About the Company:
Deepak Builders and Engineers Ltd 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.
While company’s primary focus and strength are deeply rooted in Construction Projects, we have diversified in undertaking specialized structural work such as flyovers, rail under bridge, rail over bridges, approach roads and development and redevelopment of railway stations.
Company undertakes Construction & Infrastructure Projects both, as EPC services on a fixed-sum turnkey basis as well as on an item-rate basis/percentage basis.
As an engineering and construction company, we have a proven track record of executing turnkey projects comprising of architectural & structural work, civil works, HVAC, Mechanical Electrical & Plumbing (“MEP”) works, firefighting & fire alarm systems, public health services, medical gas pipeline systems and external development work, including landscaping work.
As on June 30, 2024, Company owns and maintains 398 major equipment and machineries including concrete mixer, boom pump, transit mixer, JCBs, roller, mobile tower crane, containers, among others.
Since incorporation, company has transitioned into an established EPC player, demonstrating our expertise in various construction and infrastructure development projects including specialized structures across four (4) states of India, i.e. Punjab, Haryana, Rajasthan, Uttarakhand and two (2) Union Territories i.e. Chandigarh and National Capital Territory of Delhi.
Promoter Background:
Deepak Builders Partnership Firm was constituted by our Promoter, Deepak Kumar Singal on April 1, 1990. Deepak Kumar Singal (through the Erstwhile Firm) has been in the construction business for over 30 years and has also been instrumental in the growth of our Company.
Since 1990, Deepak Kumar Singal has contributed towards the completion of over sixty (60) Construction & Infrastructure Projects (inclusive of projects completed in Erstwhile Firm as well as our Company), which includes nine (9) EPC projects and fifty-one (51) projects on an item-rate/percentage rate basis.
Company’s Ongoing Projects:
Currently, Company has twelve (12) ongoing projects, including seven (7) EPC projects and five (5) item-rate/percentage rate contracts.
Of our total ongoing projects, our Construction Projects comprises of four (4) hospital and medical college projects, one (1) administrative & institutional buildings; one (1) industrial building; and our Infrastructure Projects comprises of four (4) projects relating to upgradation/development/redevelopment of Railway Station and related work, and two (2) roads & bridges projects relating to rail over bridges.
Company’s Order Book:
Company’s order book, as on June 30, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, amounts to Rs.1380.3 cr, Rs.1112.6 cr, Rs.1657.8 cr and Rs.719.6 cr, respectively.
Of our total order book value as on June 30, 2024, projects awarded by Railways contributed 66.03%, industrial building project awarded by IOCL contributed 25.05%, and hospital and medical project awarded by government-controlled entities collectively contributed 4.38%.
Order Book for Ongoing Projects, as on June 30, 2024.
The table below outlines the Construction & Infrastructure Projects executed by us during Fiscal 2022 to Fiscal 2024 and for the three months period ended June 30, 2024.
Company’s Customers:
| Northern Railways. | Public Work (Roads & Buildings) Department, Punjab. | Public Work (Roads & Buildings) Department, Haryana. | Public Work Department, Uttarakhand (“PWD Uttarakhand”) |
| WAPCOS. | NPCCL. | HSCC. | IOCL. |
| Greater Mohali Area Development Authority, Punjab. | Ludhiana Smart City Limited (“LSCL”) | Punjab Cricket Association (“PCA”) | Punjab Heritage and Tourism Promotion Board (“PHTPB”). |
Competitors in the Business:
The listed peer set companies engaged in similar line of business are ITD Cementation Ltd, PSP Projects Ltd, Ahluwalia Contracts (India) Ltd, IRCON International Ltd
Management Team:
- Mr. Deepak Kumar Singal (Designation: Chairman cum Managing Director)
- Mrs. Sunita Singal (Designation: Whole-time Director)
Objectives of the Issue:
Offer For Sale: (Rs.42.83 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.217.21 cr)
- Repayment/prepayment, in full or part, of certain borrowings availed by our Company.
- Funding of working capital requirements of our Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Repayment/prepayment, in full or part, of certain borrowings availed by our Company | 30 cr |
| Funding of working capital requirements of our Company | 111.9 cr |
Positives for the Company:
Decent Order book with a Government Client base.
Company has a marquee client base consisting of government, semi-government and government-controlled entities, with our focus on executing high quality construction projects.
Continuous Focus on equipment ownership.
- Equipment asset management is a critical element of timely delivery of quality infrastructure development and construction projects. Company believes that this also provides us with a competitive advantage over other infrastructure development and construction companies that outsource their construction related activities to external contractors.
- Company has consistently invested in fleets of modern construction equipment. We strive to acquire equipment of the same class and same brand to facilitate the training of operators and help reduce equipment down time and maintenance cost.
- As on June 30, 2024, Company owns and maintains 398 major equipment and machineries including concrete mixer, boom pump, transit mixer, JCBs, roller, mobile tower crane, containers, among others.
Establish our position in Northern India and expand our foot print in other geographies.
- Company is an established integrated construction and engineering company having our operation in Northern India, particularly in four (4) states, i.e. Punjab, Haryana, Rajasthan, Uttarakhand and two (2) Union Territories i.e. Chandigarh and National Capital Territory of Delhi and intend to grow into one of the leading construction companies in Northern India.
- Company also intends to expand our geographical footprint and grow our business by bidding for and undertaking Construction & Infrastructure Projects outside the Northern region of the country.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 | Upto 30th June 24 |
|---|---|---|---|---|
| Revenue | 363.0 | 433.4 | 511.4 | 105.1 |
| Net Profit | 17.6 | 21.3 | 60.4 | 14.2 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Deepak Builders & Engineers Ltd | 10 | 16.84 | 12.05 | 52.39% | 39.37 |
| IRCON International Ltd | 2 | 9.17 | 24.67 | 15.76% | 61.37 |
| Ahluwalia Contracts Ltd | 2 | 56.06 | 19.25 | 23.44% | 239.17 |
| PSP Projects Ltd | 10 | 34.42 | 19.16 | 13.55% | 254.06 |
| ITD Cementation Ltd | 1 | 15.93 | 37.04 | 20% | 86.95 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 21st October 2024 |
| Issue Closes on | 23rd October 2024 |
| Issue Price | Rs.192 -203 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35 % |
| Minimum Lot | 73 Shares |
| Minimum Investment | Rs.14,819 |
| Issue Constitutes | 27.50 % |
| Issue Size | Rs.260 cr ($ 30 million) |
| Market Cap | Rs.945 cr ($ 112 million ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,07,00,000 (Rs.217.21 cr) |
| Equity Shares Offered (OFS) | 21,10,000 (Rs.42.83 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 1,28,10,000 (Rs.945 cr) |
| Equity Shares Prior to the Issue | 3,58,80,860 |
| Equity Shares after the Issue | 4,65,80,860 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 16.84 | 12.05 | 52.39% | 39.37 | 1.0 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Deepak Builders and Engineers Ltd is a prominent engineering and construction company known for its expertise in executing large-scale projects. With a focus on constructing administrative and institutional buildings, hospitals, medical colleges, industrial structures, and historical complexes, the company plays a significant role in shaping the infrastructure landscape. They also specialize in building stadiums, sports complexes, and residential complexes, alongside other developmental projects.
Beyond construction, the company excels in specialized structural work, including flyovers, rail overbridges, underbridges, and the development of railway stations. They provide EPC (Engineering, Procurement, and Construction) services, offering turnkey projects or working on item-rate and percentage basis contracts. Their proven track record includes comprehensive work in architecture, civil works, HVAC, MEP (Mechanical, Electrical, and Plumbing), firefighting, medical gas systems, and landscaping. As of June 2024, the company owns 398 major pieces of equipment, reflecting their capacity to handle large-scale projects. Deepak Builders operates across Punjab, Haryana, Rajasthan, Uttarakhand, Chandigarh, and Delhi, with a strong portfolio of government and semi-government clients. With a steady order book and a focus on high-quality execution, the company is positioned to grow and expand beyond Northern India. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 24th October 2024 |
| Initiation of Refunds | on or Before 25th October 2024 |
| Credit of Equity Shares: | on or Before 25th October 2024 |
| Listing Date: | on or Before 28th October 2024 |
| Company Contact Info: |
|---|
| Deepak Builders and Engineers Ltd Ahluwalia Chambers, 1st Floor, Plot No. 16 &17, Local Shopping Centre, Madangir, near Pushpa Bhawan, South Delhi, New Delhi – 110 062, India. Tel: +91 98759 09242 E-mail: investor@deepakbuilders.co.in Website: www.deepakbuilders.co.in |
| Registrar to the Issue: |
|---|
| Kfin Technologies Limited Selenium, Tower B, Plot No. 31 and 32 Financial District Nanakramguda, Serilingampally Mandal Hyderabad 500 032 Telangana, India Tel: +91 40 6716 2222 E-mail: deepakbuilders.ipo@kfintech.com Website: www.kfintech.com |
| Check IPO Allotment Status: |
|---|
KfinTech Website (Click on the below Link)http://kfintech/IPO/Allotment_Status |
