represents a premium of 48.28% over the IPO. Let us tell you that DEE Development Engineers Limited raised a little over Rs 125 crore from anchor investors on Tuesday. Anchor investors include HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, LIC Mutual Fund, Pinebridge Global Funds, Tru Capital, Citigroup, Morgan Stanley and Societe Generale.
What will happen to the money?
The company will meet its working capital requirements with the proceeds of DEE Development Engineers IPO. The company will spend Rs 75 crore from this earnings. To repay the company loan Rs. 175 crore and the remaining amount is going to be spent for general corporate purposes.
About the company
Established in 1988, DEE Development Engineers is an engineering company. It provides specialized process piping solutions for oil and gas, nuclear, chemical, power and other industries through engineering, procurement and manufacturing. In the nine months ended December 31, 2023, the company posted Rs. 380.23 crore on revenue of Rs. 14.34 crore profit was recorded. The company’s net profit for FY23 was Rs. 614.32 crore with revenue of Rs. 12.97 crores.