DEE Development Engineers Limited is coming up with an IPO worth INR 418.01 crores, consisting of a fresh issue of shares worth INR 325 crores and an offer to sell 93.01 crore shares. The company aims to fund working capital, repay borrowings, and address general corporate needs.
Dee Piping Systems IPO – Important Dates
| DEE Development Engineers Limited IPO Date | June 19, 2024 to June 21, 2024 |
| DEE Development Engineers Limited IPO Listing Date | June 26, 2024 |
| DEE Development Engineers Limited IPO Price | INR 193-203 per share |
| DEE Development Engineers Limited IPO Lot Size | 73 Shares |
| DEE Development Engineers Limited IPO Total Issue Size | INR 418.01 crore |
| DEE Development Engineers Limited IPO Basis of Allotment | June 24, 2024 |
| DEE Development Engineers Limited IPO Initiation of Refunds | June 25, 2024 |
| DEE Development Engineers Limited IPO Credit of Shares to Demat | June 25, 2024 |
| DEE Development Engineers Limited IPO Issue Type | Book Built Issue IPO |
| DEE Development Engineers Limited IPO Listing At | BSE, NSE |
DEE Development Engineers Ltd IPO – Company Profile
DEE Development Engineers is a leading global engineering company specializing in process piping solutions for industries like oil, gas, power, and chemicals. With over three decades of manufacturing expertise, they’re India’s largest process piping solutions provider, renowned for technical excellence.
They offer comprehensive process piping solutions, including pre-bid and detailed engineering, pre-fabrication services, cutting-edge welding techniques, post-weld treatments, and expertise in handling diverse materials. Their services encompass a wide range of processes for seamless project execution.
They have six manufacturing facilities in Haryana, Gujarat, Rajasthan, and Thailand, totaling 426,064.52 sqm. The current cumulative capacity is 94,500 MT p.a., with ongoing expansions in Assam and Gujarat for increased capacity. Focused on automation, their facilities feature robotic welding, shot blasting, GMAW welding, and high-frequency induction bending.
DEE Development Engineers Ltd IPO – Fundamental Analysis
DEE Development Engineers Limited’s financial analysis reveals a mixed performance. Revenue has steadily increased but fell short in December 2023. Profitability and EPS improved, while RoNW declined despite growing equity and liabilities.
- Revenue Trend: The revenue increased from ₹4,609.16 million in March 2022 to ₹5,954.95 million in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 5,455.54 million, falling short of the previous year’s annual benchmark.
- Equity and Liabilities: Both equity and total liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has increased from ₹81.97 million in March 2022 to ₹143.37 million by December 2023. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹1.53 in March 2022 to ₹2.69 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has declined from 2.04% to 3.35%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth.
DEE Development Engineers IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in Million) | 4,609.16 | 5,954.95 | 5,455.54 |
| Equity (₹ in Million) | 4119.82 | 4236.44 | 4,380.45 |
| Expenses (₹ in Million) | 4,575.45 | 5,939.48 | 5,388.32 |
| Profit and Loss After Tax (₹ in Million) | 81.97 | 129.72 | 143.37 |
| RoNW (%) | 2.04 | 3.14 | 3.35 |
| NAV per Equity Share (₹) | 76.75 | 79.87 | 82.59 |
| Diluted EPS only (₹) | 1.53 | 2.45 | 2.69 |
| Total Assets (in million) | 8,453.97 | 9,662.59 | 11,710.10 |
| Total Liabilities (in million) | 4,334.15 | 5,426.15 | 7,329.65 |
DEE Development Engineers Limited IPO Peer Comparison
DEE Development Engineers Limited, with revenues of ₹6,143.20 million, has a lower RoNW (3.14%) and EPS (₹2.45) compared to ISGEC Heavy Engineering Limited Is significantly higher revenue (₹64,117.13 million), RoNW (8.96%), and EPS (₹26.72).
| Company | Total Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| DEE Development Engineers Limited | 6,143.20 | 10 | NA | 2.45 | 2.45 | 3.14 | 79.87 |
| SGEC Heavy Engineering Limited | 64,117.13 | 1 | 30.11 | 26.72 | 26.72 | 8.96 | 313.39 |
Dee Development IPO Objective
The main objective of DEE Development Limited is to fund working capital requirements and repay borrowings.
- Funding the working capital requirements of the company: The company intends to utilize INR 75 crores from the Net Proceeds to fund working capital needs, aiming to enhance profitability and meet business targets outlined in its plan for Fiscal 2025.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company: The company plans to utilize INR 175 crores from the Net Proceeds to prepay or repay various outstanding borrowings, aiming to reduce debt, maintain a favorable debt-equity ratio and facilitate business growth.
- General Corporate Purposes: The company plans to deploy the balance funds towards the general corporate goals, including strategically allocating funds for growth, acquisitions, brand building, expenses, and strengthening manufacturing and research capabilities.
Dee Development Engineers IPO Risks And Challenges
DEE Development Engineer Limited faces challenges in meeting high-quality standards, and its reliance on critical industries poses risks like supply disruptions and machinery issues. Industry fluctuations and regulatory challenges may impact demand and operations.
- The company, specializing in process piping solutions for critical industries, needs help meeting high-quality standards and customer specifications. Compliance issues may disrupt supply, impact customer retention, and lead to liquidated damages for delays in delivery or documentation.
- The company operates six strategically located manufacturing facilities, including specialized facilities for heavy fabrication. Operating risks include machinery malfunctions, accidents, and the need for timely maintenance. Any disruption, accidents, or resource shortages may adversely affect business, financial condition, and prospects.
- The company’s reliance on oil, gas, power, and chemical sectors exposes it to industry fluctuations, including oil price changes, sectoral seasonality, and regulatory challenges, potentially impacting demand and operations.
DEE Piping Systems IPO – Industry & Market Potential
The global energy landscape is shifting towards sustainability, exploring alternative fuels like ammonia and hydrogen. Ammonia, composed of hydrogen and nitrogen, shows promise, and hydrogen, with its high energy content and emissions-free combustion, is gaining attention as a versatile and sustainable energy option.
India’s manufacturing sector has experienced substantial growth in the past decades, attributed to supportive policies, market-friendly reforms, and global economic changes. This led to a surge in manufacturing output, with Gross Value Added rising from INR 1,502 thousand crores in FY 2012 to nearly INR 2,617 thousand crores in FY 2023.
The demand for process piping solutions is intricately linked to industrial capital expenditure. Construction or expansion of industrial facilities consistently generates demand for process piping hardware and services, making capital expenditure a reliable indicator of this demand.
DEE Development Engineers Limited IPO – Type of Offer
DEE Development Engineers Limited includes a fresh issue worth INR 325 crores and an offer to sell 93.01 crore shares by the existing shareholders.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 325 crores. The company plans to utilize it to fund working capital requirements, repay borrowings, and address general corporate needs.
- Offer for sale: DEE Development is offering to sell 93.01 lakh existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Krishan Lalit Bansal | 7,900,000 |
DEE Development Engineers Limited IPO Offer Size
The offer size of DEE Development is INR 418.01 crores, consisting of a fresh issue worth INR 325 crores and an offer to sell 93.01 crore shares. The company seeks funds to meet working capital requirements, repay borrowings, and address general corporate needs.
DEE Development Engineers Limited IPO Allotment Structure
DEE Development Engineers Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 342,400 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a DEE Development Engineers IPO?
To apply for the DEE Development Engineers Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the DEE Development Engineers Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the DEE Development Engineers Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check DEE Development Engineers IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the DEE Development Engineers Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the DEE Development Engineers Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the DEE Development Engineers Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the DEE Development Engineers Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE and NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
DEE Development Engineers IPO Offer Registrar
The registrar for the DEE Development Engineers Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C 101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Maharashtra, India 400083
Tel: +91-8108114949
E-mail: [email protected]
Website: www.linkintime.co.in
DEE Development IPO – FAQs
The allotment date of the DEE Development Engineers Limited IPO is June 24, 2024.
The price band of the issue is INR 71-75 per share.
The offer size of DEE Development is INR 418.01 crores, consisting of a fresh issue worth INR 325 crores and an offer to sell 93.01 crore shares. The company seeks funds to meet working capital requirements, repay borrowings, and address general corporate needs.
The listing date of DEE Development Engineers Limited’s IPO is June 26, 2024.
