The initial public offering (IPO) of Deepak Builders and Engineers opens today for public and close on October 23. The company has fixed the price band at ₹192-203.
The ₹260.04 crore consists of a fresh issue worth ₹217.21 crore and an offer for sale of ₹42.83 crore. Promoter Deepak Kumar Singal and his wife, Sunita Singal, will be the selling shareholders in the OFS.
The lot size is 73 shares and in multiples thereafter. Deepak Builders & Engineers IPO has reserved 50 per cent of the shares in the public issue for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and 35 per cent for retail investors.
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5 anchor investors
The company raised ₹78.01 crore from five institutional investors via anchor book on October 18 as part of the IPO exercise. It has finalised the allocation of 38,42,939 shares to anchor investors—Neomile Growth Fund, Citadel Capital Fund, Saint Capital Fund, Zeal Global Opportunities Fund, and Elite Capital Fund—at ₹203 per share.
Deepak Builders will use ₹Rs 30 crore of the fresh issue proceeds to repay debt, ₹Rs 111.96 crore for working capital, and the remaining for general corporate purposes.
Deepak Builders & Engineers undertakes Construction and infrastructure Projects as EPC services on a fixed-sum turnkey basis as well as on an item-rate/percentage basis.
The company primarily focuses on construction projects but has diversified into structural work such as flyovers, rail over bridges, rail under bridges, approach roads, and other infrastructure projects. It undertakes construction and infrastructure projects both as EPC services and on an item-rate basis.
Currently, the company has 12 ongoing projects, including 7 EPC projects and five item-rate/percentage rate contracts. Of their total ongoing projects, the Construction Projects comprise four hospital and medical college projects, one administrative and institutional building, and one industrial building, and the Infrastructure Projects comprise four projects relating to the upgradation/ development/redevelopment of Railway Stations and related work and two roads and bridges projects relating to rail over bridges.
Fedex Securities has been appointed as the lead manager of the public offer.