16-Apr-2024
2 mins read
Deepak Builders & Engineers India IPO is offering a 100% book-built public issue. This upcoming IPO is offering a fresh issue of up to 12,000,000 equity shares and an offer for sale of 2,400,000 of equity shares, the total aggregated size of an offer is accumulated to 14,400,000 of equity shares. The face value is reported as Rs. 10 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for Non-Institutional Investors and the remaining 35% or more reserved for Retail Individuals. Application for public issue and subscription opening/closing dates and other important dates will be announced soon; however, keep in mind that the public offering is proposed to be listed on both the exchanges, i.e. NSE and BSE.
About the Company
Deepak Builders & Engineers, incorporated in September 2017, acquired the business of M/s. Deepak Builders, a partnership firm ("Deepak Builders Partnership Firm" or "Erstwhile Firm"), vide a Business Takeover Agreement dated March 1, 2018. Deepak Builders Partnership Firm was constituted by their Promoter, Deepak Kumar Singal, on April 1, 1990. They are an integrated engineering and construction company specializing in the execution and construction of administrative & institutional buildings, hospitals and medical colleges and various developmental and other construction activities ("Construction Projects"). Undertake Construction & Infrastructure Projects both, as EPC services on a fixed sum turnkey basis as well as on an item-rate basis/percentage basis currently, the company has 11 ongoing projects, including 6 EPC projects and 5 item-rate/percentage rate contracts.
Objectives of the Public Offering
Company proposes to utilize the Net Proceeds towards Repayment and / or prepayment, in full, or part, of certain borrowings availed by the company. However, the company proposed to utilize up to ₹95 Crore from the Net Proceeds to fund the working capital requirements of our company in the Fiscal 2025 and rest of the funding toward the general corporate purposes.
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Financials of the Company (Amt in Crores)
The company reported net revenue of Rs 435.46 Crore, assets worth Rs 145.36 Crore, and profit after tax reported as Rs 21.40 Crore for the FY 22-23. It is clear that the PAT increased by 21.17%, and revenue rose by 19.30%
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 171.14 | 145.36 | 120.27 | 84.17 |
| Revenue | 251.6 | 435.46 | 364.99 | 312.04 |
| Profit After Tax | 20.63 | 21.4 | 17.66 | 12.93 |
| Net Worth | 72.67 | 19.42 | 10.83 | 9.69 |
| Reserves and Surplus | 84.73 | 64.66 | 48.84 | 32.43 |
| Total Borrowing | 77.82 | 33.18 | 31.5 | 25.74 |
Key Performance Indicators of Deepak Builders & Engineers India Limited
Key performance indicators of the Company reported a Return on Capital Employed as 26.10%, a Return on Net Worth of 26.80%, a Profit after-tax margin of 4.94% and a Return on Equity as 25.70 % for the year ended March 2023. If we look at the EBITDA margin, it is reported as 12.20% for the same FY.
Lead manager, Registrar of IPO & Promoters of the Company
The IPO is managed by Fedex Securities Private Limited, which is the book-running lead manager. Whereas Kfin Technologies Limited has been appointed as the registrar for the issue, and the promoters of the Deepak Kumar Singal and Sunita Singal.
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