Deepak Builders & Engineers India Limited IPO

Deepak Builders and Engineers IPO Key Points

Objectives of the IPO:

1. Repayment/prepayment, in full or part, of certain borrowings availed by our Company;
2. Funding of working capital requirements of our company; and
3. General corporate purposes.

Subscription details:

Qualified Institutional Buyer: 50%

Non-Institutional Buyer: 15%

Retail: 35%

Potential benefit for investors:

The company has a strong order book driven by government as well as non-government projects. By investing in Deepak builders and engineers IPO, the investor gets to be a part of a company that has an established and diverse clientele.

The company’s financials have shown a steady increase over the last few years. EBITDA has increased at 122.2% per year and PAT has grown at a rate of 182% Y-o-Y. By investing in Deepak builders and engineers IPO, one can be part of a company that is growing rapidly and one whose finances are in order.

The company is part of an industry that will be a driving force for the economy in the coming decades. Hence, by investing in Deepak builders and engineers, one can be a part of a company that will be a key force in shaping the infrastructure and economy of the country.

Deepak Builders and Engineers IPO Risk Factors

• Their revenue is dependent on projects undertaken or awarded by government, semi-government, and government-controlled entities. Any adverse changes in the government policies may lead to their contracts being foreclosed, terminated, restructured, or renegotiated which may hurt the business.

• Their project portfolio has historically been concentrated in Punjab, India and any changes affecting the policies, laws and regulations or the political and economic environment in the region may hurt their business.

• In the past, their Promoter, Deepak Kumar Singal has been penalised for contravention of the Foreign Exchange Management Act, 1999.

Key Strategies of Deepak Builders and Engineers

• Establish their position in Northern India and expand footprint in other geographies

• Enhance their project execution capabilities

• Leverage core competencies with enhanced in-house integration

Conclusion

Deepak Builders and Engineers comes with a strong order book, established clientele and a track record of handling diverse projects and solid financials. However, chances of disruptions in the global supply chains, and changes in government regulations domestically as well as internationally pose challenges to the company. If you want to invest in the IPO, ensure you do your homework and assess the risks and challenges thoroughly.