Deepak Builders & Engineers make a muted stock market debut; lists at 2% discount

Shares of Deepak Builders & Engineers India made a muted debut at Dalal Street on Monday as the construction player was listed at Rs 198.50 on BSE, a discount of 2.22 per cent over its issue price of Rs 203. Similarly, the stock was listed with a discount of 1.48 per cent at Rs 200 on NSE over the given issue price.

Listing of Deepak Builders & Engineers India has been on the expected lines. Ahead of its debuts, shares of Deepak Builders were commanding a grey market premium (GMP) premium of Rs 32 per share, suggesting a listing pop of around 16 per cent for the investors on listing. The GMP on the last day of the bidding stood at Rs 50.

The IPO of Deepak Builders & Engineers ran for bidding between October 21 and October 23. The company had offered its shares in the fixed price band of Rs 192-203 per share with a lot size of 73 shares. It raised about Rs 260.04 crore via its primary offering, which included a fresh share sale of Rs 217.21 crore and an offer-for-sale (OFS) of 21.10 lakh equity shares.

The issue saw a mixed bidding and was overall subscribed 41.54 times. The quota for non-institutional investors (NIIs) was booked 82.47 times. The portion reserved for retail investors saw bidding for 39.79 times. The allocation for qualified institutional bidders (QIBs) was booked 13.91 times during the three-day bidding process.

Incorporated in September 2017, Deepak Builders & Engineers India is a construction company specializing in administrative, institutional, and industrial buildings, hospitals, stadiums, residential complexes, and other construction activities. Its business can be categorized into construction projects; infrastructure projects business; and sale of products.

Brokerages had a positive view on the issue and suggested subscribing for a long term. Fedex Securities was the sole book running lead manager of the Deepak Builders & Engineers IPO, while Kfin Technologies served as the registrar for the issue.