Dee Development Engineers IPO: Rs 418 cr Issue Opens Jun 19

New Delhi, Jun 12 (PTI) Piping solutions provider Dee Development Engineers Ltd on Wednesday said it is looking to raise Rs 418 crore through its initial share sale, which will open for public subscription on June 19.

The issue, with a price band of Rs 193-203 apiece, will conclude on June 21. The bidding for anchor investors will open for a day on June 18.

The initial share sale comprises fresh issuance of equity shares worth Rs 325 crore and an offer for sale of 45.82 lakh equity shares valued at Rs 93 crore by promoter and CMD Krishan Lalit Bansal at the upper end of the price band. This takes the IPO size to Rs 418 crore.

Currently, Bansal owns a 74.74 per cent stake in the company.

Of Rs 325 crore proceeds, Rs 175 crore will be used for payment of debt, Rs 75 crore for funding the working capital requirements, and the remaining 75 crore will be used for general corporate purposes, the company's CFO Sameer Agarwal told PTI in an interaction.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Further, investors can bid for a minimum of 73 equity shares and in multiples thereof.

Dee Developments is an engineering company, providing specialised process piping solutions for industries like oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing.

At present, the company has seven manufacturing facilities, with three at Palwal in Haryana, one each at Anjar in Gujarat, Barmer in Rajasthan, Numaligarh in Assam and Bangkok in Thailand, Bansal said.

The company's customers include JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill SA, Reliance Industries, HPCL–Mittal Energy Ltd and Toshiba JSW Power Systems, he added.

SBI Capital Markets and Equirus Capital are the merchant bankers to manage the company's maiden public issue. Equity shares of the engineering company will be listed on the BSE and NSE.