DEE Development Engineers Ltd’s (DEE) initial public offering (IPO) continued to evoke positive response from bidders, with the overall issue subscribed over five times as of noon Thursday, the second day of bidding. 

The IPO, priced ₹193-203, closes on Friday. The issue was fully subscribed on the first day of bidding. 

The DEE IPO size stood at ₹413-418 crore and the implied market cap or valuation is ₹1,349-1,402 crore. As per BSE, the overall IPO, as of 12 noon, was subscribed 5.34 times. 

So far the portion for high networth individuals and non-institutional investors is subscribed 11.57 times, employee portion 11.85 times, and retail portion 5.64 times. 

DEE said in its Red Herring Prospectus (RHP) that it has, over decades of operations, developed strong relationships with customers, including global companies such as JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, and John Cockerill SA, and Indian companies such as Reliance Industries Limited, Thermax Babcock & Wilcox Energy Solutions Limited India, HPCL–Mittal Energy Limited, Toshiba JSW Power Systems Private Limited, UOP India Private Limited, Doosan Power Systems India Private Limited, and Andritz Technologies Private Limited. 

KL Bansal, CMD, DEE Development Engineers, said, “DEE is an engineering company providing specialised process piping solutions for industries such as oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing. We have manufacturing experience of over three and a half decades.”

He said the company has seven manufacturing facilities — three in Palwal, Haryana, and one each in Anjar (Gujarat), Barmer (Rajasthan), Numaligarh (Assam), and Bangkok (Thailand).

The global market for process piping systems is expected to reach $54.5 billion by 2030. The Indian process piping solutions market is expected to register a CAGR of 6.1 per cent between FY2023 and FY2030.

“We at DEE plan to leverage market leading position in the industry to capitalise on the revival of capital expenditure cycle in the sectors that DEE services, which will drive the next phase of the company’s growth. We are forging technology tie-ups with select global OEMs to derive consistent order flow and provide integrated specialised process piping solutions, making DEE a preferred partner,” he added. 

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