DEE Development Engineers Limited IPO

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They are a leading engineering company specializing in providing comprehensive process piping solutions for various industries, including oil and gas, power (including nuclear), chemicals, and other process industries. With over three and a half decades of manufacturing experience, they have successfully leveraged their brand, strategically located manufacturing facilities, and engineering capabilities to expand their business.

Core Offerings

Their specialized process piping solutions include:
i. High-Pressure Piping Systems                                                               ii. Piping Spools
iii. High-Frequency Induction Pipe Bends                                             iv. Longitudinally Submerged Arc Welding Pipes
v. Industrial Pipe Fittings                                                                           vi. Pressure Vessels
vii. Industrial Stacks                                                                                  viii. Modular Skids
ix. Accessories (e.g., Boiler Superheater Coils, De-superheaters)      x. Customized Manufactured Components

They rank among the leading process pipe solution providers globally, with the technical capability to address complex requirements across multiple industrial segments. They are the largest player in process piping solutions in India by installed capacity, according to the D&B Report.

Engineering and Manufacturing Services

They offer a comprehensive range of engineering services, including:
i. Pre-Bid Engineering         ii. Basic Engineering          iii. Detailed Engineering     iv. Support Engineering

Their pre-fabrication services encompass:
i. Cutting and Beveling (Conventional and CNC Machines)
ii. Welding Services (Semi-Automatic and Fully Automatic Robotic Welding Machines)
iii. Conventional and Digital Radiography
iv. Post Weld Heat Treatment (CNG Fired Fully Calibrated Furnaces and Induction Heating)
v. Hydro Testing
vi. Pickling and Passivation
vii. Grit Blasting (Manual and Semi-Automatic)
viii. Painting (Manual and Semi-Automatic)

They specialize in handling a variety of complex metals, including varying grades of carbon steel, stainless steel, super duplex stainless steel, alloy steel, and other materials such as inconel and hastelloy.

Global Reach and Clientele

They serve both domestic and international markets, supplying products to countries including the USA, Europe, Japan, Canada, the Middle East, Nigeria, Vietnam, Singapore, China, and Taiwan. Their revenue from operations outside India represented significant portions of their total revenue across recent fiscal years.

Client Relationships

Over the decades, they have developed strong relationships with global companies such as JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries, and John Cockerill S.A., as well as leading Indian companies like Reliance Industries Limited, Thermax Babcock & Wilcox Energy Solutions Limited, HPCL–Mittal Energy Limited, Toshiba JSW Power Systems Private Limited, UOP India Private Limited, Doosan Power Systems India Private Limited, and Andritz Technologies Private Limited.

Strategic Locations

Given the significant portion of their sales to overseas customers, their facilities in Anjar, Gujarat, and Bangkok, Thailand, are strategically located with access to ports, facilitating efficient global distribution.

This overview encapsulates their extensive capabilities, strategic positioning, and robust relationships, underscoring their leadership in the process piping solutions industry.

Objects of the DEE Development Engineers Limited IPO:

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects: i. Funding working capital requirements of the Company; ii. Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company; and iii. General corporate purposes Total number of shares issue :- i. Fresh issue is 16,009,852 shares, ii. Offer for sale is 4,582,000 shares.
DRHP of DEE Development Engineers Limited IPO
RHP of DEE Development Engineers Limited IPO

DEE Development Engineers Limited IPO Details:

Open Date: Jun 19 2024
Close Date: Jun 21 2024
Total Shares: 20,591,852
Face Value: ₹ 10 Per Equity Share
Issue Size: 418.01 Cr.
Lot Size: 73 Shares
Issue Price: ₹ 193 - 203 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jun 26 2024

Promoters And Management:

Krishan Lalit Bansal is the Chairman and Managing Director of the Company. He holds a bachelors’ degree in mechanical engineering from Punjab Engineering College, Chandigarh. He has been associated with the Company since its inception in 1988 and has experience in prefabricated piping systems and bio-mass power sector. He incorporated a partnership concern, Development Engineers pursuant to a deed of partnership dated August 12, 1986 which was later dissolved pursuant to a deed of dissolution dated April 1, 1988. His other ventures include DEE Group Trust and DDE Piping Components Private Limited. He has been conferred with various awards including ‘Business Leader of the Year’ in 2011 and ‘Lifetime Achievement Award’ in 2016 by the Faridabad Industrial Association. He was also conferred with the ‘Business Excellence Award’ by International Study Circle and the ‘Rashtriya Rattan Award’ by the All-India National Unity Council for his contributions to the industry. Ashima Bansal is a Whole-time Director of the Company. She holds a bachelors’ degree in education from D.S. College of Education for Women, Ferozepur City, Panjab University and a masters’ degree in arts from Panjab University. She has been associated with the Company since April 30, 2007. Shikha Bansal is a Whole-time Director of the Company. She holds a bachelors’ degree in commerce from University of Delhi and masters’ degree in commerce from Himachal Pradesh University. She has been associated with the Company since December 1, 2020.

Financials of DEE Development Engineers Limited IPO:

A) Balance Sheet
Particular (In Cr) Mar-21 Mar-22 Mar-23 9M-FY24
Equity Share Capital 15.6 10.6 10.6 53
Reserves 439 401 413 385
Borrowings 257 285 353 333
Trade Payables 77 103 132 230
Other Liabilities 47 45 57 170
Total Liabilities 836 845 966 1171
Net Block 360 345 365 364
Capital Work in Progress 2 4 3 54
Investments 0 0 0 0
Other Assets 20 27 36 56
Total NC Assets 382 376 404 474
Receivables 198 153 173 174
Inventory 184 242 289 421
Cash & Bank 32 25 33 36
Other Assets 40 50 67 66
Face value 10 10 10 10
B) Profit & Loss Statement
Particular (In Cr) Mar-21 Mar-22 Mar-23 9MFY24
Revenue from Operations 495 461 595 545
Cost of Material Consumed 198 195 226 225
Purchases 1 1 3 0
Change in Inventory 37 -24 -39 -49
Employee Cost 74 79 111 103
Other Expenses 131 145 225 198
EBITDA 54 65 69 68
EBIDTA Margin 10.91% 14.10% 11.60% 12.48%
Other income 18 10 19 12
Depreciation 35 36 38 33
Interest 27 25 30 28
Profit before tax 9 13 20 19
Tax -5 5 7 5
Net profit 14 8 13 14
NPM (%) 2.73% 1.70% 2.12% 2.51%
C) Cash Flow Statement
Particular (In Cr) Mar-21 Mar-22 Mar-23 9M-FY24
Cash From Operating Activity
Profit From Operation 9 13 20 19
Receivable 0 45 -21 0
Inventory 63 -58 -47 -132
Payable 6 24 33 98
Other WC Items -34 -9 -21 33
Working Capital Changes 44 15 -36 18
Direct Taxes -7 -6 -6 -6
Net Cash Inflow from Operating Activity
 95 67 14 70
Cash from Investing Activity
Fixed assets purchased -17 -26 -58 -69
Fixed assets sold 1 2 3 0
Other investing items 9 2 3 -26
Net cash inflow from investing activities
 -7 -22 -52 -95
Cash from Financing Activity
Proceeds from borrowings -55 30 77 55
Intrest paid fin -32 -29 -35 -27
Buy Back of Shares 0 -50 0 0
Other financing items -1 -1 -2 -3
Net Cash Flow 5 0.3 1.8 1.4

Comparison With Peers:

Name of the Companies Revenue (Cr) Profit (Cr) EPS P/E CMP MCap (Cr)
DEE Development Engineers Limited 614 13 88.9 2.28 203 1,402
ISGEC Heavy Engineering Limited 6399 206 26.7 36.6 1,211 8,906
*All the data is as per FY2023

Recommendation on DEE Development Engineers Limited IPO:

Review and Recommendation of DEE Development Engineers by team IZ is 4/10. 1. DEE Development Engineers Limited is an engineering company specializing in providing advanced process piping solutions to various industries such as oil and gas, power (including nuclear), chemicals, and other process industries. Their comprehensive services encompass engineering, procurement, and manufacturing, backed by over three and a half decades of experience. They are recognized as a leading global provider of process piping solutions, known for their technical prowess and extensive capabilities. 2. Core Business and Capabilities a. Specialized Process Piping Solutions :- They offer a wide range of specialized process piping solutions, including: i. High-Pressure Piping Systems                        ii. Piping Spools iii. High-Frequency Induction Pipe Bends         iv. Longitudinally Submerged Arc Welding Pipes v. Industrial Pipe Fittings                                     vi. Pressure Vessels vii. Industrial Stacks                                             viii. Modular Skids ix. Customized Components :-  such as boiler superheater coils and de-superheaters b. Engineering Services :- Their engineering services cover: i. Pre-Bid Engineering                                           ii. Basic and Detailed Engineering iii. Support Engineering :-  for process/power piping systems c. Pre-Fabrication Services :- Their pre-fabrication capabilities include: i. Cutting and Beveling                                           ii. Welding Services iii. Conventional and Digital Radiography           iv. Post Weld Heat Treatment v. Hydro Testing                                                      vi. Pickling and Passivation vii. Grit Blasting and Painting d. Materials Expertise :- They specialize in handling a variety of complex metals including: i. Carbon Steel                       ii. Stainless Steel                    iii. Super Duplex Stainless Steel iv. Alloy Steel                          v. Inconel                                 vi. Hastelloy 3. Global Presence and Clients They serve a diverse international clientele, with exports to countries including the USA, Europe, Japan, Canada, the Middle East, Nigeria, Vietnam, Singapore, China, and Taiwan. Their prestigious clients include: i. JGC Corporation                                                                 ii. Nooter Eriksen iii. MAN Energy Solutions SE                                               iv. Mitsubishi Heavy Industries v. John Cockerill S.A.                                                            vi. Reliance Industries Limited vii. HPCL–Mittal Energy Limited                                         viii. UOP India Private Limited ix. Doosan Power Systems India Private Limited            x. Andritz Technologies Private Limited xi. Toshiba JSW Power Systems Private Limited xii. Thermax Babcock & Wilcox Energy Solutions Limited India 4. Competition They face competition from both domestic and international companies. Their competitive edge lies in their extensive experience, established relationships, and technical capabilities. Despite facing competitors with greater resources, they leverage their strategic locations, efficient production processes, and strong customer relationships to maintain their market position. 5. The Revenue has Increased from Rs.495 Crores in FY21 to Rs.595 Crores in FY23. 6. The EBITDA has Increased from 54 Crore in FY21 to 69 Crores in FY23. 7. The PAT has Decreased from 14 Crores in FY21 to 13 Crores in FY23. 8. As per FY23, CFO/EBITDA is 1.09, As per FY24, EPS is 2.76, 9. Market Capitalization is 1402 Crores & P/E is 73.32x based on FY24.

Lead Manager of DEE Development Engineers Limited IPO:

  1. Equirus Capital Private Limited
  2. SBI Capital Markets Limited

Registrar of DEE Development Engineers Limited IPO:

  1. Link Intime India Private Limited

Company Address:

DEE Development Engineers Limited Unit 1, Prithla-Tatarpur Road, Village Tatarpur, Dist. Palwal, Faridabad- 121102, Phone: +91 1275 248345 Email: secretarial@deepiping.com Website: https://www.deepiping.com/

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