IPO screener: Dee Development Engineers IPO set for listing today, subscribed 99.47 times

Shares of Dee Development Engineers will be listed at the bourses on Wednesday. The ₹418-crore IPO saw a blockbuster response from all category investors. The company has fixed the IPO price as ₹203, at the upper end of the price band.

The IPO was subscribed 99.47 times. The IPO comprised a fresh issue of ₹325 crore and an offer-for-sale (OFS) of 45.82 lakh shares by the promoter, Krishan Lalit Bansal.

The quota reserved for qualified institutional buyers (QIBs) received a tumultuous response by being subscribing nearly 202 times, while the category meant for non-institutional investors was subscribed 143.43 times and the retail Investors’ portion 22.52 times subscription. The eEmployee portion was subscribed 44.38 times. Eligible employees (reserved 57,471 shares) would receive a discount of ₹19 a share.

Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said: Dee Development Engineers, a leading player in the niche and high-barrier Indian process piping solutions industry, is set for a spectacular stock market debut. The IPO has garnered immense investor interest and generated a grey market premium of ₹93, a 45 per cent premium over the issue price.

“Dee boasts a strong competitive edge, with established client relationships and a diverse portfolio of specialised offerings. The company further enjoys a robust order book and a track record of consistent financial performance. These factors contribute to the anticipated strong listing and potential for further growth,” he added.

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 ₹203 a share. HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, LIC MF Large, SBI General Insurance, and Morgan Stanely Asia were among the marquee companies that participated in the anchor book round.

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 design, procurement, and production, and its clientele includes JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill SA, Reliance Industries, HPCL Mittal Energy and Toshiba JSW Power Systems. The company has six strategically located manufacturing facilities in Haryana, Gujarat, Rajasthan and Thailand.

SBI Capital Markets and Equirus Capital are managers of the offer.