Market Observations
The market became volatile again, with Nifty forming a head and shoulder pattern. It seemed that it was finally time for investors to step in. After much anticipation, companies are now coming up with IPOs. But what challenges will they face? Is there a clash with other IPOs? What about the valuations?
Key Concerns
Among all the concerns, the debt aspect remains significant. We’ve seen that many companies struggle to service their debt obligations. What are the valuations? How much is the OFS (Offer for Sale)? How much is the fresh issue? What are the funds being raised for? There are many questions, but this video aims to answer them all.
Introduction
Hi, everyone! we will discuss the Deepak Builders IPO in detail. We’ll analyze every aspect minutely, from oversubscription rates to potential listing gains.
IPO Overview
Before diving in, if you haven’t subscribed yet or are new to the channel, stay tuned! War Energy’s IPO can offer 16 stocks with shareholder quotas. You’ll be informed on how to proceed when the RHP (Red Herring Prospectus) and DRHP (Draft Red Herring Prospectus) are released.
Market Sentiment
With current discussions around various funds, gold ETFs have recently shown breakout potential. Given the current market demands, the Deepak Builders IPO is looking for only ₹260 crore—a manageable figure.
Company Background
Let’s start with Deepak Builders and Engineers Limited. Established in 2017, it is a construction company specializing in turnkey projects encompassing Architectural, Structural Civil, MEP, and Fire Fighting Systems. Their projects include Operational Theaters and medical gas pipelines for hospitals.
Project Scope
The company has completed construction projects in four states: Punjab, Haryana, Rajasthan, and Uttarakhand, as well as in two UTs—Chandigarh and Delhi NCR. Their order book for the first quarter amounts to ₹13,000 million, which is an improvement from the previous year.
Financial Health
Examining their financials, the company’s projects and its ability to execute them is crucial. They are currently engaged in 12 projects, including seven EPC projects and five item percentage rate contracts.
Investment Questions
As we proceed, many might wonder: Should I apply for the IPO? Which demat account should I open? The biggest issue often revolves around brokerage fees and glitches during transactions.
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Debt and Financial Ratios
Let’s address the debt situation: It has been stable, with no recent increases in loans. The company has maintained a low debt-to-equity ratio. Their financials show a Return on Equity of 8% and a Return on Capital Employed of 9%.
Final Thoughts on the IPO
To summarize, you should definitely apply for this IPO. It’s a small offering with an impressive order book, and the company is consistently increasing its asset base. The expected oversubscription could be around 50 times or even higher.
Listing Gains
Regarding potential listing gains, I anticipate they could range between ₹15 to ₹30 per share. Therefore, I am looking forward to applying for this IPO.