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Deepak Builders & Engineers Ltd. is launching its IPO from October 21 to October 23, 2024, with a price band of ₹192 to ₹203 per share. This IPO, categorized as a Mainboard IPO, aims to raise ₹260.04 crore, comprising a fresh issue of 10,700,000 shares worth ₹217.21 crore and an offer for sale (OFS) of 2,110,000 shares worth ₹42.83 crore.
The company specializes in constructing hospitals, stadiums, residential buildings, and industrial projects. Established in 2017, Deepak Builders has a significant presence in states like Punjab, Haryana, Rajasthan, Uttarakhand, and regions like Delhi and Chandigarh. It currently manages 12 projects, including infrastructure developments and medical facility constructions.
Financially, the company has shown robust growth with a 19% increase in revenue and a 182% rise in profit after tax (PAT) for the fiscal year ending March 2024. Its order book stands strong, reflecting a diversified portfolio across various sectors.
Deepak Builders & Engineers has maintained a competitive edge with a P/E ratio of 12.05x for FY 2024, which is lower than the industry average of 25.03x, indicating a potential undervaluation.
Objectives of the IPO:
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Repayment or partial prepayment of certain loans.
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Funding the company’s working capital requirements.
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General corporate purposes.
Strengths:
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Established presence in the construction sector.
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Diversified order book with government clientele.
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Strong financial growth.
Weaknesses:
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High dependency on government projects.
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Regional concentration in Punjab and nearby areas.
The IPO is set to list on BSE and NSE on October 28, 2024, making it a potential investment for those looking to capitalize on the construction sector’s growth.
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