IPO Listing: Shares of piping solutions provider Dee Development Engineers Ltd made a strong market debut on Wednesday, listing with a 67 per cent premium over its issue price of Rs 203. The stock opened at Rs 325 on the BSE, reflecting a 60 per cent increase from the issue price. Subsequently, it surged to Rs 365.70, marking an 80.14 percent gain.
On the NSE, the stock started trading at Rs 339, achieving a 66.99 percent rise.
The company’s market valuation reached Rs 2,246.33 crore.
“DEE’s exceptional listing performance signifies strong investor confidence in the company’s future prospects,” said Shivani Nyati, head of wealth, Swastika Investmart Ltd.
She added this impressive performance surpasses the anticipated strong listing, fuelled by the overwhelming investor response during the IPO.
“However, it’s crucial to maintain a balanced perspective now. Though we have a long-term view for this company, a stop-loss level of 300 could be maintained,” said Shivani adding that DEE’s strong competitive edge, established clientele, diverse product portfolio, robust order book, and consistent financial performance likely fueled investor enthusiasm.
The initial public offering (IPO) of DEE Development Engineers got subscribed 99.56 times on the last day of subscription on Friday.
The Rs 418-crore initial share sale had a fresh issue of up to Rs 325 crore and an offer for sale of up to 45,82,000 equity shares. The price range for the offer was Rs 193-203 per share.
Dee Development is an engineering company, providing specialised process piping solutions for industries like oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing.
Currently, the company has seven manufacturing facilities, with three at Palwal in Haryana, one each at Anjar in Gujarat, Barmer in Rajasthan, Numaligarh in Assam, and Bangkok in Thailand.
The company’s customers include JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, John Cockerill SA, Reliance Industries, HPCLMittal Energy Ltd and Toshiba JSW Power Systems.
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