DEE Development Engineers IPO Stellar Debut; Lists At 60% Premium
During its subscription phase, Qualified Institutions places bids over 200 times, whereas the issue was subscribed by 103 times
Dee Development Engineers' initial public offering (IPO) which attempted to raise Rs 418 crore, kicked-off its bourses journey with with over 60 per cent premium.
The IPO listed at Rs 325 per share on the Bombay Stock Exchange (BSE) against its issue price of Rs 203 per share.
During its subscription phase, Qualified Institutions placed bids over 200 times, whereas retail subscription crossed 23 times. Overall, the issue was subscribed by 103 times.
The IPO consisted of fresh issues of Rs 325 crore and an offer-for-sale (OFS) worth Rs 93 crore by promoter and investor selling shareholders with a price band of Rs 193 to Rs 203.
SBI Capital Markets and Equirus Capital were the book running lead managers, while Link Intime India was the registrar to the offer.
Analyst Note
Amit Goel, Co-Founder and Chief Global Strategist, Pace 360 advised investors to stay away from long-term investment in this counter as he believed Indian markets are the biggest bubble ever in the history of world equity markets. In the short term, however, it might outperform the markets.
IPO Objectives
Company intends to utilise the net proceeds of Rs 325 crore towards funding working capital requirement and repayment of debt along with general corporate purposes.
Besides, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
The firm registered revenue of Rs 614 crore in FY23, compared to Rs 470 crore in FY22.
The firm’s profit after tax (PAT) increased to Rs 12.97 crore in FY23 compared to Rs 8.20 crore in FY22.
Overall, revenue and PAT increased by 30.47 per cent and 58.25 per cent respectively.
