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Growing potential, with improved margins.

Salient features of the IPO:

• Deepak Builders & Engineers India Ltd. (DBEIL), is an integrated engineering and construction company, specializing in execution and construction of administrative & institutional buildings, hospitals and medical colleges, industrial building, historical memorial complex, stadium and sports complex, residential complex and various developmental and other construction activity, is coming up with an IPO to raise around Rs. 245.9 - 260.0cr, which opens on 21st Oct. and closes on 23rd Oct. 2024. The price band is Rs. 192 - 203 per share.

• This public issue is a combination of fresh issue (Rs. 205.4 - 217.2cr) and OFS (Rs. 40.5 - 42.8cr). The company will not receive any proceeds from the OFS portion. From the fresh issue net proceeds, the company will be utilizing Rs. 30.0cr for repayment or prepayment, in full or part, of certain borrowings availed by the company and Rs. 111.9cr for funding of working capital requirements of the company. Residual proceeds will be used for general corporate purposes.

• Some of the promoter & promoter group (P&PG) entities is participating in the OFS and offloading 0.211cr equity shares. Post-IPO, the P&PG and public shareholders will have 72.50% and 27.50% stake in the company, respectively.

Key competitive strengths:

• Decent order book with a government client base

• Continuous Focus on equipment ownership

• Strong financial performance

• Experienced Promoters and Strong Senior Management Expertise

Risk and concerns:

• General slowdown in the global economic activities

• Major revenue concentration from government and government controlled entities

• Projects concentration in the state of Punjab

• Revenue are generated from a limited number of clients

• Competition Below are the

key highlights of the company:

• India's construction industry is growing rapidly and is expected to reach USD 1.4 trillion by 2025, contributing 8%-10% of the country's GDP. This is a major increase from its current size of around USD 820 billion, highlighting the sector's strong potential. Over the next six years, the industry is expected to double in size. By 2030, the construction sector's contribution to India's GDP could reach 15%, making it a key driver of the economy.

• The Indian government's ambitious Gati Shakti National Master Plan is key to driving the construction industry forward. With strong growth driven by both government initiatives and private sector involvement, the future of the Indian construction industry looks promising. Continued focus on technology, sustainable practices, and workforce development will be essential to fully realizing the industry's potential and supporting India's broader economic growth.

• Incorporated on September 11, 2017, DBEIL is a full-service engineering and construction company. It specializes in building a wide range of structures, including administrative and institutional buildings, hospitals, medical colleges, industrial facilities, historical memorials, sports stadiums, residential complexes, and various other development projects. While construction is its core expertise, DBEIL has also expanded into infrastructure projects such as building flyovers, rail under bridges, rail over bridges, approach roads, and redeveloping railway stations. These construction and infrastructure projects form the backbone of the company's services.

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