DEE Development Engineers
Book Building issueMainboard₹418 Cr issue
+60.10%
Listing gain over issue price
Issue size
₹418 Cr
1 lot at cut-off
₹14,819
Lot size
73shares
Open
19 Jun 2024
Close
21 Jun 2024
Allotment
24 Jun 2024
Listing
26 Jun 2024
Listing performance
Issue price
₹203
Listed at
₹325
Listing-day close
₹335.32
Latest price
₹534.95
Close on 23 Oct 2026
Listing gain
+60.10%
Return since issue
+163.52%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Jun 2024 – 21 Jun 2024
- Listing date
- 26 Jun 2024
- Face value
- ₹10 per share
- Issue price
- ₹203 per share
- Lot size
- 73 shares
- Issue type
- Book Building issue
- Total issue size
- ₹418 Cr
- Market cap at offer price
- ₹1,402 Cr
- Promoter holding
- 100.00% → 70.17% pre-issue → post-issue
- ISIN
- INE841L01016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- SBI Capital Markets Ltd.
- Registered office
- Unit 1, Prithla-Tatarpur Road, Village Tatarpur, DistPalwal, Haryana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 61,62,777 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 73 shares per lot, in multiples, at ₹203
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 73 | ₹14,819 |
| Retail (max) | 13 | 949 | ₹1,92,647 |
| S-HNI (min) | 14 | 1,022 | ₹2,07,466 |
| S-HNI (max) | 67 | 4,891 | ₹9,92,873 |
| B-HNI (min) | 68 | 4,964 | ₹10,07,692 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
61,62,777
Anchor portion
₹125 Cr
at ₹203 per share
Valuation and performance
Valuation at offer price
₹203 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.45 | 2.77 |
| P/E (×) | 82.86 | 73.29 |
| Price to book (×) | 2.46 | — |
| Market cap | — | ₹1,402 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 3.35%
- ROCE
- 3.91%
- Debt / equity
- 0.85
- PAT margin
- 2.63%
- NAV per share
- ₹82.59
- Price to book
- 2.46
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About DEE Development Engineers
DEE Development Engineers Limited, incorporated in 1988 and originally known as 'DE Development Engineers Private Limited', operates as an engineering company providing specialized process piping solutions across critical industries including oil and gas, power (including nuclear), chemicals, and process industries. The company serves through engineering, procurement, and manufacturing capabilities. It manufactures and supplies high-pressure piping systems, piping spools, high frequency induction pipe bends, Longitudinally Submerged Arc Welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids, and accessories including boiler superheater coils, de-super heaters, and other customized manufactured components. The company has manufacturing experience of over three and a half decades and operates seven manufacturing facilities strategically located at Palwal in Haryana, Anjar in Gujarat, Barmer in Rajasthan, Numaligarh in Assam, and Bangkok in Thailand. The company also manufactures and supplies piping products and generates power through biomass power plants with aggregate capacities.
Company Analysis
from RHPDEE Development Engineers Limited is an engineering company providing specialized process piping solutions for oil and gas, power, chemicals, and process industries through engineering, procurement, and manufacturing.
DEE Development Engineers Limited, incorporated in 1988 and originally known as 'DE Development Engineers Private Limited', operates as an engineering company providing specialized process piping solutions across critical industries including oil and gas, power (including nuclear), chemicals, and process industries. The company serves through engineering, procurement, and manufacturing capabilities. It manufactures and supplies high-pressure piping systems, piping spools, high frequency induction pipe bends, Longitudinally Submerged Arc Welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids, and accessories including boiler superheater coils, de-super heaters, and other customized manufactured components. The company has manufacturing experience of over three and a half decades and operates seven manufacturing facilities strategically located at Palwal in Haryana, Anjar in Gujarat, Barmer in Rajasthan, Numaligarh in Assam, and Bangkok in Thailand. The company also manufactures and supplies piping products and generates power through biomass power plants with aggregate capacities.
Oil and GasPower (including nuclear)Process IndustriesChemicalsBiomass Power Generation
Objects of the Issue
- Funding the working capital requirements of our Company ₹ 750.00 million p.22
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company ₹ 1,750.00 million p.22
- General corporate purposes p.22
- To be determined and disclosed in Objects of the Offer section beginning page 125 p.45
- Funding working capital requirements of our Company ₹750.00 million p.131
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company ₹1,750.00 million p.131
- General corporate purposes p.137
- Repayment or prepayment of all or a portion of certain borrowings ₹ 1,750.00 million p.221
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹ 3,250.00 million
- Offer for Sale
- Up to 45,82,000 Equity Shares aggregating up to ₹ [●] million
- Price Band
- ₹[●] per Equity Share (Floor Price) to ₹[●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 each
Business Model
The company earns revenue through engineering, procurement, and manufacturing of specialized process piping solutions. It provides engineered products and services to oil and gas, power, chemicals, and process industries. Revenue is also generated through biomass power generation from its Abohar Biomass Power Plant with a capacity of 8 MW located in Punjab and its Muktsar Biomass Power Plant with a capacity of 6 MW located in Punjab.
Business Segments
Manufactures and supplies piping products including high-pressure piping systems, piping spools, high frequency induction pipe bends, Longitudinally Submerged Arc Welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids and accessories
Manufactures and supplies power through biomass power generation plants
Design, engineering, fabrication and manufacturing of specialized piping systems for oil and gas, power (including nuclear), process and chemical industries
Generation and supply of electricity from biomass to Punjab State Power Corporation Limited under long-term Power Purchase Agreements at facilities in Abohar and Muktsar, Punjab
Manufactures and fabricates process piping systems including pipes, fittings, flanges, and associated components for industrial applications
Provides heavy fabrication services including pressure vessels, boiler components, and complex industrial equipment
Provides specialized process piping solutions including engineering services (pre-bid engineering, basic engineering, detailed engineering, support engineering) and manufacturing of piping spools, high-pressure piping systems, high frequency induction pipe bends, Longitudinally Submerged Arc Welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids and customized manufactured components. Services include cutting, beveling, welding, radiography, heat treatment, hydro testing, pickling, passivation, grit blasting, and painting.
Operates two biomass power plants - one at Abohar, Punjab with 8 MW capacity and one at Muktsar, Punjab with 6 MW capacity, both generating electricity from combustion of biomass such as paddy straw, mustard straw and cotton stalks. Both plants operate under Power Purchase Agreements with Punjab State Power Corporation Limited.
Manufactures wind turbine towers and industrial stacks through wholly owned subsidiary DFIPL at the Anjar Heavy Fabrication Facility in Gujarat. Wind turbine towers are delivered with tubular steel towers in sections ranging from 12 to 33 meters with flanges at either end.
Manufacturing and supply of prefabricated piping systems, pipe fittings, and engineered metal structures for power (renewable and non-renewable), oil and gas, railways, roads, and infrastructure projects, including erection and job work services.
Generation, distribution and transmission of biomass-based power through subsidiary Malwa Power Private Limited.
Manufacturing, fabrication and supply of metal structures and components for various industrial applications through subsidiary DEE Fabricom India Private Limited.
Manufacturing of pre-fabricated engineering products, pipe fittings, piping systems
Biomass based power generation
Wind mill tower Manufacturing
Provides specialized process piping solutions including engineering services and prefabrication services such as welding, radiography, post-weld heat treatment, hydro testing, pickling, passivation, grit blasting and painting. Manufactures high-pressure piping systems, piping spools, high frequency induction pipe bends, Longitudinally Submerged Arc Welding pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids and accessories.
Operates two biomass power generation plants in Abohar and Muktsar, Punjab with a contracted annual capacity of 8 MW and 6 MW respectively. Focused on environment and sustainability, achieving reduction of more than 191,067 tons of CO₂ emissions by producing green power through use of biomass.
Manufactures wind turbine towers through wholly owned subsidiary DFIPL at the Anjar Heavy Fabrication Facility. Also involved in manufacturing of industrial stacks.
Design, engineering, fabrication and manufacturing of pilot plants for research and development. Provides one-stop solution ranging from conceptualization to commissioning including 3-D modelling, process simulation, control engineering, design, fabrication and construction.
SWOT Analysis
Strengths
- • Long-standing customer relationships with strong order book(p.43)
- • Strong focus on automation and process excellence with experienced engineering team(p.39)
- • Over three and a half decades of manufacturing experience(p.21)
- • Strategic facility locations with access to ports for overseas customers(p.39)
- • High capacity utilization at key facilities, particularly Palwal Facility III and Barmer Facility(p.45)
- • Strong order book position relative to annual revenue(p.47)
- • Diversified geographic presence with international operations(p.50)
- • Track record of executing orders with no historical cancellations(p.48)
- • Strong engineering and design capabilities with in-house expertise(p.69)
- • Long-term relationships with key customers in oil and gas and power sectors(p.46)
- • Modern automated manufacturing infrastructure(p.64)
- • Acquisition-driven growth strategy with strong market presence(p.88)
- • Largest process piping solutions player in India with state-of-the-art manufacturing facilities(p.140)
- • Long-standing customer relationships with strong order book(p.140)
- • Wide range of specialized product offerings serving diversified customers(p.140)
- • Strong focus on automation and operational excellence(p.140)
- • Strong margin performance compared to peers(p.202)
- • Proven track record in complex fabrication across diverse industries(p.204)
- • Established position in niche segment with high barriers to entry(p.201)
- • Leading player with significant industry entry barriers(p.212)
- • Largest installed capacity player in India's process piping sector(p.212)
- • Strategically located state-of-the-art manufacturing facilities with global reach(p.212)
- • Long-standing customer relationships with strong order book(p.213)
- • Wide diversified product portfolio across multiple industries(p.215)
- • Strong focus on automation and process excellence with experienced engineering team(p.217)
- • Experienced promoter and professional management team with extensive domain expertise(p.217)
- • Diverse manufacturing and engineering capabilities across multiple segments(p.309)
- • Established multi-location production footprint(p.309)
- • Long operational history and experience since incorporation(p.274)
- • Strong organizational infrastructure with multiple subsidiaries(p.269)
Weaknesses
- • Heavy dependence on small number of largest customers(p.43)
- • Majority of Net Proceeds to be used for debt repayment rather than growth(p.42)
- • High total borrowings relative to scale of operations(p.42)
- • Significant performance bank guarantees exposure for quality and delivery obligations(p.37)
- • History of workplace accidents including fatalities at manufacturing facilities(p.39)
- • Significant concentration of manufacturing facilities in Palwal, Haryana creates geographic risk(p.56)
- • Very low capacity utilization at Palwal Facility I(p.45)
- • Heavy dependence on third-party agents for customer acquisition(p.61)
- • Significant dependence on a few customers, especially in order book(p.48)
- • Barmer Facility is dedicated to a single customer with limited revenue contribution outside that customer(p.62)
- • Historically unresolved corporate record discrepancies and missing regulatory filings(p.56)
- • History of delays and defaults in statutory dues payments including EPF(p.57)
- • Negative cash flows from investing and financing activities(p.48)
- • Heavy reliance on debt financing with significant guarantees from promoters(p.64)
- • Significant ongoing litigation and regulatory scrutiny(p.63)
- • Downgraded credit rating indicating financial stress(p.79)
- • High debt burden and unfavorable debt-to-equity ratio(p.143)
- • Low return on capital employed and return on net worth(p.143)
- • Relatively low profit margins(p.143)
- • Dependence on borrowed funds for working capital(p.132)
- • Lower profitability margins relative to revenue scale(p.202)
- • Significantly smaller scale than major domestic competitors(p.202)
- • Low capacity utilization despite expanded capacity(p.212)
- • High concentration of revenue among top customers(p.240)
- • High level of debt with significant net debt to equity ratio(p.211)
- • Dependence on third-party transportation and logistics providers(p.238)
- • Significant raw material costs with limited long-term supplier contracts(p.237)
- • Significant financial leverage with high debt burden(p.305)
- • Negative performance of major subsidiary(p.272)
- • Accumulated losses in subsidiary operations(p.272)
- • High reliance on promoter guarantees for debt obligations(p.258)
- • Concentrated high-value customer base dependency(p.305)
Opportunities
- • Strong growth in Indian process piping market(p.21)
- • Global renewable energy expansion targets and biomass generation policies(p.42)
- • Growing global process piping market with significant CAGR(p.21)
- • New product development capabilities responding to customer needs(p.44)
- • Post-COVID global economic recovery creating increased business opportunities(p.40)
- • Revival of capital expenditure cycle in oil and gas, power, and process industries(p.69)
- • Automation and operational efficiency improvements across facilities(p.69)
- • Technology partnerships with global OEMs(p.69)
- • Expansion into new pilot plant manufacturing business segment(p.60)
- • International market expansion opportunities beyond current presence(p.50)
- • Leveraging strong market position and customer relationships for growth(p.46)
- • Deleveraging and improving financial flexibility(p.69)
- • Funding working capital requirements to support business expansion(p.131)
- • Debt reduction to improve financial ratios and profitability(p.134)
- • Listing benefits including enhanced visibility and brand image(p.130)
- • Strong revenue growth trajectory(p.143)
- • Massive capex pipeline in petroleum refining sector(p.193)
- • Strong growth trajectory in chemical and petrochemical production(p.195)
- • India's emergence as manufacturing hub under China Plus One strategy(p.165)
- • Rising demand from alternative energy sectors (green hydrogen, ethanol)(p.166)
- • Rapid growth in Indian process piping market(p.188)
- • Large projected growth in process piping market with rising capital expenditure in key sectors(p.218)
- • Rising demand for petroleum refining and petrochemical capacity in India(p.218)
- • Significant expansion in power generation capacity and renewable energy investment(p.218)
- • Government support for green hydrogen mission with significant capital investment(p.218)
- • Expansion into new business segments including pilot plants and modular skids(p.220)
- • Capacity expansion projects to capture market share and improve efficiency(p.235)
- • Strategic technology tie-ups with global OEMs to enhance capabilities and order flow(p.220)
- • Expansion into renewable and non-renewable power generation sectors(p.269)
- • Geographic expansion through foreign operations(p.271)
- • Infrastructure and industrial project participation(p.269)
- • Product line diversification through subsidiary businesses(p.269)
Threats
- • Heavy dependence on oil and gas and power sectors which are cyclical(p.41)
- • Volatility in crude oil prices affecting customer capital expenditure plans(p.42)
- • Risk of supply chain disruption due to port and facility proximity(p.39)
- • Exposure to manufacturing and operational risks from heavy machinery(p.39)
- • Regulatory bans and trade sanctions on customer industries(p.42)
- • Climate change and government bans on fossil fuel power projects(p.42)
- • Risks from shortage or unavailability of electricity and water(p.40)
- • Dependence on customer capex cycles vulnerable to oil and gas price volatility(p.46)
- • Intense competition from domestic and international pipe fabrication companies(p.47)
- • Significant raw material cost exposure with 72.85% of purchases being steel(p.51)
- • Seasonal availability constraints for biomass power plant raw materials(p.51)
- • Exposure to Power Purchase Agreement risks with government counterparty(p.53)
- • Regulatory and environmental compliance risks across multiple jurisdictions(p.62)
- • Risk of order delays and cost overruns affecting profitability(p.48)
- • Foreign exchange and repatriation risks from international operations(p.50)
- • Global economic slowdown and trade barriers affecting international sales(p.86)
- • Operational risks in biomass power generation including equipment failures(p.53)
- • Capital-intensive industry requiring significant ongoing investment(p.66)
- • Regulatory policy changes in renewable energy and power sector(p.64)
- • Natural disasters and external shocks affecting operations(p.85)
- • Risk of customer payment defaults and credit losses(p.67)
- • Regulatory scrutiny under Competition Act for acquisition-driven strategy(p.88)
- • Accounting standards differences affecting investor assessment(p.88)
- • Adverse impact from changes in India's sovereign credit rating(p.88)
- • Restricted ability to sell shares immediately post-listing(p.89)
- • No assurance of timely or continued listing on stock exchanges(p.89)
- • Potential surveillance measures and trading restrictions(p.89)
- • Indian tax liabilities on capital gains for investors(p.90)
- • Difficulty enforcing judgments against the company(p.92)
- • Global process piping market growth is modest(p.181)
- • Intense competition from larger, established global players(p.202)
- • Raw material price volatility impact on margins(p.179)
- • Declining thermal power demand due to energy transition(p.197)
- • Exposure to macroeconomic downturns affecting capex cycles(p.179)
- • Exposure to cyclical nature of capital expenditure in oil and gas and power sectors(p.218)
- • Competition from domestic and overseas companies with greater resources(p.245)
- • Dependence on predetermined suppliers selected by customers(p.237)
- • Exposure to raw material price volatility with short-term procurement contracts(p.235)
- • Regulatory and environmental compliance requirements across multiple jurisdictions(p.222)
- • Foreign exchange volatility affecting international operations(p.267)
- • Regulatory and compliance risks in energy sector(p.269)
- • Project execution and contract performance risks(p.269)
- • Economic cyclicality in capital-intensive infrastructure and power sectors(p.269)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Krishan Lalit Bansal | Promoter | 74.74% | — |
| Ashima Bansal | Promoter | 8.30% | — |
| DDE Piping Components Private Limited | Promoter Group | 14.20% | — |
| Krishan Lalit Bansal | Promoter | ~100.00% | — |
| DDE Piping Components Private Limited | Promoter Group | — | — |
| Krishan Lalit Bansal | Promoter | 74.74% | — |
| DDE Piping Components Private Limited | Promoter | 14.20% | — |
| Ashima Bansal | Promoter | 8.30% | — |
| Shikha Bansal | Promoter Group | 2.76% | — |
| Shruti Aggarwal | Promoter | — | — |
| DEE Group Trust | Promoter Group | — | — |
| DDE Piping Components Private Limited | Promoter Group | — | — |
| Krishan Lalit Bansal | Promoter/Promoter Group/Chairman and Managing Director | — | — |
| Krishan Lalit Bansal | Promoter | 74.74% | — |
| Ashima Bansal | Promoter | 8.30% | — |
| DDE Piping Components Private Limited | Corporate Promoter | 14.20% | — |
| Mr. Krishan Lalit Bansal | Promoter | 74.74% | — |
| DDE Piping Components Pvt. Ltd. | Promoter | 14.20% | — |
| Mrs. Ashima Bansal | Promoter | 8.30% | — |
| Mrs. Shikha Bansal | Promoter Group | 2.76% | — |
| Krishan Lalit Bansal | Promoter | — | — |
| Krishan Lalit Bansal | Selling Shareholder | — | — |
Leadership
Krishan Lalit Bansal · Chairman and Managing Director
Ranjan Kumar Sarangi · Company Secretary and Compliance Officer
Sameer Agarwal · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
DEE Development Engineers IPO FAQs
What is the lot size of DEE Development Engineers IPO?
The minimum lot size of DEE Development Engineers IPO is 73 shares. One lot costs ₹14,819 at the cut-off price.
When does DEE Development Engineers IPO open and close?
DEE Development Engineers IPO opened for subscription on 19 Jun 2024 and closed on 21 Jun 2024.
What is the listing date of DEE Development Engineers IPO?
DEE Development Engineers IPO listed on 26 Jun 2024.