Deepak Builders & Engineers India
Book Building issueMainboardNSE₹260 Cr issue
-2.22%
Listing gain over issue price
Issue size
₹260 Cr
1 lot at cut-off
₹14,819
Lot size
73shares
Open
21 Oct 2024
Close
23 Oct 2024
Allotment
24 Oct 2024
Listing
28 Oct 2024
Listing performance
Issue price
₹203
Listed at
₹198.50
Listing-day close
₹161.95
Latest price
—
Listing gain
-2.22%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Oct 2024 – 23 Oct 2024
- Listing date
- 28 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹203 per share
- Lot size
- 73 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹260 Cr
- Market cap at offer price
- ₹946 Cr
- Promoter holding
- 100.00% → 72.50% pre-issue → post-issue
- ISIN
- INE0OPA01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- Ahluwalia Chambers, 1st Floor, Plot No.16 &17, Local Shopping Centre, Madangir, near Pushpa Bhawan, New Delhi
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 | 38,42,939 | — | — |
| 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
38,42,939
Anchor portion
₹78.01 Cr
at ₹203 per share
Valuation and performance
Valuation at offer price
₹203 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 16.84 | 12.20 |
| P/E (×) | 12.05 | 16.64 |
| Price to book (×) | 4.68 | — |
| Market cap | — | ₹946 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 9.57%
- ROCE
- 8.97%
- Debt / equity
- 0.91
- PAT margin
- 13.52%
- NAV per share
- ₹43.42
- Price to book
- 4.68
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Deepak Builders & Engineers India
Deepak Builders & Engineers India Limited is an integrated engineering and construction company incorporated on September 11, 2017. It acquired the running business of M/s. Deepak Builders, a partnership firm, in March 2018, and was converted to a public limited company in October 2022. The company specializes in execution and construction of administrative & institutional buildings, hospitals and medical colleges, industrial buildings, historical memorial complexes, stadiums and sports complexes, residential complexes, and infrastructure projects including flyovers, approach roads, rail under bridges, rail over bridges, and railway station development. It undertakes Construction & Infrastructure Projects on both EPC services on a fixed-sum turnkey basis and on an item-rate/percentage basis. The company also derives revenue from sale of residue construction products. As of June 30, 2024, the company had an order book of ₹13,803.89 million across twelve ongoing projects.
Company Analysis
from RHPDeepak Builders & Engineers India Limited is an integrated engineering and construction company specializing in construction and infrastructure projects including administrative & institutional buildings, hospitals, medical colleges, industrial buildings, railway stations, and specialized structural work such as roads and flyovers across India.
Deepak Builders & Engineers India Limited is an integrated engineering and construction company incorporated on September 11, 2017. It acquired the running business of M/s. Deepak Builders, a partnership firm, in March 2018, and was converted to a public limited company in October 2022. The company specializes in execution and construction of administrative & institutional buildings, hospitals and medical colleges, industrial buildings, historical memorial complexes, stadiums and sports complexes, residential complexes, and infrastructure projects including flyovers, approach roads, rail under bridges, rail over bridges, and railway station development. It undertakes Construction & Infrastructure Projects on both EPC services on a fixed-sum turnkey basis and on an item-rate/percentage basis. The company also derives revenue from sale of residue construction products. As of June 30, 2024, the company had an order book of ₹13,803.89 million across twelve ongoing projects.
ConstructionInfrastructureEngineering & ConstructionRailway InfrastructureRoad Infrastructure
Objects of the Issue
- Repayment/prepayment, in full or part, of certain borrowings availed of by our Company ₹300.00 million p.31
- Funding of working capital requirements of the Company ₹1,119.56 million p.31
- General corporate purposes ₹497.61 million p.31
- Repayment of borrowings ₹300 million p.76
- Working capital requirements p.61
- General corporate purposes p.83
- Repayment/prepayment, in full or part, of certain borrowings availed by our Company ₹300.00 million p.114
- Funding of working capital requirements of our Company ₹1,119.56 million p.114
- General corporate purposes ₹497.61 million p.114
- Not stated in this part of the document
Issue Structure
- Total Issue
- 12,810,000 Equity Shares of face value of ₹10 each aggregating to ₹2,600.43 million
- Fresh Issue
- 10,700,000 Equity Shares of face value of ₹10 each aggregating to ₹2,172.10 million
- Offer for Sale
- 2,110,000 Equity Shares of face value of ₹10 each aggregating to ₹428.33 million (1,920,000 by Deepak Kumar Singal and 190,000 by Sunita Singal)
- Price Band
- Floor Price ₹192 per Equity Share; Cap Price ₹203 per Equity Share; Offer Price ₹203 per Equity Share
- Lot Size
- 73 Equity Shares having face value of ₹10 each and in multiples of 73 Equity Shares having face value of ₹10 each thereafter
- Face Value
- ₹10 each
Business Model
The company earns revenue from three primary sources: (1) EPC projects on a fixed-sum turnkey basis and item-rate/percentage basis comprising architectural & structural, civil, HVAC, and MEP work; (2) item-rate/percentage basis projects; and (3) sale of residue construction products. For the three months ended June 30, 2024, EPC projects contributed 44.87% of revenue from operations, item-rate/percentage basis projects contributed 29.79%, and sale of products contributed 25.34%. The company derives a significant portion of revenue from government, semi-government, and government-controlled entities.
Business Segments
Engineering, Procurement and Construction services on a fixed-sum turnkey basis comprising architectural & structural, civil, HVAC, MEP work
Construction projects undertaken on an item-rate or percentage basis for various clients
Sale of residue construction products
Undertaking construction and infrastructure projects for government authorities and government-controlled entities including roads, buildings, memorials, sports complexes, and administrative facilities
Comprises construction and development of institutional & administrative buildings, hospitals and medical colleges, industrial building, historical memorial complex, stadium and sports complex, residential complex.
Comprises structural work such as, flyovers, approach roads, road under bridge, bridges and railway over bridges and development and redevelopment of railway stations.
Construction and development of multi-storeyed government hospitals and medical colleges along with internal and external civil works, external development work, HVAC, MEP works, construction of modular operation theatres and medical gas pipeline systems
Construction and development of multi-storeyed administrative & institutional buildings such as Judicial court complexes and district administrative complexes including specific structures, civil works, HVAC, MEP works
Construction and development of historical memorial complexes and monuments including multi-storeyed civil structures, domes, minarets, statues, entrance foyers, auditoriums, seminar halls, theaters, food courts, offices, libraries, gallerias with internal and external civil works, HVAC, and MEP works
Construction and development of plant and non-plant buildings for industrial use including architectural, civil, structural, electrical, HVAC and IT systems related work
Construction and development of stadiums and sports complexes including civil work, public work, health and electrical work, HVAC, CCTVs, and electronic security systems
Construction of government residential buildings along with finishing, public health services, and electrical works
EPC basis designing, construction, realignment, widening, upgradation, diversion, improvements of approach roads, service roads, footpaths, rail over bridges, rail under bridges, underpasses and flyovers
EPC basis designing, construction, development and redevelopment of railway stations along with station buildings, arrival concourses, platform covers, railway rest houses, hospitals, quarters, multi-level car parking, foot over bridges, internal roads, and interior/exterior work
Sale of residual construction materials (primarily steel) and Ready-Mix Concrete after captive consumption in projects
Construction of hospital buildings and medical college facilities
Development, upgradation, and redevelopment of railway stations and related infrastructure
Construction of roads, flyovers, ROB (Road Over Bridge), and related road infrastructure
Construction of industrial buildings and manufacturing facilities
Construction of administrative buildings and institutional facilities
Turnkey construction work and specializes in construction of administrative & institutional buildings, hospital and medical college buildings, industrial building, historical memorial complex, stadium and sports complex, and residential complex. Also undertakes developmental and other construction activity including beautification, landscaping, environmental parks, and painting works.
Road Projects - designing, construction, realignment, widening, upgradation, improvement of approach roads, service roads, footpaths, rail over bridges, rail under bridges, underpasses and flyovers. Railway Projects - engineering, procurement, construction, development and redevelopment of railway stations including station building, arrival concourse, platforms, rest houses, hospitals, quarters, multi-level parking, foot over bridges, internal roads.
Sale of residual construction materials primarily steel and other materials (cement, iron and steel, etc.) after captive consumption. Materials are set up through RMC plants at different project locations as backward integration or procured and stocked for project requirements, with excess sold to third party contractors and traders.
Revenue generated from execution of EPC and item-rate/percentage rate basis projects for Construction & Infrastructure Projects
Revenue from sale of materials used in construction, such as iron and steel, in the open market to third party contractors, traders, etc. on commercially viable terms
SWOT Analysis
Strengths
- • Established government and semi-government clientele(p.40)
- • Strong credit rating and access to capital(p.48)
- • Class I Super Contractor accreditation with CPWD(p.50)
- • Significant order book and strong book-to-bill ratio(p.43)
- • Improved profitability and margins in recent periods(p.47)
- • Diversified project portfolio across sectors(p.30)
- • Registered trademarks protecting brand identity(p.51)
- • Significant order book providing revenue visibility(p.57)
- • Experienced promoter with extensive construction sector background(p.69)
- • Established track record in infrastructure project execution(p.69)
- • Class I (Super) Contractor registration with CPWD(p.80)
- • Established track record with 60+ projects completed by promoter(p.130)
- • Diversified order book with strong government client base(p.130)
- • Strong financial growth with PAT increasing 182.36% YoY in FY2024(p.131)
- • High EBITDA growth of 122.22% YoY in FY2024(p.131)
- • Promoter has 30+ years construction industry experience(p.131)
- • Strong revenue growth of 17.98% YoY in FY2024(p.131)
- • Book-to-Bill ratio of 14.91x as of June 30, 2024 indicating strong pipeline(p.135)
- • Established government client base with repeat contracts from major agencies(p.219)
- • Significant owned equipment fleet reducing outsourcing dependency(p.219)
- • Strong financial growth with consistent revenue expansion(p.219)
- • Experienced promoter with 30+ years in construction business(p.220)
- • Class I Super Contractor accreditation enabling larger project bids(p.213)
- • Track record in complex, specialized construction projects(p.215)
- • Integrated in-house construction model with complete project execution capabilities(p.230)
- • Substantial owned equipment fleet enabling rapid mobilization and reduced downtime(p.231)
- • Diversified order book across multiple project types and geographies(p.226)
- • Pre-qualified to bid independently for projects up to ₹6,500 million contract value(p.228)
- • Experienced project management team with specialized engineering and design capabilities(p.230)
- • Quality management accreditation and compliance framework(p.231)
- • Established track record with 30+ years of industry experience through promoter(p.324)
- • Strong order book and booking to bill ratio indicating growth momentum(p.324)
- • Class I (Super) Contractor accreditation enabling large project bidding(p.324)
- • Marquee client base with government and semi-government entities(p.326)
- • Demonstrated profitability with improving EBITDA margins(p.328)
- • In-house integrated model reducing dependence on third-party suppliers(p.327)
Weaknesses
- • High revenue concentration from few large government clients(p.40)
- • Concentration of project portfolio in few large contracts(p.42)
- • Geographic concentration in Punjab and nearby regions(p.45)
- • Related party receivables representing significant portion of assets(p.48)
- • Promoter subject to past FEMA penalty(p.46)
- • Past negative operating cash flows(p.55)
- • Delays and cost escalation in project execution(p.53)
- • Pending litigation involving promoters and company(p.33)
- • Outstanding income tax disputes and search operations(p.46)
- • Significant customer concentration risk(p.56)
- • Compliance delays in statutory appointments(p.56)
- • Historical regulatory penalties and compliance issues(p.56)
- • Promoter litigation including criminal proceedings and FEMA violations(p.59)
- • High working capital intensity with increasing requirements(p.60)
- • Significant outstanding tax and GST disputes(p.62)
- • Material litigation involving major projects with disputed payments(p.58)
- • Significant proportion of receivables overdue by more than six months(p.71)
- • Excessive reliance on promoter and lack of succession planning(p.70)
- • Pledged promoter shareholding as collateral for loans(p.77)
- • High leverage with Debt Equity Ratio of 1.00 in FY2024(p.135)
- • Significant portion of shareholding pledged as security(p.112)
- • Working capital intensive business with high working capital days (220 days as of June 30, 2024)(p.135)
- • Concentrated promoter ownership with 99.97% held by two promoters pre-offer(p.111)
- • High inventory holding period of 208 days as of June 30, 2024(p.135)
- • Heavy reliance on government projects creating policy vulnerability(p.209)
- • Geographic concentration in Northern India limiting revenue diversification(p.216)
- • High dependence on single promoter for strategic direction(p.220)
- • Vulnerability to material price and supply chain disruptions(p.209)
- • Regulatory compliance burden from complex building codes and environmental standards(p.209)
- • Significant concentration of revenue from top five clients(p.233)
- • Portfolio concentration in large-scale projects creating execution risk(p.246)
- • Heavy dependence on promoter guarantees for bank financing(p.248)
- • Multiple ready-mix concrete plants currently non-operational(p.246)
- • Insurance coverage may not adequately protect against all material hazards(p.233)
- • Significant leverage and reliance on borrowings for growth(p.330)
- • High working capital requirements and dependence on cost-effective funding(p.330)
- • Concentration of revenue in northern India limiting geographic diversification(p.326)
- • High inventory holding relative to revenue turnover(p.317)
- • Outstanding tax demands and GST disputes creating contingent liabilities(p.307)
Opportunities
- • Infrastructure development focus by Indian government(p.30)
- • High budgetary allocations for infrastructure(p.30)
- • Expansion into new geographic regions(p.45)
- • Railway sector expansion opportunity(p.47)
- • Economic growth driving construction sector demand(p.30)
- • Expansion of infrastructure and construction projects in India(p.57)
- • Utilization of IPO proceeds for working capital and debt reduction(p.61)
- • Improved financial capacity and creditworthiness through public listing(p.46)
- • India's construction industry projected to reach USD 1.4 trillion by 2025(p.160)
- • Major railway station modernization through Amrit Bharat Station Scheme(p.164)
- • Expansion of railway network with 780 new lines planned by 2031(p.168)
- • High budgetary allocation for railways with 71% annual growth in FY2024(p.168)
- • Government infrastructure investment through Gati Shakti National Master Plan(p.160)
- • Bharatmala Pariyojana highway development adding 22,000 km by 2025(p.161)
- • India's strong GDP growth trajectory of 6.8% projected for FY2024(p.158)
- • Massive government infrastructure spending supporting demand growth(p.173)
- • Healthcare infrastructure expansion driven by medical college development programs(p.189)
- • Northern India expansion driven by UP one-trillion-dollar economy initiative(p.206)
- • Growing demand for educational infrastructure across states(p.197)
- • Railway station modernization creating substantial EPC opportunities(p.215)
- • Industrial construction demand from China Plus One strategy beneficiaries(p.182)
- • Expansion into new geographies and higher-value project segments(p.228)
- • Growing infrastructure development demand evidenced by large railway station projects(p.244)
- • Industrial building construction segment entry with major IOCL contract(p.244)
- • Healthcare infrastructure expansion with multiple medical college and hospital projects(p.244)
- • Significant Indian government capex on infrastructure and construction projects(p.324)
- • Expansion into new verticals including industrial buildings and railway projects(p.325)
- • Growing order book from railway and infrastructure modernization projects(p.324)
- • Capacity to execute higher value and complex projects with new pre-qualification(p.324)
- • Diversification into hospital and medical college projects with government backing(p.325)
Threats
- • Dependency on government policy changes affecting project awards(p.41)
- • Risk of project termination by government clients(p.41)
- • Intense competition from large domestic construction companies(p.50)
- • Government tender delays and uncertainties(p.50)
- • Material and skilled labor cost inflation risks(p.53)
- • Seasonal variations affecting project execution(p.55)
- • Force majeure events and natural calamities(p.53)
- • Regulatory changes and compliance requirements(p.28)
- • Delayed payments from government entities(p.51)
- • Litigation risk from unsuccessful bidders(p.51)
- • Highly competitive construction industry with low entry barriers(p.66)
- • Project delays, modifications, and cancellations affecting order book realization(p.57)
- • Dependence on government and semi-government entities as primary customers(p.58)
- • Volatility in raw material prices affecting project profitability(p.68)
- • Dependence on third-party suppliers and sub-contractors(p.67)
- • Regulatory and compliance uncertainties affecting operations(p.68)
- • Interest rate fluctuations impacting borrowing costs(p.77)
- • Economic slowdown and reduced government spending on infrastructure(p.85)
- • Natural calamities and unforeseen external events affecting operations(p.87)
- • Dependence on government and government-controlled entity clients(p.130)
- • Exposure to construction material price volatility(p.123)
- • Monsoon and weather-related risks affecting project execution(p.157)
- • Global economic slowdown risks affecting demand(p.148)
- • Competition from larger construction companies(p.134)
- • Geopolitical uncertainties affecting global supply chains and commodity prices(p.151)
- • Regulatory changes in infrastructure and construction sectors(p.115)
- • Economic downturn reducing government infrastructure spending capacity(p.209)
- • Intense competition from larger domestic and foreign construction firms(p.209)
- • Geopolitical risks and natural disasters disrupting project execution(p.209)
- • Adverse regulatory changes and policy shifts impacting profitability(p.209)
- • Rising labor costs and skill shortages constraining margins(p.207)
- • Highly competitive construction industry with low entry barriers(p.234)
- • Price often the decisive factor in tender awards over quality and experience(p.234)
- • Significant dependence on government clients creating payment delay risks(p.246)
- • Input cost volatility and material procurement risks(p.229)
- • Regulatory and compliance risks across multiple state jurisdictions(p.237)
- • Intense competition from larger and better-resourced construction companies(p.330)
- • Fluctuations in raw material prices and supply chain disruptions(p.330)
- • Adverse weather conditions and seasonality impacting project execution(p.330)
- • Project execution delays causing payment delays and cash flow constraints(p.329)
- • High customer concentration risk with government entities susceptible to funding constraints(p.315)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Deepak Kumar Singal | Promoter/Promoter Selling Shareholder | 90.04% | 65.23% |
| Sunita Singal | Promoter/Promoter Selling Shareholder | 9.93% | 7.25% |
| Deepak Kumar Singal | Promoter/Chairman cum Managing Director | 89.00 | — |
| Sunita Singal | Promoter/Whole-time Director | 11.00 | — |
| Deepak Kumar Singal | Promoter | 90.04% | 65.23% |
| Sunita Singal | Promoter | 9.93% | 7.25% |
| Deepak Kumar Singal | Promoter | — | — |
| Deepak Kumar Singal | Promoter | 90.04% | — |
| Sunita Singal | Promoter | 9.93% | — |
| Deepak Kumar Singal | Promoter | 90.04% | — |
| Sunita Singal | Promoter | 9.94% | — |
| Deepak Kumar Singal | Promoter | — | — |
| Sunita Singal | Promoter | — | — |
Leadership
Deepak Kumar Singal · Chairman cum Managing Director
Sunita Singal · Whole-time Director
Rishabh Gupta · Chief Financial Officer
Anil Kumar · Company Secretary and Compliance 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.
Deepak Builders & Engineers India IPO FAQs
What is the lot size of Deepak Builders & Engineers India IPO?
The minimum lot size of Deepak Builders & Engineers India IPO is 73 shares. One lot costs ₹14,819 at the cut-off price.
When does Deepak Builders & Engineers India IPO open and close?
Deepak Builders & Engineers India IPO opened for subscription on 21 Oct 2024 and closed on 23 Oct 2024.
What is the listing date of Deepak Builders & Engineers India IPO?
Deepak Builders & Engineers India IPO listed on 28 Oct 2024.