The initial public offering of Deepak Builders & Engineers India had a strong start on October 21, the first day of subscription. The issue received bids for 3.69 crore equity shares, higher by 4.12 times over the offer size of 89.67 lakh shares.
The engineering and construction company intends to mobilise Rs 260.04 crore through its initial share sale of 1.28 crore equity shares at the upper end of price band of Rs 192-203 per share.
According to the subscription data available on the exchanges, the major support to the public issue was seen from retail and non-institutional investors who bought 6.12 times and 4.26 times the allotted quotas, respectively. The qualified institutional buyers also showed good interest in the issue on day 1, subscribing 0.52 times the portion set aside for them.
The IPO of the Punjab-based company is a combination of fresh issue of 1.07 crore equity shares and an offer-for-sale of 21.1 lakh shares by promoters.
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Promoter Deepak Kumar Singal and his wife Sunita Singal will be selling shareholders in the offer-for-sale. The issue will close on October 23.
In previous week, Deepak Builders & Engineers has already raised over Rs 78 crore from 5 anchor investors on October 18 including Neomile Growth Fund, Citadel Capital Fund, Saint Capital Fund, Zeal Global Opportunities Fund, and Elite Capital Fund.
The company is going to utilise fresh issue proceeds mainly for repaying its debt, and working capital requirements, and the reminder for general corporate purposes.
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Currently, it has 12 ongoing projects with order book of 1,380.4 crore including seven EPC projects. Out of which, 66 percent projects are from railways segment.
Fedex Securities is the sole book running lead manager to the issue.
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