DEE Development Engineers IPO subscribed 2.51 times on Day 1 of offer

The initial public offer of piping solutions provider DEE Development Engineers got fully subscribed on the first day of bidding on Wednesday and ended with 2.51 times subscription.

The Rs 418 crore initial share sale received bids for 3,74,51,044 shares against 1,49,44,944 shares on offer, as per NSE data.

The portion for non-institutional investors received 5.29 times subscription while the category for Retail Individual Investors (RIIs) got subscribed 2.67 times. The category for Qualified Institutional Buyers (QIBs) received 2 per cent subscription.

The Initial Public Offer (IPO) has a fresh issue of up to Rs 325 crore and an offer for sale of up to 45,82,000 equity shares.

The price range for the offer is fixed at Rs 193-203 per share.

Dee Development Engineers Ltd on Tuesday said it has mobilised a little over Rs 125 crore from anchor investors.

Of the Rs 325 crore fresh issue proceeds, Rs 175 crore will be used for payment of debt, Rs 75 crore for funding working capital requirements, and the remaining Rs 75 crore will be used for general corporate purposes.

Dee Developments is an engineering company, providing specialised process piping solutions for industries like oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing.

At present, the company has seven manufacturing facilities, with three at Palwal in Haryana, one each at Anjar in Gujarat, Barmer in Rajasthan, Numaligarh in Assam and Bangkok in Thailand.

The company's customers include JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill SA, Reliance Industries, HPCLMittal Energy Ltd and Toshiba JSW Power Systems.

SBI Capital Markets and Equirus Capital are managers to the offer.

Shares of the engineering company will be listed on the BSE and NSE.