DEE Piping Systems is set to launch its initial public offering (IPO) with the aim of raising ₹418.01 crores. The IPO will include a fresh issue of 1.6 crore shares aggregating to ₹325.00 crores and an offer for sale (OFS) of 0.46 crore shares aggregating to ₹93.01 crores. The IPO opens for subscription on June 19, 2024, and closes on June 21, 2024. The shares are expected to list on BSE and NSE on June 26, 2024. The minimum amount of investment required by retail investors is ₹14,819. The minimum lot size investment for sNII is 14 lots (1,022 shares), amounting to ₹207,466, and for bNII, it is 68 lots (4,964 shares), amounting to ₹1,007,692.
Founded in 1988, DEE Development Engineers Limited specializes in providing process piping solutions for industries such as oil and gas, power (including nuclear), chemicals, and more. The company manufactures high-pressure piping systems, spools, high-frequency induction pipe bends, longitudinally submerged arc welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids, and accessories like boiler superheater coils and de-superheaters.
DEE Development Engineers operates seven manufacturing facilities in Palwal (Haryana), Anjar (Gujarat), Barmer (Rajasthan), Numaligarh (Assam), and Bangkok (Thailand), with three in Palwal alone. The facilities had a cumulative installed capacity of 70,875 MT for the nine months ended December 31, 2023, with annual capacities of 94,500 MT, 91,500 MT, and 86,500 MT for Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively.
Recently, the company expanded into designing, engineering, fabricating, and manufacturing pilot plants at Palwal Facility III. As of March 31, 2024, DEE Development Engineers employs 1,061 people, including 54 highly skilled welders and 53 employees certified in non-destructive examination techniques.
DEE Development Engineers Limited has shown strong financial growth over the past few years. The company's revenue increased by 30.47% and profit after tax (PAT) rose by 58.25% between the financial year ending March 31, 2023, and March 31, 2022.
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets (₹ Cr) | 1,171.01 | 966.26 | 845.40 | 835.88 |
| Revenue (₹ Cr) | 557.86 | 614.32 | 470.84 | 513.03 |
| PAT (₹ Cr) | 14.34 | 12.97 | 8.20 | 14.21 |
| Net Worth (₹ Cr) | 428.19 | 413.70 | 401.37 | 448.50 |
| Reserves and Surplus (₹ Cr) | 380.23 | 408.17 | 395.85 | 432.81 |
| Total Borrowing (₹ Cr) | 407.14 | 352.62 | 285.36 | 257.17 |
The net proceeds from the fresh issue will be used for the following purposes:
DEE Piping Systems' IPO offers a compelling investment opportunity with its strong financial growth and strategic use of IPO proceeds. Investors should consider the company's performance, market conditions, and investment goals before subscribing to the IPO.
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