The Dee Development Engineers’ initial public offering (IPO) will close for subscription today. The initial publiIPO which came out with a price band of ₹193-203 was subscribed 9 times at the end of Day-2 on Thursday. Investors can bid for a minimum of 73 equity shares.
The ₹418-crore IPO comprises a fresh issue of ₹325 crore and an offer-for-sale (OFS) of 45,82,000 shares by the promoter Krishan Lalit Bansal.
The IPO saw a blockbuster response from non-institutions and retail investors. The IPO received bids for 13,44,43,005 shares against 1,49,44,944 shares on offer.
Dee Development IPO has allocated up to 50 per cent of issue to qualified institutional buyers (QIB), 15 per cent for NIIs, and 35 per cent for retail investors.
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Eligible employees (up to 57,471 shares) who bid in the employee reserve section would receive a discount of ₹19 per equity share. The portion for NIIs received 21.73 times subscription while the category for retail investors got subscribed 8.43 times. However, the category for QIBs received 16 per cent subscription. The employee portion has been subscribed 18.79 times.
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Dee Developments is an engineering firm that provides specialised process pipe solutions to sectors such as oil and gas, electricity (including nuclear), chemicals, and others through designing, procurement, and production and its clientele include JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill SA, Reliance Industries, HPCLMittal Energy Ltd, and Toshiba JSW Power Systems. The company has six strategically located manufacturing facilities in Haryana, Gujarat, Rajasthan and Thailand.
The company will use the net proceeds from the fresh issue towards funding working capital requirements of the company, repayment of certain outstanding borrowings availed by the company, and general corporate purposes.
Dee Development has raised over ₹125 crore from anchor investors. It has allocated 61,62,777 equity shares to anchor investors at the allocation price of ₹203 per share. HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, LIC MF Large, SBI General Insurance, Morgan Stanely Asia were among the marquee companies who participated the anchor book round.