Deepak Builders & Engineers India IPO to hit Dalal Street on October 21, closes on October 23

Deepak Builders & Engineers India IPO

Punjab-based Deepak Builders & Engineers India has finalised the opening date as October 21 for its initial public offering which is a combination of fresh issue and offer-for-sale. The company will disclose price band details in the coming couple of sessions.

The last day for IPO subscription will be October 23, while the anchor book for institutional investors will be launched on October 18, a day before the issue opening.

The engineering and construction company plans to issue 1.07 crore equity shares via fresh issue and the 21.1 lakh shares will be issued through offer-for-sale.

Deepak Kumar Singal and his wife, promoters of the company, will be selling shareholders in the offer-for-sale. They both hold nearly 100 percent stake in the company.

Fedex Securities is the sole book running lead manager to the issue, while Kfin Technologies is the registrar to the offer.

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Deepak Builders, competing with lister peers like IRCON International, Ahluwalia Contracts, PSP Projects, and ITD Cementation, undertakes construction & infrastructure projects, having orderbook of Rs 1,380.4 crore as of June 2024.

Currently, it has 12 ongoing projects, including six projects each from construction and infrastructure segments.

The company intends to spend Rs 30 crore out of the net fresh issue funds for repaying debt, Rs 111.96 crore for working capital requirements, and the remainder money for general corporate purposes.

Also read: Hyundai India IPO subscribed 18% on Day 1, retail portion booked 26%

On the financials front, it recorded net profit at Rs 60.4 crore for the year ended March 2024, growing significantly by 182.4 percent from Rs 21.4 crore in the previous fiscal, with revenue increasing by 18 percent to Rs 511.4 crore during the same period. EBITDA (earnings before interest, tax, depreciation, and amortisation) jumped 120.5 percent on-year to Rs 112.2 crore with margin expanding by 1,020 bps to 21.9 percent in the fiscal 2024.

In the April-June quarter of fiscal 2025, profit stood at Rs 14.2 crore on revenue of Rs 105.1 crore.

This will be the fourth company launching IPO in the current month, after Garuda Construction & Engineering, Hyundai Motor India, and Waaree Energies.