Desco Infratech
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 Mar 2025 – 26 Mar 2025
- Listing date
- 01 Apr 2025
- Face value
- ₹1 per share
- Issue price
- ₹150 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹30.75 Cr
- Market cap at offer price
- ₹115 Cr
- Promoter holding
- 79.29% → 58.12% pre-issue → post-issue
- ISIN
- INE0TGG01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Smart Horizon Capital Advisors Pvt.Ltd.
- Registered office
- A-703, Swastik Universal, Next to Valentine Theatre, Dumas Road, Umra, Gujarat
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 | 5,77,000 | — | — |
| Market maker | 1,07,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹150
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,50,000 |
| S-HNI (min) | 2 | 2,000 | ₹3,00,000 |
| S-HNI (max) | 6 | 6,000 | ₹9,00,000 |
| B-HNI (min) | 7 | 7,000 | ₹10,50,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.15 | 8.81 |
| P/E (×) | 24.39 | 17.03 |
| Price to book (×) | 6.22 | — |
| Market cap | — | ₹115 Cr |
Key performance indicators
- Return on net worth
- 28.83%
- ROCE
- 75.97%
- Debt / equity
- 0.34
- PAT margin
- 11.76%
- NAV per share
- ₹24.10
- Price to book
- 6.22
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Desco Infratech
Desco Infratech Limited (formerly Desco Infratech Private Limited) was incorporated on January 19, 2011, and converted to a public limited company in 2024. The company specializes in providing infrastructure and maintenance services to city gas distribution divisions across India. Its core business involves pipeline laying, installation, testing, erection, and commissioning for Piped Natural Gas (PNG) serving both domestic and commercial users, along with operation and maintenance services. Recently, the company has expanded into power distribution (erection and commissioning of LT and HT cables), water distribution (designing and constructing water distribution networks, overhead tanks, wells), and renewable energy sectors (installation of RCC piles and solar modules). As of September 7, 2024, the company executes 56 ongoing projects with an order book of ₹16,569.13 Lakhs.
Company Analysis
from DRHPDesco Infratech Limited provides infrastructure and maintenance services for city gas distribution networks, power distribution, water distribution, and renewable energy projects in India.
Desco Infratech Limited (formerly Desco Infratech Private Limited) was incorporated on January 19, 2011, and converted to a public limited company in 2024. The company specializes in providing infrastructure and maintenance services to city gas distribution divisions across India. Its core business involves pipeline laying, installation, testing, erection, and commissioning for Piped Natural Gas (PNG) serving both domestic and commercial users, along with operation and maintenance services. Recently, the company has expanded into power distribution (erection and commissioning of LT and HT cables), water distribution (designing and constructing water distribution networks, overhead tanks, wells), and renewable energy sectors (installation of RCC piles and solar modules). As of September 7, 2024, the company executes 56 ongoing projects with an order book of ₹16,569.13 Lakhs.
Objects of the Issue
- Funding of capital expenditure requirements of our Company ₹282.33 Lakhs p.110
- Funding Working Capital Requirements of our Company ₹1,800.00 Lakhs p.110
- General corporate purposes [●] (shall not exceed 25% of the gross proceeds of the Issue) p.110
Issue Structure
- Total Issue
- Up to 20,50,000 Equity Shares of face value of ₹10/- each aggregating ₹[●] Lakhs
- Fresh Issue
- Up to 20,50,000 Equity Shares of face value of ₹10/- each fully paid-up for cash at price of ₹[●] per Equity Share aggregating ₹[●] Lakhs
- Offer for Sale
- N.A. - The entire Issue constitutes fresh issue of equity shares
- Price Band
- [●] (Floor Price) to ₹[●] (Cap Price) per Equity Share
- Lot Size
- [●] Equity Shares (minimum bid lot to be decided)
- Face Value
- ₹10/- per Equity Share
Business Model
Desco earns revenue through project execution contracts with city gas distribution divisions, power distribution authorities, water distribution projects, and renewable energy sector clients. The company participates in competitive bidding processes to secure projects, generates revenue upon project milestones, and provides operation and maintenance services. Revenue is generated from pipeline laying, installation services, commissionings, and maintenance contracts.
Business Segments
SWOT Analysis
- • Infrastructure and maintenance services expertise in city gas distribution sector(p.30)
- • Diversification into power distribution and renewable energy projects(p.30)
- • Strong order book of ₹16,569.13 Lakhs as of September 2024(p.63)
- • Improved profitability with PAT increasing from ₹82.51 Lakhs (FY22) to ₹345.80 Lakhs (FY24)(p.70)
- • Strong Return on Equity of 28.86% in FY24(p.123)
- • Improved EBITDA margin of 18.91% in FY24(p.123)
- • Geographic concentration provides deep local presence in major markets(p.45)
- • High dependence on few key customers - top customer represents 33.35% of revenue(p.43)
- • Negative operating cash flows in past years with ₹(27.64) lakhs used in FY24(p.44)
- • Geographic concentration risk with 54.10% of revenue from Gujarat alone(p.46)
- • Company is yet to place orders for 100% of machinery purchases valued at ₹168.04 Lakhs(p.50)
- • Outstanding unsecured loans totaling ₹119.49 Lakhs repayable on demand(p.52)
- • Missing educational certificates for one Promoter and one Independent Director(p.52)
- • Non-stamped rental agreement for office containers creating title issues(p.61)
- • Certain instances of non-compliance with statutory provisions including late filing of forms(p.50)
- • Growing infrastructure sector supporting gas distribution expansion(p.30)
- • Government target of 15% gas in energy mix by 2030 requiring ₹67 billion investment(p.144)
- • Expansion into renewable energy and water distribution projects(p.30)
- • India's renewable energy capacity target of 500 GW by 2030 creating infrastructure demand(p.144)
- • Listing on SME Platform providing enhanced visibility and access to capital markets(p.104)
- • Government's capital expenditure increase of 37% supporting infrastructure projects(p.144)
- • Growing demand for skilled infrastructure services due to limited competition(p.54)
- • Competition from larger regional and national oil and gas infrastructure companies(p.54)
- • Regulatory compliance risks including GST disputes totaling ₹48.68 Lakhs(p.34)
- • Labour litigation risks from contract workers seeking permanent employment(p.52)
- • Debarment from Gujarat Gas Limited projects for one year effective April 2023(p.55)
- • Cyclical industry and seasonal nature of operations affecting revenue predictability(p.43)
- • Potential increases in labour costs due to minimum wage amendments(p.63)
- • Risk of time overruns in project completion leading to penalties and guarantee invocation(p.58)
- • Vulnerability to commodity price volatility affecting project economics(p.59)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ms. Indiraben Pruthubhai Desai | Promoter | 42.35% | — |
| Mr. Pankaj Pruthu Desai | Promoter | 0.00% | — |
| Ms. Hina Pankaj Desai | Promoter | 16.00% | — |
| Mr. Malhar P Desai | Promoter | 10.82% | — |
| Mr. Samarth Pankaj Desai | Promoter | 10.82% | — |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.