Shares of Deepak Builders & Engineers made a weak start on its stock market debut on October 28 after listing at Rs 200. That translates to a discount of 1.5 percent over the issue price of Rs 203 per share on the NSE.
The listing, however, completely misses grey market estimates where shares were trading at a premium of 16 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
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Despite weakening sentiment in equity markets, investors showed strong confidence in Deepak Builders & Engineers India, with its initial share sale receiving bids for 37.24 crore equity shares—41.54 times the offer size of 89.67 lakh shares.
Non-institutional investors (HNIs) led the demand, subscribing 82.47 times their allotted quota, followed by retail investors who bid for 39.79 times their reserved portion. Qualified institutional buyers also displayed strong interest, subscribing to 13.91 times their allocation.
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The Ludhiana-based company, which raised Rs 78 crore from anchor investors on October 18, plans to use Rs 142 crore of net fresh issue proceeds to repay debt and meet working capital needs, with the balance allocated for general corporate purposes.
Established in 2017, Deepak Builders & Engineers India Limited specializes in constructing administrative, institutional, and industrial buildings, as well as hospitals, stadiums, and residential complexes. The company has executed turnkey projects covering architecture, civil work, MEP, firefighting, IT systems, medical gas pipelines, and landscaping, among other services.
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