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DEE Piping Systems IPO is a book-built issue of Rs 418.01 crores. The issue is a combination of a fresh issue of 1.6 crore shares aggregating to Rs 325.00 crores and an offer for sale of 0.46 crore shares aggregating to Rs 93.01 crores.
The IPO opens for subscription on June 19, 2024, and closes on June 21, 2024, and the price band for the IPO is set at ₹193 to ₹203 per share. Also, the minimum lot size for an application is 73 Shares.
Company Summary
This company is an engineering company providing specialized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing.
They also manufacture and supply piping products such as 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
They have seven strategically located Manufacturing Facilities at Palwal in Haryana, Anjar in Gujarat, and Barmer in Rajasthan. Numaligarh in Assam and Bangkok in Thailand, with three Manufacturing Facilities located at Palwal, Haryana. They also operate a temporary Manufacturing Facility in Barmer, Rajasthan which is a dedicated facility set up to cater to the piping and erection requirements of the HPCL Rajasthan Refinery Limited (the “Barmer Satellite Facility”).
In the nine months ended December 31, 2023, Fiscal 2023, Fiscal 2022, and Fiscal 2021, they supplied their products to domestic customers and their overseas customers in countries including the USA, Europe, Japan, Canada, the Middle East, Nigeria, Vietnam, Singapore, China and Taiwan.
In the nine months ended December 31, 2023, Fiscal 2023, Fiscal 2022, and Fiscal 2021 their revenue from operations outside India was ₹2,211.10 million, ₹ 2,685.92 million, ₹ 1,681.48 million and ₹ 2,259.62 million, respectively, which represented 40.53%, 45.10%, 36.48% and 45.63% of their revenue from operations for the respective period/years.
Company Strengths
Their leadership position can be attributed to factors such as their long-standing relationship with certain of their global customers, business experience, domain expertise, and consistent quality of their products.
They believe that such a leadership position offers them competitive advantages such as product pricing, reduced costs due to economies of scale, their ability to scale their business, customer loyalty, and increasing their client base.
As of December 31, 2023, they had an order book of ₹ 8,287.04 million, which constituted 139.16% of their revenue from operations for Fiscal 2023. As of March 31, 2023, March 31, 2022, and March 31, 2021, they had an order book of ₹ 5,633.53 million, ₹ 4,345.70 million and ₹ 3,356.78 million, respectively.
As of March 31, 2024, their workforce consisted of 1,061 employees, out of which 53 employees constitute their professional management team.
Company Financials
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 1,171.01 | 966.26 | 845.40 | 835.88 |
| Revenue | 557.86 | 614.32 | 470.84 | 513.03 |
| Profit After Tax | 14.34 | 12.97 | 8.20 | 14.21 |
| Net Worth | 428.19 | 413.70 | 401.37 | 448.50 |
| Reserves and Surplus | 380.23 | 408.17 | 395.85 | 432.81 |
| Total Borrowing | 407.14 | 352.62 | 285.36 | 257.17 |
Amount in ₹ Crore | ||||
Objectives of the IPO
The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects
- Funding working capital requirements of the Company.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company.
- General corporate purposes.
Promoters of the company
Krishan Lalit Bansal, Ashima Bansal, and DDE Piping Components Private Limited are the Promoters of the Company. The Promoters collectively hold 51,571,360 Equity Shares, representing 97.24% of the paid-up Equity Share capital of the Company.
IPO details
| IPO Date | June 19, 2024 to June 21, 2024 |
| Listing Date | Wednesday, June 26, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹193 to ₹203 per share |
| Lot Size | 73 Shares |
| Total Issue Size | 20,591,852 shares (aggregating up to ₹418.01 Cr) |
| Fresh Issue | 16,009,852 shares (aggregating up to ₹325.00 Cr) |
| Offer for Sale | 4,582,000 shares of ₹10 (aggregating up to ₹93.01 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 73 | ₹14,819 |
| Retail (Max) | 13 | 949 | ₹192,647 |
| S-HNI (Min) | 14 | 1,022 | ₹207,466 |
| S-HNI (Max) | 67 | 4,891 | ₹992,873 |
| B-HNI (Min) | 68 | 4,964 | ₹1,007,692 |
Allotment Schedule
| Basis of Allotment | Monday, June 24, 2024 |
| Initiation of Refunds | Tuesday, June 25, 2024 |
| The credit of Shares to Demat | Tuesday, June 25, 2024 |
| Listing Date | Wednesday, June 26, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 21, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
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