Deepak Builders and Engineers, a leading construction company in India, has filed paperwork with market regulator SEBI to raise funds through an initial public offering. The company aims to issue 1.44 crore shares to strengthen its balance sheet and meet working capital needs. Funds raised will repay debt, support operations and explore opportunities. Deepak Builders specializes in various project types like buildings, hospitals and facilities. It has a proven track record of executing turnkey projects. Through the IPO, the company wants to enhance capabilities to sustain growth in the competitive engineering sector.
Deepak Builders and Engineers, a leading engineering and construction company, is planning to raise funds through an initial public offering (IPO) to further strengthen its financial position and enhance operational capabilities to support sustained growth.
The company has filed the initial paperwork with the Securities and Exchange Board of India (SEBI), the market regulator, for the proposed IPO. The issue will comprise a total issuance of 1.44 crore shares, of which 1.2 crore shares will be a fresh issue and the remaining 24 lakh shares will be part of an Offer for Sale (OFS) by the company's promoters, Deepak Kumar Singal and Sunita Singal.
Currently, Deepak Builders and Engineers is wholly owned by the promoters and their associated group entities. The funds raised through the IPO will be utilized for various purposes. A portion of INR 30 crores will be used to repay existing debt obligations. Additionally, a significant amount of INR 95 crores will be allocated to meet working capital requirements and ensure a robust financial position to support ongoing operations and future growth. Furthermore, a portion will be reserved for general corporate purposes to address any unforeseen expenses or capitalize on potential opportunities.
Fedex Securities Private Limited has been appointed as the book running lead manager responsible for overseeing the IPO process. By going public, Deepak Builders aims to position itself for sustained growth in the competitive engineering and construction industry.
Deepak Builders specializes in a wide range of projects including administrative, institutional, and residential buildings as well as hospitals, medical colleges, and industrial facilities. They have a proven track record executing turnkey projects encompassing architectural, structural, civil, mechanical, electrical, plumbing (MEP) and HVAC works. Successful projects include the Jang-E-Azadi Memorial in Kartarpur, the Heritage Street in Amritsar, the International Cricket Stadium in New Chandigarh, and the Crosswind Apartments in Ludhiana.
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