Dee Development Engineers (IPO) open for the public subscription on 19 June, targeted to raise Rs 418 crore. Also, Dee Development Engineers Secures ₹125 Crore from Anchor Investors Ahead of ₹418 Crore IPO. In an impressive move, piping solutions provider Dee Development Engineers Ltd has successfully mobilized over ₹125 crore from anchor investors prior to its eagerly awaited Initial Public Offering (IPO). The ₹418-crore IPO is set to open for public subscription on June 19 and will close on June 21.
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Anchor Investors Show Strong Confidence
On Tuesday, Dee Development Engineers announced that it has allotted 61.63 lakh equity shares at ₹203 apiece to 19 funds, amounting to ₹125.1 crore. This significant anchor round saw participation from prominent investors including Citigroup Global Markets Mauritius, Morgan Stanley Asia (Singapore) Pte, Aurigin Master Fund, Pinebridge Global Funds, and SBI General Insurance Company. Additionally, well-known domestic mutual funds like Kotak Mahindra Mutual Fund, LIC Mutual Fund, HDFC Mutual Fund, and Aditya Birla Sun Life Mutual Fund also took part.
Dee Development Engineers IPO Details and Structure
The IPO comprises a fresh issuance of equity shares worth ₹325 crore and an offer-for-sale (OFS) of 45.82 lakh equity shares, valued at ₹93 crore, by the promoter and Chairman and Managing Director, Krishan Lalit Bansal. This structure brings the total IPO size to ₹418 crore. Currently, Bansal holds a 74.74% stake in the company.
Shares will be available for subscription in a price band ranging from ₹193 to ₹203 per share. The proceeds from the fresh issue will be strategically utilized to strengthen the company’s financial position:
- ₹175 crore will be allocated for debt repayment.
- ₹75 crore will fund working capital requirements.
- The remaining ₹75 crore will be used for general corporate purposes.
More About Dee Development Engineers Ltd
Dee Development Engineers Ltd is a prominent player in the engineering sector, specializing in process piping solutions for various industries, including oil and gas, power (nuclear included), chemicals, and other process industries. The company’s services encompass engineering, procurement, and manufacturing.
The firm boasts seven state-of-the-art manufacturing facilities located in Palwal (Haryana), Anjar (Gujarat), Barmer (Rajasthan), Numaligarh (Assam), and Bangkok (Thailand).
Clientele and Market Presence
Dee Development Engineers serves an esteemed list of clients such as JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill SA, Reliance Industries, HPCL-Mittal Energy Ltd, and Toshiba JSW Power Systems. This extensive clientele underscores the company's reputation and reliability in delivering high-quality piping solutions.
Listing and Merchant Bankers
Post-IPO, the equity shares of Dee Development Engineers will be listed on both the BSE and NSE, providing investors with an opportunity to be part of a robust and growing engineering company. SBI Capital Markets and Equirus Capital are the merchant bankers managing this significant public issue.
Conclusion
Dee Development Engineers’ strong anchor investor turnout and strategic financial plans reflect a promising outlook for its upcoming IPO. With its extensive industry expertise, diverse client base, and robust financial strategy, the company is poised for significant growth and market expansion. Investors keen on the engineering sector should keep a close watch on this IPO opening on June 19.
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