Deepak Builders shares list at over 2% discount, miss IPO GMP trend

Deepak Builders IPO listing today: Shares of Deepak Builders & Engineers made a subdued debut on bourses on Monday. On the BSE, Deepak Builders shares listed at Rs 198.50, reflecting a discount of 2.2 percent against the IPO issue price of Rs 203. 

 

Similarly, on the National Stock Exchange (NSE), Deepak Builders listed at a discount of Rs 3 or 1.4 percent against the IPO issue price. Ahead of its listing, the grey market premium (GMP) of Deepak Builders IPO zoomed over 15.76 percent, indicating strong listing gains for the investors.  Post listing the stock price was in free fall as at around 10:08 AM; the shares of the company dipped 14.3 per cent at Rs 173.80 per share on the BSE. 

 

The allotment for the Deepak Builders IPO shares, available at a price band of Rs 152-160 per share with a lot size of 90 shares, was finalised on Thursday, October 24, 2024. With the IPO, Deepak Builders offered a fresh issue of 10,700,000 shares worth approximately Rs 217.21 crore and an offer for sale (OFS) of 2,110,000 shares with a face value of Rs 10 apiece, totaling around Rs 42.83 crore. 

 

The public issue received strong demand from investors, with the IPO being subscribed 41.54 times by the final day of subscription, riding on the back of the Non-Institutional Investors (NIIs) who placed the highest bids for the IPO, with a subscription of 82.47 times, followed by retail investors at 39.79 times, and Qualified Institutional Buyers (QIBs) at 13.91 times, as per the NSE data. 

 

Deepak Builders proposed to utilise the IPO proceeds for the repayment or prepayment, in full or part, of certain borrowings availed by the company, as well as for funding working capital requirements and general corporate purposes.

 

Deepak Builders & Engineers India (DBEIL) is a leading integrated engineering and construction company. DBEIL specialises in constructing administrative, institutional, healthcare, industrial, and residential projects, as well as historical memorials, stadiums, and sports complexes. The company offers end-to-end execution and construction services for diverse developmental and infrastructure projects.