Deepak Builders IPO: Here are 10 Key things you need to know

1. IPO Dates and Objectives:Deepak Builders & Engineers IPO opens on October 21, 2024, and closes on October 23, 2024. The IPO aims to raise ₹260.04 Crores, including a fresh issue of ₹217.21 Crores and an offer for sale of ₹42.83 Crores, consisting of 2,110,000 equity shares.
2. Company Overview:Founded in 2017, Deepak Builders & Engineers India Limited is a construction company based in Punjab. It specializes in building hospitals, medical colleges, industrial buildings, and institutional facilities, having completed 16 projects, including the Jung e Azadi memorial in Jalandhar, with a total contract value of ₹2,183.60 million.
3. IPO Allocation:The IPO allocation is divided into 35% for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net-worth Individuals (HNIs).
4. Price Band and Market Lot:The price band for the IPO is set at ₹192 – ₹203 per share. The minimum lot size is 73 shares, amounting to ₹14,819, with a maximum of 949 shares (₹192,647) for retail investors.
5. Use of IPO Funds:The funds raised will be allocated for:

• Repayment or prepayment of certain borrowings.
• Meeting working capital needs.
• General corporate purposes to support business expansion.

6. Financial Performance:Over the years, Deepak Builders has shown consistent growth:

• 2021: Revenue of ₹312.04 Cr, Profit: ₹12.93 Cr
• 2022: Revenue of ₹364.99 Cr, Profit: ₹17.66 Cr
• 2023: Revenue of ₹435.46 Cr, Profit: ₹21.40 Cr
• 2024: Revenue of ₹516.74 Cr, Profit: ₹60.41 Cr

7. Valuation Highlights:The company’s financial metrics include a Return on Equity (ROE) of 39.39%, Return on Capital Employed (ROCE) of 41.72%, and an Earnings Per Share (EPS) of ₹16.84. The debt-to-equity ratio is 1.00.
8. IPO Timeline

• Basis of Allotment: October 24, 2024
• Refunds: October 25, 2024
• Credit to Demat Accounts: October 25, 2024
• Listing Date: October 28, 2024

9. Application Process:Investors can apply for the IPO via ASBA through their bank accounts or stock broker platforms like M-Stock, Alice Blue, and Motilal Oswal, using UPI or net banking.
10. Peer Comparison:Key competitors include IRCON International, Ahluwalia Contracts, PSP Projects, and ITD Cementation. Deepak Builders stands out with its strong financial performance and growth trajectory.

Conclusion:Deepak Builders & Engineers IPO presents a significant investment opportunity for those looking to invest in a growing construction company with a solid portfolio and promising financials. The company’s focus on reducing debt and expanding its working capital suggests strong future growth potential.