DEE Development Engineers Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹203
Per ShareLot Size
73 Shares
Minimum Investment
₹14,819
Issue Size
₹418.01 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
DEE Development Engineers Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
97.24%
Issue Type
Book Building
ISIN
INE841L01016
About the Company
Dee Development Engineers Limited is an engineering company providing specialized process piping solutions for industries such as oil and gas, power, chemicals and other process industries through engineering, procurement and manufacturing. The Company has manufacturing experience of over three and a half decades and has been able to leverage its brand, strategically located manufacturing facilities and engineering capabilities to successfully expand its business. The Company also manufactures and supplies piping products such as 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 accessories including, boiler superheater coils, de-super heaters and other customized manufactured components.
Industry Overview
The global market for process piping solutions is expected to reach USD 54.5 billion by the end of this decade, growing by a CAGR of 4.8% during 2023-30 period. The process piping solutions market in India managed to generate an annual turnover of approximately INR 25.4 thousand crores in FY 2023. By FY 2030, the annual turnover in Indian process piping solution market is expected to reach INR 38.4 thousand crores, increasing by a CAGR of nearly 6.1% between FY 2023 and FY 2030. The demand for process piping solution is directly tied to the capital expenditure pattern in industrial segment.
Company History
DEE Development Engineers Limited was originally incorporated as DEE Development Engineers Private Limited" a private limited company under the Companies Act, 1956 through a certificate of incorporation dated March 21, 1988, issued by the RoC. Thereafter, the name of the Company was changed to "DEE Development Engineers Private Limited" pursuant to a Board resolution dated September 28, 1997 and a special resolution passed in the general meeting of the Shareholders held on October 22, 1997 and consequently a fresh certificate of incorporation dated January 8, 1998 was issued by the RoC to reflect the change in name. Pursuant to an amendment to the Companies Act, 1956, the Company was deemed public under Section 43A (1A) of the Companies Act, 1956 with effect from July 1, 1998. Consequently, the word "Private" was deleted from the name of the Company and the name was changed to "DEE Development Engineers Limited" pursuant to a Board resolution dated June 1, 1998. Thereafter, the Company was converted into a private limited company pursuant to an amendment to Section 43A (1A) in Companies Act, 1956 by Section 43A (2A) of the Companies Amendment Act, 2000 with effect from July 16, 2004 and the name was changed to "DEE Development Engineers Private Limited" pursuant to a Board resolution dated July 16, 2004. The name of the Company was changed to "DEE Development Engineers Limited" upon conversion to a public limited company pursuant to a Board resolution dated December 29, 2009 and a resolution passed in the extra-ordinary general meeting of the Shareholders held on January 18, 2010 and consequently a fresh certificate of incorporation dated March 11, 2010, was issued by the RoC.
Products & Services
- DEE Development Engineers Limited is an engineering company providing specialized process piping solutions for industries such as oil and gas, power chemicals and other process industries through engineering, procurement and manufacturing.
Growth Strategy
- Leverage its market leading position in the industry to capitalize on the revival of capital expenditure cycle in the sectors which the company services which will drive the next phase of its growth.
- Drive automation across its facilities and processes to bring in operational efficiencies.
- Forging technology tie-ups with select global OEMs to derive consistent order flow and making it a preferred partner.
- Increasing its focus on high margin products with additional contributions from modular skids and usage of high-grade materials which offers a better margin contribution to profitability.
- Launch its pilot plant offerings in the near-future.
- Focus on deleveraging and maintaining financial flexibility.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 20,596,938*# equity shares of face value of Rs. 10 each ("Equity Shares") of Dee Development Engineers Limited ("The Company" or the "Issuer") for cash at a price of Rs. 203.00 per equity share ("Offer Price") aggregating to Rs. 418.01# crores (the "Offer"). The offer comprises of a fresh issue of 16,014,938*# equity shares by the company aggregating upto Rs. 325.00# crores (the "Fresh Issue") and an offer for sale of 45,82,000*# equity shares (the "Offered Shares") by Krishan Lalit Bansal ("Selling Shareholder") aggregating to Rs. 93.01# crores (the "Offer for Sale"). The offer shall constitute 29.83#% of the post-offer paid-up equity share capital of the company. This offer included a reservation of 54,347# equity shares (constituting 0.08%# of the post offer paid up equity share capital of the company) aggregating to Rs. 1.00# crores for subscription by eligible employees (as defined herein) ("Employee Reservation Portion"). The employee reservation portion did not exceed 5%# of the post-offer paid-up equity share capital. The offer less the employee reservation portion is referred to as the "Net Offer". The company, in consultation with the book running lead managers, offered a discount of Rs. 19.00 per equity share to eligible employees bidding in the employee reservation portion ("Employee Discount"). The offer and the net offer constitutes 29.83%# and 29.75%#, respectively, of the post-offer paid-up equity share capital of the company. The face value of the equity shares is Rs. 10 each and the offer price is 20.30 times the face value of the equity shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Leading player in an industry with significant barriers to entry.
- Largest player in process piping solutions in India, in terms of installed capacity, providing specialized process piping solutions with strategically located state-of-the-art Manufacturing Facilities.
- Long standing customer relationships with a strong order book.
- Wide range of specialized product offerings and services making it a comprehensive solution provider for its diversified customers spread across geographies and sectors.
- Strong focus on automation and process excellence with an experienced engineering team to drive operational efficiencies.
- The company is measured against high quality standards and stringent performance requirements by its customers. Any failure by it to comply with these standards or performance requirements may lead to the cancellation of existing and future orders, recalls, liquidated damages, invocation of performance bank guarantees or warranty and indemnity or liability claims, which could adversely affect its reputation, business, results from operations, financial conditions and cash flows.
- Its business is dependent and will continue to depend on the company manufacturing facilities, and the company is subject to certain risks in its manufacturing process due to the usage of heavy machinery in its manufacturing operations. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees could interfere with our operations, and could have an adverse effect on its business, cash flows, financial condition and results of operations.
- Majority of the Net Proceeds will be utilized for the repayment or prepayment of indebtedness availed of by the Company.
- Any downturn in the oil and gas, power (including nuclear), process industries, chemical sectors would create an adverse impact on its revenue from operations, cash flows and financial conditions.
- The company derives a significant part of its revenue from some customers, and the company does not have long term contracts with a majority of these customers. If one or more of such customers choose not to source their requirements from it or to terminate its contracts or purchase orders, the company's business, cash flows, financial condition and results of operations may be adversely affected.