The shares of the company are trading at a grey market premium (GMP) of Rs 50.
The company has fixed a price band of Rs 192-203 apiece for the issue and the same will be a combination of fresh equity sale of Rs 217 crore and an offer for sale (OFS) of 21 lakh shares.
About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and the other 15% for non-institutional investors. Investors can place bids for 73 shares in one lot and in multiples thereafter.
IPO funds to the tune of Rs 95 crore will be used for working capital requirements of the company and Rs 30 crore for payment of debt, besides, a portion will be utilised for general corporate purposes, as per the draft papers filed last week.
Deepak Builders is an integrated engineering and construction company, specialising in execution and construction of administrative and institutional buildings, hospitals and medical colleges, industrial buildings, historical memorial complex, stadiums and sports complex, and residential complexes.It has diversified in undertaking specialised structural work such as flyovers, approach roads, rail under bridges, rail over bridges and development and redevelopment of railway stations.The company executes projects on a turnkey basis consisting of architectural and structural, civil, HVAC, MEP, etc. In addition to revenue from EPC projects on a fixed-sum turnkey basis as well as on an item-rate basis, it also derives revenue from sale of residue construction products.
Its EPC projects contribute nearly 45% to the overall revenue, while item-rate or percentage basis projects make up 30% of the sales. Besides, about 25% of the revenue comes from sale of products.
For FY24, revenue from operations stood at Rs 511 crore, up from Rs 433 crore a year ago. Net profit after tax more than doubled to Rs 60.4 crore.
Fedex Securities is the sole book-running lead manager to the issue.
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