Dee Development Engineers seeks Sebi nod to raise funds through IPO

Piping solutions provider Dee Development Engineers Ltd has filed draft papers with capital markets regulator Sebi to mop up funds through an Initial Public Offering (IPO).

The initial share sale comprises fresh issuance of equity shares worth Rs 325 crore and an offer for sale of 79 lakh equity shares by a promoter Krishan Lalit Bansal, according to the Draft Red Herring Prospectus (DRHP).

Currently, Bansal owns 74.74 per cent stake in the company.

In addition, the company may consider mobilising Rs 65 crore in a pre-IPO placement round. If such placement is undertaken, the fresh issue size will be reduced.

As per the preliminary papers filed on Thursday, the funds mopped up through the fresh issuance of equity shares will be used for payment of debt, supporting working capital requirements and for general corporate purposes.

SBI Capital Markets and Equirus Capital have been appointed as merchant bankers to manage the company's maiden public issue. Equity shares of the engineering company will be listed on the BSE and NSE.

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

The company has six manufacturing facilities at Palwal in Haryana, Anjar in Gujarat, Barmer in Rajasthan, and Bangkok in Thailand.

Its customers include JGC Corporation, Nooter/Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill S A, Reliance Industries, HPCLMittal Energy Ltd, and Toshiba JSW Power Systems.