Dee Development Engineers LTD ..IPO..Should you apply or not ?gmp,review..

Last Updated on: 16th June 2024, 05:40 pm

Dee Development Engineer Ltd also known as Dee piping system ,has come up with an IPO.The company is more than 40 years old and is leader in its manufacturing category.

About

DEE Development Engineers Limited is an ISO certified company founded by Mr K L.Bansal in the year 1988. It is an Engineering Company providing process piping solution to Industries such as oil and gas , chemicals power , nuclear power, and many other process industries. Manufacture and supply piping products high pressure piping system, high frequency induction pipe bends, industrial pipe fittings, other customised manufactured components.

The company has manufacturing experience of over three decades and is one of the largest player in Process piping solutions in India.

Product and offering

The company has business into following category:


A) Shop fabricated piping– the company provides comprehensive specialised process piping solution includes Engineering Services basic engineering detailed engineering and support engineering. They also specialised in handling Complex metal super duplex stainless steel alloy Steel.
B) Skid and modular piping– the company also provide modular piping solutions.
modular skits and modules are self contained piping system wearing machinery instrumentation inclusion of frame or module
C) Induction pipe bends– induction pipe winds are also known as welldless pipe, are pipes bent and desired angles .
D )Heavy fabrication– the company offers heavy fabrication facility at Anjar, spanning and area of approximately 88429.61 square, operated by their Holy own subsidiary DFIPL. There the company manufacturers wind turbine Towers and industrial stacks.

Manufacturing facilities


The company has manufacturing facilities in three different places in India and one outside India.
The facilities are located at :

1)Palwal in Haryana,

2)Anjar in Gujarat,

3)Barmer in Rajasthan, and

4)Bangkok in Thailand.

Biomass power plants

The company also has two Biomass power plant in Punjab
1) Abohar Biomass power plant
2) Muktsar Biomass power plant

Strength

Company is the leading player in the industry. As it is the process Engineering Company there are significant barriers to entry.

Company Financials

ParticularsYear ended 31.3.23year ended31.3.22year ended 31.3.21
Revenue from Operation5954.954609.164952.17
Profit before tax203.72132.9489.49
EPS Basic2.451.532.44
EPS Diluted2.451.532.44
All amounts in Rs.million unless otherwise stated.

Dee Piping System IPO

The company is coming up with an IPO on 19th June,2024 and the last date would be 21st ,June,2024.

Object of the Issue

Proceeds from Offer for Sale:

The company stated in RHP that the proceeds from offer from sale will be given to the investor selling it and will not be taken by the company.

Proceeds from Fresh Issue

The company proposes to utilise the Net Proceeds from Fresh Issue towardsfunding the following objects:

1)Funding working capital requirements of the company;

2) Prepayment or repayment of portion or all of borrowing;

3) General corporate purpose.

IPO Details

IPO Open Date 19th,June, 2024
IPO Closes On 21st,June,2024
Total issue size 20591852 shares = Rs.418.01crores
Fresh Issue 160 Rs.325 crores
Offer for Sale 4582000= Rs.93.01 crores
Price BandRs.193 to Rs.203 per share
Face Value
Rs.10 per share
Lot Size73 shares
Discount for employeesRs…
Issue typeBook build issue IPO

Application Details

CategoryLotsNo.Of SharesAmount(Rs)
Retail(min)17314819
Retail (max)13949192647
HNI(big)(Min)6849641007692
HNI(Small)(Min)141022207466
HNI(Small)(Max)674891992873

IPO Schedule

Dee Deelopment Engineers IPO opens on 19,June,2024
Dee Deelopment Engineers IPO Closes on21,June,2024
Allotment Basis24,June,2024
Upi Mandate 21,June,2024,5PM
Refund25,June,2024
Share Allotment25,June,2024
Listing Date26,June,2024
All the dates mentioned above are tentative,except the start date of IPO and the end date.

Basis Of Allotment

CategoryLimit
QIBNot above 50% of net issue
Non Institutional BiddersNot less than 15% of net issue

Book Running Lead Managers

  1. SBI Capital Markets Ltd.
  2. Equirus Capital Pvt Ltd.

Analysis

The company is well established in its category.The segment in which the company is working needs lot of expertise and experience so theere is an entry barrier and less chance of new entrant threats.

Company’s financial seems to be comfortable at this level,and it is an old companyThe objective of the issue to reduce debt also creates a possitive factor.

The cons are also there,the company has business mainly with oil ,gas companies ,if there is any changes in energy consumption or any replacement for oil ang gas this could adversly affect the business. So one should do thorough analysys before taking any investment decision.

Disclaimer: Mint Mantra provides the articles and information gathered from other sites like company website and declaration to exchange and is for informational purpose only and this should not be construed as any advice for investment of any kind.Readers are suggested to consult the qualified financial consultant before making any investment decisionThe brands and logo used are of their repective company.

FAQ

Who is the Owner of DEE Development Engineers Ltd?

Ans: Dee Development Engineers Ltd was started by Mr.KL Bansal.

When will the Dee Piping system IPO list?

Ans: The tentative listing date for Dee piping system is 26,June,2024.

What is the IPO price of Dee Development Engineers Ltd?

Ans: The price band for the IPO of Dee Development Engineers Ltd. is Rs.193 to 203 per share.

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