MUMBAI, 12 JUNE, 2024 (TGN): Piping solutions provider with over 3 decades of expertise Dee Development Engineers Ltd on Wednesday announced to raise Rs 418 crore through its Initial Public Offering (IPO), which will open for public subscription on Wednesday 19 June, 2024.
The issue, with a price band of Rs 193-203 a piece, will conclude on Friday, June 21. The bidding for anchor investors will open on Tuesday, June 18.
The initial share sale comprises fresh issuance of equity shares worth Rs 325 crore and an offer for sale of 45.82 lakh equity shares valued at Rs 93 crore by promoter and CMD Krishan Lalit Bansal at the upper end of the price band. This takes the IPO size to Rs 418 crore.
Currently, Bansal owns a 74.74 per cent stake in the company.
Of Rs 325 crore proceeds, Rs 175 crore will be used for payment of debt, Rs 75 crore for funding the working capital requirements, and the remaining 75 crore will be used for general corporate purposes, the company’s CFO Sameer Agarwal told TGN Network reporter.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Further, investors can bid for a minimum of 73 equity shares and in multiples thereof.
Dee Developments is an engineering company, providing specialised process piping solutions for industries like oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing.
At present, the company has seven manufacturing facilities, with three at Palwal in Haryana, one each at Anjar in Gujarat, Barmer in Rajasthan, Numaligarh in Assam and Bangkok in Thailand, Bansal said.
The company’s customers 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, he added.
SBI Capital Markets and Equirus Capital are the merchant bankers to manage the company’s maiden public issue. Equity shares of the engineering company will be listed on the BSE and NSE.
DEE Development Engineers Limited had filed the DRHP dated September 28, 2023 with SEBI on September 28, 2023 and the RHP dated March [•], 2024 with the RoC. The RHP is available on www.deepiping.com, SEBI at www.sebi.gov.in, as well as on the websites of the BRLMs, i.e. www.sbicaps.com & www.equirus.com and the websites of National Stock Exchange of India Limited and BSE Limited at www.nseindia.com and www.bseindia.com, respectively. Ends (TGN)
