DEE Development IPO Day 1: Issue subscribed 2.51 times, HNIs lead

On June 18, the firm had mobilised a little over Rs 125 crore from anchor investors ahead of its initial share-sale.

The initial share sale of DEE Development Engineers has received strong subscription from retail and non institutional investors on the first day of bidding, June 19.

The Rs 418-crore IPO has been subscribed 2.51 times with investors buying 3.74 crore equity shares against the offer size of 1.49 crore equity shares, the subscription data of exchanges showed.

Non-institutional investors portion was subscribed 5.29 times the allotted quota, followed by retail investors who have bought 2.68 times the reserved portion. The portion set aside for qualified institutional buyers was booked 0.02 times, while employee portion got subscribed 7.06 times.

Piping solutions provider's initial public offering 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. The IPO will close on June 21.

On June 18, the firm had mobilised a little over Rs 125 crore from anchor investors ahead of its initial share-sale.

Citigroup Global Markets Mauritius, Morgan Stanley Asia (Singapore) Pte, Aurigin Master Fund, Pinebridge Global Funds, SBI General Insurance Company, are among the funds who have been allocated shares. In addition, Kotak Mahindra Mutual Fund, LIC Mutual Fund, HDFC Mutual Fund and Aditya Birla Sun Life Mutual Fund have been allocated shares in the anchor round.

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 Rs 75 crore will be used for general corporate purposes.

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.

SBI Capital Markets and Equirus Capital are the merchant bankers to manage the company's maiden public issue.