DEE Piping Systems will hit the bourses on June 26. The company will list on both the NSE and BSE mainboard segments. The company opened its issue to investors on June 19 and closed it on June 21. Let’s see what the grey market premium is suggesting about the listing:
Grey Market Premium
DEE Piping Systems shares were fetching a premium of 45% ahead of listing. The grey market is an unofficial place where shares change hands before stocks of the company trade legally in the public market.
Price Band
The company kept the price band in a range of Rs 193 to Rs 203 per equity share.
Issue Size
The company collected a total of Rs 418 crore. The IPO has two segments: offer for sale and fresh shares. The company raised Rs 325 crore by offering 16 million fresh shares and Rs 4.6 million shares were sold by promoters and other selling shareholders to collect Rs 93 crore.
Allotment and Listing
A retail investor had to subscribe to a minimum of one lot containing 73 shares, which equalled to Rs 14,819. The allotment of shares was fianlised on June 24.
About DEE Piping Systems
DEE Development Engineers (DEE) is an engineering firm that offers engineering, procurement, and manufacturing services to supply process piping solutions (being the biggest domestic player in installed capacity) to the oil and gas, chemicals, power (including nuclear), and other process industries. Reliance Industries, Toshiba, and UOP India Private Ltd are just a few of the domestic and international clients the company serves from its seven strategically positioned manufacturing facilities, one of which is located overseas in Thailand.
BRLMs
SBI Capital Markets and Equirus Capital handled the work of lead book-runners while Link Intime India as the registrar.
Expert’s take on IPO
The company’s P/E ratio is 73.2 times its FY24 annualised earnings, with a market capitalisation of Rs 14,016.9 million after the issuance of equity shares and a market cap-to-sales ratio of 1.92 times its FY24 annualized earnings. DEE Piping holds a strong competitive position with well-established client relationships and a diverse range of specialised offerings. The company notably benefits from a solid order book and consistent financial performance. “Looking at these factors, we recommend a “Subscribe” rating to the IPO,” said Anand Rathi in an IPO note.
