Deepak Builders & Engineers India Limited IPO Opens Today: Here’s Everything You Need to Know

The upcoming IPO of Deepak Builders & Engineers India Limited has caught the attention of investors, especially those interested in India’s booming infrastructure and construction sector. HDFC Sky is making every IPO process seamless with the One-Click IPO feature, allowing investors to participate using their existing UPI accounts, making the IPO more accessible and hassle-free for all.

7 Factors to Consider Before Investing in the Deepak Builders & Engineers IPO:

1.?Growth in Construction Industry

Deepak Builders & Engineers operates in a booming construction and infrastructure sector, making it well-positioned to capitalize on increased urbanization and government-backed infrastructure projects in India.

2. Established Market Presence

With notable projects completed in Punjab, Haryana, Rajasthan, and Uttarakhand, the company has built a strong reputation and market presence.

3. Diverse Project Portfolio

The company handles turnkey projects across architectural, structural, civil, and other construction activities, reducing its reliance on any single segment.

4.?Strong Anchor Investment

The IPO has attracted anchor investors, raising ?78.01 crores, which is a positive indicator of institutional confidence in the company’s future prospects.

5.?Prominent Promoters

The promoters, Deepak Kumar Singal and Sunita Singal, hold 100% pre-issue shares, showing deep involvement and long-term commitment to the company's growth.

6. Substantial Issue Size

With a total issue size of ?260.04 crore, including a fresh issue and offer for sale, it provides enough liquidity for new investors without heavy dilution for existing shareholders.

7.?Focus on Public Health & Environment

Projects like hospitals, gas pipelines, and firefighting systems demonstrate the company’s commitment to critical public health infrastructure, which has growing demand post-pandemic.

About Deepak Builders & Engineers

Incorporated in September 2017, Deepak Builders & Engineers India Limited is a diversified construction company engaged in the development of infrastructure, residential, and commercial projects. Their expertise covers a broad range of services, including civil engineering, MEP systems, IT infrastructure, and environmental projects. The company has completed key projects across four states in India and two Union Territories, specializing in administrative buildings, hospitals, residential complexes, and more. Deepak Builders & Engineers has successfully grown in the infrastructure sector, contributing to various critical projects that shape the landscape of India.

Key Details of the IPO

• IPO Date: October 21, 2024 – October 23, 2024
• Price Band: ?192 to ?203 per share
• Lot Size: 73 shares
• Total Issue Size: 12,810,000 shares aggregating to ?260.04 crore
• Fresh Issue: 10,700,000 shares aggregating to ?217.21 crore
• Offer for Sale: 2,110,000 shares aggregating to ?42.83 crore

Financials of Deepak Builders & Engineers

• Assets: ?6,41.1 crore
• Revenue: ?106.34 crore
• Profit After Tax: ?14.21 crore
• Net Worth: ?155.81 crore

Objectives of the IPO

The primary objective of the Deepak Builders & Engineers IPO is to raise capital through the fresh issue, which will be used for the following:

1. Repayment/prepayment, in full or part, of certain borrowings availed by the company;
2. Funding of working capital requirements of the company and
3. General corporate purposes

Conclusion

Deepak Builders & Engineers IPO offers an exciting opportunity for investors to be part of India’s growing infrastructure sector. With a well-established project portfolio and a promising future, the company is poised to benefit from both public and private sector investments in construction and related fields. By simplifying the process through HDFC Sky’s One-Click IPO feature, investors can effortlessly invest in this promising venture, using just their UPI account.