DEE Development Engineers IPO to open on June 19, Check the key issue details

The initial public offering (IPO) of DEE Development Engineers is set to open for bidding on Wednesday, June 19 and investors can apply for the IPO until Friday, June 21. The company is offering its shares in the fixed price band of Rs 193-203 apiece and investors can apply for a minimum of 73 equity shares and its multiples thereafter.
 

Founded in 1988, DEE Development Engineers is an engineering company that provides specialized process piping solutions for oil and gas, power (including nuclear), chemicals, and other process industries through engineering, procurement, and manufacturing.
 

The IPO of DEE Development Engineers includes a fresh share sale of up to Rs 325 crore, while an offer-for-sale (OFS) of up to 45.82 lakh equity shares by its promoter Krishan Lalit Bansal amounting to Rs 93.01 crore, at the upper end of the price band. The company is looking to raise a total of Rs 418.01 crore via its initial stake sale.
 

DEE Development Engineers intends to utilise the net proceeds from the Fresh Issue towards  funding working capital requirements of the company; prepayment/repayment of all or a portion of certain outstanding borrowings availed by the company; and general corporate purposes. Net proceeds from the OFS shall go to the selling shareholder of the company.
 

It also manufactures and supplies piping products, including high-pressure piping systems, piping spools, high frequency induction pipe bends, longitudinally submerged arc welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids, and accessories including boiler superheater coils, de-superheaters, and other customized components.
 

DEE Development Engineers has seven manufacturing facilities in Palwal, Haryana; Anjar, Gujarat; Barmer, Rajasthan; Numaligarh, Assam; and Bangkok, Thailand, with three manufacturing facilities located in Palwal, Haryana. The company recently expanded into a new business vertical, offering design, engineering, fabrication, and manufacturing of pilot plants at Palwal Facility.
 

DEE Development Engineers reported a net profit of Rs 14.34 crore with a revenue of Rs 380.23 crore for the nine months ended on December 31, 2023. The company's net profit came in at Rs 12.97 crore with a revenue of Rs 614.32 crore for the financial year 2022-23.
 

The company has reserved shares worth Rs 1 crore for the eligible employees of the company, who will get a discount of Rs 19 per share. It has reserved 50 per cent of the issue for the qualified institutional bidders (QIBs), while non-institutional investors have 15 per cent of the net offer.  Remaining 35 per cent of the net offer shall be allocated towards retail investors.
 

SBI Capital Markets and Equirus Capital are the book running lead managers of the DEE Piping Systems IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with June 26, Wednesday as the tentative date of listing.