DEE Development Engineers Limited’s IPO consists of a fresh issue of shares worth INR 325 crores and an offer to sell 79 lakhs of existing equity shares. The company will use the funds raised to fund working capital, repay loans, support subsidiaries, and address general corporate needs for efficient financial management.
Dee Development Engineers Limited IPO – Important Details
| DEE Development Engineers Limited IPO Date | NA |
| DEE Development Engineers Limited IPO Listing Date | NA |
| DEE Development Engineers Limited IPO Price | NA |
| DEE Development Engineers Limited IPO Lot Size | NA |
| DEE Development Engineers Limited IPO Total Issue Size | NA |
| DEE Development Engineers Limited IPO Basis of Allotment | NA |
| DEE Development Engineers Limited IPO Initiation of Refunds | NA |
| DEE Development Engineers Limited IPO Credit of Shares to Demat | NA |
| 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 from 2021 to 2023 reveals fluctuating revenue and profits, modest RoNW, and increasing liabilities, indicating a recovering but variable performance, vital for investors considering the upcoming IPO.
Revenue Trend:
Revenue fluctuated, decreasing from ₹4,952.17 million in 2021 to ₹4,609.16 million in 2022, but rebounded to ₹5,954.95 million in 2023. This suggests a recovery in sales.
Equity:
Equity slightly decreased from ₹4,543.18 million in 2021 to ₹4,119.82 million in 2022, then marginally increased to ₹4,236.44 million in 2023, indicating some volatility in shareholder equity.
Expenses:
Expenses closely tracked revenue, suggesting a tight control on costs. The increase in 2023 coincides with the rise in revenue.
Profit After Tax:
Profit after tax shows variability, decreasing in 2022 but increasing again in 2023 to ₹129.72 million, indicating a recovering profitability.
Return on Net Worth (RoNW):
The RoNW has been low and somewhat inconsistent, dropping from 3.17% in 2021 to 2.04% in 2022, and slightly increasing to 3.14% in 2023. This indicates a modest return on equity.
Earnings Per Share (EPS):
The EPS decreased from ₹2.44 in 2021 to ₹1.53 in 2022 but recovered to ₹2.45 in 2023, aligning with the profit trends.
Net Asset Value (NAV) per Equity Share:
NAV per share has been relatively stable, showing a slight increase over the years.
Total Assets and Liabilities:
Total assets have grown consistently, but so have total liabilities. The increasing liabilities need to be considered in the context of the company’s growth strategy.
DEE Development Engineers Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 4,952.17 | 4,609.16 | 5,954.95 |
| Equity (₹ in Million) | 4543.18 | 4119.82 | 4236.44 |
| Expenses (₹ in Million) | 5,041.98 | 4,575.45 | 5,939.48 |
| Profit and Loss After Tax (₹ in Million) | 142.05 | 81.97 | 129.72 |
| RoNW (%) | 3.17 | 2.04 | 3.14 |
| NAV per Equity Share (₹) | 78.16 | 76.75 | 79.87 |
| Diluted EPS only (₹) | 2.44 | 1.53 | 2.45 |
| Total Assets (in million) | 8,358.76 | 8,453.97 | 9,662.59 |
| Total Liabilities (in million) | 3,815.58 | 4,334.15 | 5,426.15 |
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 SGEC Heavy Engineering Limited’s 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 Engineers Limited IPO Objective
The main objective of DEE Development Limited is to allocate funds for working capital, anticipating increased profitability. An additional INR 175 crores will prepay outstanding borrowings, with the balance directed to general corporate purposes, focusing on growth, acquisitions, brand building, expenses, and strengthening manufacturing and research capabilities.
1. Funding the working capital requirements of the company: DEE Development plans to utilize INR 75 crores from the Net Proceeds to support the working capital for meeting the business requirements of their company in Fiscal 2024. The funding of their company’s incremental working capital requirements will help lead to a consequent increase in their profitability and in achieving the proposed targets per their business plan.
2. Repayment of all or a portion of certain outstanding borrowings availed by their Company and their Subsidiaries, DEE Piping Systems (Thailand) Co. Limited and DEE Fabricom India Private Limited: The company proposes to utilize an estimated amount of up to INR 175 crores from the Net Proceeds towards prepaying term loans, working capital, and facilities for DEE subsidiaries. They aim to reduce borrowings, maintain a favorable ratio, and utilize internal accruals for expansion.
3. 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 Limited 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 Development Engineers Ltd 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’s plans to issue fresh shares, seeking INR 325 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 79 lakhs existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 325 crores. The company intends to utilize the proceeds from the fresh issue to fund working capital, repay loans, support subsidiaries, and address general corporate needs for efficient financial management.
2. Offer for sale: DEE Development is offering to sell 79 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 million) |
| Krishan Lalit Bansal | 7,900,000 |
DEE Development Engineers Limited IPO Offer Size
The offer size of DEE Development is INR xxx crores. This comprises a new issuance of shares totaling INR 325 crores and the sale of 79 lakhs of existing equity shares. The funds generated will fund working capital, repay loans, support subsidiaries, and address general corporate needs.
DEE Development Engineers Limited IPO Allotment Structure
DEE Development Engineers Limited’s IPO allocation designates 50% to Qualified Institutional Buyers (banks, mutual funds, insurance), 15% to Non-Institutional Investors (corporates, high-value individuals), and 35% to Retail Individual Investors (individuals with smaller investments), which complies with SEBI regulations.
- 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): 15% 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 35% 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 Limited IPO?
To apply for the DEE Development Engineers Limited IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. 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.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the DEE Development Engineers Limited’s IPO at Alice Blue[M1] in just a few clicks!
Check Allotment Status: Post 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 to Check DEE Development Engineers Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. 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.
3. 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.
4. Select the DEE Development Engineers Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the DEE Development Engineers Limited IPO.
5. 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 to 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 In time 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 and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
DEE Development Engineers Limited IPO Offer Registrar
The registrar for the DEE Development Engineers Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C-101, 1stFloor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Maharashtra, India
Tel: +91 810 811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
DEE developer Engineers Limited IPO FAQs
What is the allotment date of the DEE Developer Engineers Limited IPO?
The allotment date of the DEE Developer Engineers Limited IPO has not yet been announced.
What is the price band of the DEE Developer Engineers Limited IPO?
The price band of the DEE developer Engineers Limited IPO has not yet been announced.
What is the size of the DEE Developer Engineers Limited IPO?
DEE Developer Engineers Limited plans to launch an Initial Public Offering (IPO). This comprises a new share issuance of INR 325 crores and the sale of 79 lakhs of existing equity shares. The funds generated will fund working capital, repay loans, support subsidiaries, and address general corporate needs.
What is the listing date of the DEE Developer Engineers Limited IPO?
The listing date of the DEE Developer Engineers Limited IPO has not yet been announced.
