Shares of Deepak Builders & Engineers India Ltd (DBEIL) debuted on a muted note on Monday, listing at Rs 198.50 on the BSE with a 2.2% discount to the issue price of Rs 203. On the National Stock Exchange (NSE), shares opened with a 1.4% dip at Rs 200.
This performance sharply contrasts with expectations fueled by a grey market premium (GMP) that suggested listing gains of over 15.76%. However, instead of rallying, Deepak Builders’ stock continued to slip after listing as it fell 14.1% to Rs 171.60 on the NSE by 10:29 AM.
The IPO offered a price band of Rs 152-160 per share, with a lot size of 90 shares, and the allotment was finalised on October 24, 2024. The offering comprised a fresh issue of 1.07 crore shares, raising around Rs 217.21 crore, and an offer for sale (OFS) of 21 lakh shares, totaling Rs 42.83 crore.
Overall, the IPO received a healthy subscription as it was oversubscribed by 41.54 times, primarily due to overwhelming demand from Non-Institutional Investors (NIIs), who subscribed 82.47 times. Retail investors followed closely, subscribing 39.79 times, while Qualified Institutional Buyers (QIBs) subscribed 13.91 times.
The public issue generated substantial interest among investors due to DBEIL’s reputation in the engineering and construction sector. The company intends to use the proceeds from the IPO for debt repayment, funding working capital requirements, and general corporate purposes.
The company, which operates in the engineering and construction segments, is known for its expertise in projects, including administrative buildings, healthcare facilities, residential and industrial projects, historical memorials, and sports complexes. It Offers end-to-end construction and project management services.
In the financial year through March 2024, the company’s net revenue rose to Rs 511 crore from Rs 433 crore. On the other hand, the company’s net profit surged to Rs 21.3 crore in FY24 from Rs 17.6 crore in the fiscal before.