Deepak Builders and Engineers IPO was fully booked within two hours of the launch, which was primarily driven by the retail investors, subscribing the issue 1.7 times. The non-institutional investors booked the issue 0.69 times while the qualitative institutional booked the issue zero times. 

The company received bids worth Rs 181.92 crore from investors. The retail buyers’ bids were of Rs 155.06 crore while from NIIs were of Rs 26.836 crore. 

Deepak Builders & Engineers IPO GMP

The stocks of Deepak Builders & Engineers were commanding a premium of 30% or Rs 60 to the issue price in the grey market. The premium in the unofficial market indicates a listing pop for the stock. The grey market is an unregulated place to trade shares illegally. 

Deepak Builders & Engineers IPO Details

The company opened the IPO to investors on October 21. The IPO will close on October 23. The company will raise a sum of Rs 260 crore via a combination of fresh shares and an OFS component. The company set the IPO price band between Rs 192 to Rs 203 per equity share.  The allotment of shares is expected to be finalised on October 24. The listing on NSE and BSE will likely be on October 28, as per the tentative schedule. Fedex Securities is the sole book-runner of the IPO and Kfin Technologies registrar.

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Deepak Builders  IPO Review

The company established a strong market presence which shows its credibility in the EPC segment. It has a diversified project portfolio which reduces its reliance on a single market segment. As of June 2024, the company has some litigations towards projects amounting to Rs 88.4 crore (6% of the total order book). 

“We believe that the liability of this should not impact the ongoing concern about the company’s profitability. With a strong order book, Deepak Builders has a growth potential visibility in the infrastructure sector which aligns them with government initiatives. At the upper price band company is valuing at a P/E of 15.6x with a market cap of Rs 945.5 crore post-issue of equity shares and a return on net worth of 52.9%,” said Anand Rathi Research in an IPO note. 

The brokerage house believes that the company is fairly valued at the upper price band. It gave a “Subscribe” rating to the IPO.

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