DEE Development IPO subscription status, Day 2: Issue subscribed 4.4x

DEE Development Engineers' initial public offering (IPO) was oversubscribed by 4.4 times on the second day of its subscription period which began on Wednesday and ends on Friday on June 21, 2024. 

Non Institutional Investors oversubscribed the issue 9.38 times, while the Retail Individual Investors(RIIs) subscribed the issue 4.79 times. Qualified Institutional Buyers (QIBs) only bid for 3 per cent of the shares allotted to them. 

The IPO allocates up to 50 per cent of the shares for qualified institutional buyers (QIBs), at least 35 per cent for retail investors, and a minimum of 15 per cent for non-institutional investors (NIIs).

As per Chittorgarh IPO, the latest grey market premium (GMP) for DEE Development Engineers IPO is Rs 95. With a price band of Rs 203, this suggests an estimated listing price of Rs 298 per share, projecting an expected listing gain of 46.80 per cent.

Through its IPO, the company aims to raise Rs 418.01 crores. The issue comprises a fresh issue of 1.6 crore shares amounting to Rs 325.00 crores and an offer for sale of 0.46 crore shares aggregating Rs 93.01 crore.
 

On June 18, the company secured Rs 125.10 crore from anchor investors, offering a total of 61,62,777 shares. Leading anchor investors included HDFC Mutual Fund, Kotak Mahindra Trustee, and LIC MF Large and Mid Cap Fund.

The price band of the IPO is fixed at Rs 193 to Rs 203 per share with a minimum lot size of 73 shares, requiring a minimum investment of Rs 14,819 for retail investors. For sNII (small non-institutional investors), the minimum investment is Rs 2,07,466 (14 lots or 1,022 shares), and for bNII (big non-institutional investors), it is Rs 10,07,692 (68 lots or 4,964 shares).

Post IPO, the company will have an earnings per share of Rs 2.77 with a price-to-earnings multiple of 73.33 times.

DEE Development Engineers also known as DEE Piping Systems specialises in providing customised process piping solutions for sectors such as oil and gas, power (including nuclear), chemicals, and other process industries through engineering, procurement, and manufacturing.