Deepak Builders & Engineers IPO

Deepak Builders & Engineers IPO: Fresh issue of 1.07Cr shares for ₹217.21Cr, OFS of 21.10L shares for ₹42.83Cr. Funds for debt repayment, working capital & corporate purposes.

Important Details

Open Date : October 21, 2024 Close Date : October 23, 2024 Allotment Date: October 24, 2024 Listing Date: October 28, 2024

Important Details

IPO Price: INR 192- 203 per share Lot Size: 73 Shares Total Issue Size: INR 260.04 crores

Fundamental Analysis

Deepak Builders IPO shows mixed performance: 1. Revenue up 18.9% to ₹6,034.27 million in FY2024. 2. PAT surged 325% to ₹604.10 million. 3. RONW increased to 52.39%. 4. Debt-equity ratio improved to 0.91. 5. Strong asset growth and cost control enhance financial stability.

Peer Comparison

1. Deepak Builders: RoNW 52.39%, EPS ₹16.84, NAV ₹39.37. 2. Competitors (IRCON, Ahluwalia, PSP, ITD Cementation) have lower RoNW but higher NAVs. 3. Reflects differing profitability and asset values.

Objective

Deepak Builders IPO Objective: 1. Allocate INR 30 crores for loan repayment. 2. Allocate INR 111.96 crores for working capital needs. 3. Remaining funds for general corporate purposes, including operational expenses, project development, and expansion.

Risks And Challenges

Deepak Builders IPO Risks: 1. Revenue relies on government projects, vulnerable to policy changes. 2. Risk of project delays or cancellations. 3. Negative cash flows threaten performance and profitability.