DEE Development Engineers Ltd. made a stellar debut on the stock exchange on Wednesday, June 26, with its shares listing at a premium of 67% over the issue price of ₹203. This impressive listing surpassed grey market expectations, where shares were trading at a 44% premium.

Key Highlights:

• IPO Price and Listing: Shares listed at a 67% premium over the issue price of ₹203.
• Grey Market Premium: Shares were trading at a 44% premium in the grey market before the listing.
• Anchor Investors: The company raised over ₹125 crore from anchor investors, including Citigroup Global Markets Mauritius, Morgan Stanley Asia (Singapore) Pte, and Aurigin Master Fund.

Competitive Edge and Financial Performance:

DEE Development Engineers boasts a strong competitive edge due to established client relationships, a diverse portfolio of specialized offerings, and a robust order book. The company has a consistent track record of financial performance, contributing to the strong listing and potential for further growth.

IPO Details:

• Price Range: The shares were sold in the price range of ₹193 to ₹203 apiece.
• Lot Size: One lot comprised 73 equity shares, with multiples thereafter.
• Offer Components: The public offer included a fresh share sale of up to ₹325 crore and an offer-for-sale (OFS) of up to 45.82 lakh equity shares, aggregating up to ₹93 crore, by promoter Krishan Lalit Bansal.

Currently, Bansal owns a 74.74% stake in the company. Proceeds from the fresh issue will be used to fund working capital requirements, repay certain outstanding borrowings, and for general corporate purposes.

Company Profile:

DEE Development Engineers provides specialized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals, and other process industries. The company also manufactures piping products. With six strategically located manufacturing facilities in Haryana, Gujarat, Rajasthan, and Thailand, DEE Development is the largest player in process piping solutions in India, in terms of installed capacity.

Financial Performance:

For the nine months ended December 31, 2023, DEE Development Engineers posted a net profit of ₹14.34 crore on a revenue of ₹380.23 crore. For the financial year 2022-23, the company reported a net profit of ₹12.97 crore and a revenue of ₹614.32 crore.

With a robust start on the stock market, DEE Development Engineers has set a positive tone for its future growth. The strong listing performance, coupled with its competitive edge and solid financials, positions the company well for continued success in the industry.