IPO Details
Bidding Dates
19 Jun 24 - 21 Jun 24
Price Range ₹
193 - 203
Total Equity
₹ 418.12Cr
Lot Size
73
Exchange Status
BSE,NSE
IPO Doc
Subscription Rate
Non-Institutional Investor
23.42×
Qualified Institutional Buyers
201.91×
Employees
44.73×
Retail Investors
23.42×
Total subscription Rate
99.56×
IPO Timeline
Offer start
19 Jun 2024
Offer end
21 Jun 2024
Allotment
24 Jun 2024
Refund initiation
25 Jun 2024
Demat transfer
25 Jun 2024
Listing
26 Jun 2024
Offer start
19 Jun 2024
Offer end
21 Jun 2024
Allotment
24 Jun 2024
Refund initiation
25 Jun 2024
Demat transfer
25 Jun 2024
Listing
26 Jun 2024
About Company
Established in 1988, DEE Development Engineers Limited is an engineering firm specializing in providing custom process piping solutions to industries such as oil and gas, power (including nuclear), and chemicals. The company operates through comprehensive services including engineering, procurement, and manufacturing. DEE Development Engineers also manufactures and supplies a range of piping products, including high-pressure piping systems, piping spools, induction pipe bends, submerged arc welding pipes, industrial fittings, pressure vessels, stacks, modular skids, and various accessories like superheater coils and de-superheaters. The company operates seven manufacturing facilities located in Palwal (Haryana), Anjar (Gujarat), Barmer (Rajasthan), Numaligarh (Assam), and Bangkok (Thailand), with three facilities based in Palwal, Haryana. As of the nine months ended December 31, 2023, these facilities collectively had an installed capacity of 70,875 MT, with annual capacities for Fiscal 2023, Fiscal 2022, and Fiscal 2021 recorded at 94,500 MT, 91,500 MT, and 86,500 MT respectively. DEE Development Engineers recently diversified into a new business segment by introducing design, engineering, fabrication, and manufacturing of pilot plants at its Palwal Facility III. As of March 31, 2024, the company employs 1,061 individuals, including 54 highly skilled welders certified in CSWIP 3.0 and 3.1, AWS-CWI, and CWV. Additionally, 53 employees possess advanced qualifications in non-destructive examination, meeting NDE level II and NDE level III standards as per ASNT/SNT-TC-1A and BS EN ISO 9712.
Year Founded
21-03-1988
Promotor Details
Krishan Lalit Bansal
Promoter Holdings Details
| Particular | Pre-IPO | Post-IPO |
|---|---|---|
| Percentage | 100 | 70.17 |
| Share Capital | 53039040 | 48457040 |
Offer to Public
2,05,96,938.00 Cr
Project Details
- General corporate purposes - 471.29cr
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company - 1750cr
- Funding working capital requirements of our Company - 750cr
Objectives
- Funding working capital requirements of our Company
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiaries, DEE Piping Systems (Thailand) Co. Limited and DEE Fabricom India Private Limited
- andGeneral corporate purposes.
Highlights
- DEE Development Engineers Ltd (DEE Piping Systems) has been operational since 1988, benefiting from its long-standing presence in the engineering and piping solutions industry, which has significant entry barriers.
- The company generates revenue from a diversified client base across sectors such as oil and gas, power (including nuclear), and chemicals. This diversification helps mitigate risks associated with dependence on any single industry.
- As of December 31, 2023, DEE Piping Systems had an order book of Rs 828.70 crore, equivalent to 139.16% of its revenue from operations in FY 2023. This backlog provides revenue visibility and stability.
- The company holds multiple ISO certifications and is approved under the Pressure Equipment Directive norms and ASME Code, ensuring compliance with international standards in designing, manufacturing, inspecting, and testing piping systems and components.
- DEE Piping Systems operates a National Accreditation Board for Testing and Calibration Laboratories-accredited facility, conducting comprehensive tests to meet ASME and European standards, enhancing product reliability and customer confidence.
Challenges
- A significant portion of DEE Piping Systems' revenue is derived from a few key customers. As of March 2023, the top 10 customers accounted for 91.79% of total revenue. Any loss or disruption in business from these customers could adversely impact financial performance.
- The company's revenue is highly dependent on sectors like oil and gas, power, and chemicals. Economic downturns or industry-specific challenges in these sectors could negatively affect revenue, cash flows, and overall financial stability.
- The Barmer Satellite Facility, dedicated to the HPCL Rajasthan Refinery project, may face closure upon project completion. This could lead to underutilization of facilities and impact business operations.
- As of April 15, 2024, DEE Piping Systems had total borrowings of Rs 386.19 crore, including both current and non-current liabilities. High debt levels pose risks related to interest payments and financial leverage.
- Subsidiaries like DEE Piping Systems (Thailand) Co., Limited, and DEE Fabricom India Private Limited reported losses in recent financial years. Continued losses from subsidiaries could strain the overall financial performance and cash flows of the company.
Financials
| Years | Total Assets | Share Capital | Profit After Tax | Consolidated Net Profit | Adjusted EPS |
|---|---|---|---|---|---|
| 2020 | 91,312.91 | 1,569.27 | 1,956.23 | 1,942.16 | 3.5311 |
| 2021 | 83,380.57 | 1,569.27 | 1,957.61 | 2,099.28 | 2.6755 |
| 2022 | 8,429.17 | 106.08 | 81.97 | 81.97 | 1.5454 |
| 2023 | 96,306.16 | 1,060.78 | 1,821.77 | 1,821.77 | 2.3218 |
| 2024 | 1,20,753.65 | 5,303.91 | 2,620.65 | 2,620.65 | 4.941 |
