Desco Infratech IPO: A Comprehensive Guide
The Initial Public Offering (IPO) market is buzzing with activity, and one name that's catching the attention of investors is Desco Infratech. This blog post provides an in-depth analysis of the Desco Infratech IPO, offering essential details to help you make an informed decision.
What Does Desco Infratech Do?
Desco Infratech Limited is an infrastructure company specializing in Engineering, Planning, & Construction, with a focus on:
- City Gas Distribution
- Renewable Energy
- Water
- Power sectors
Desco Infratech IPO Details
Here's a quick overview of the IPO:
- IPO Size: Rs 30.75 crores
- Issue Type: Fresh issue of 20.50 lakh shares
- IPO Dates: March 24, 2025 to March 26, 2025
- Allotment (Expected): Thursday, March 27, 2025
- Listing (Tentative): Tuesday, April 1, 2025 on BSE SME
- Price Band: ₹147 to ₹150 per share
- Lot Size: 1000 shares
- Minimum Investment: ₹1,47,000 (suggested bid at ₹1,50,000 cutoff price)
Subscription Details
Keep an eye on the subscription status as it unfolds during the IPO period. Oversubscription often indicates strong investor interest.
Company Valuation
The market capitalization of Desco Infratech IPO is Rs 115.14 Cr. Evaluating the company's valuation is crucial. Consider these metrics:
- Earnings Per Share (EPS):
- Pre-IPO EPS (Rs): 6.15
- Post Issue EPS (Rs): 8.81
- Price to Earnings Ratio (P/E):
- Pre IPO (x): 24.4
- Post IPO (x): 17.03
Lot Size Details
| Investor Type | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1000 | ₹1,50,000 |
| Retail (Max) | 1 | 1000 | ₹1,50,000 |
| HNI (Min) | 2 | 2,000 | ₹3,00,000 |
Company Financials
A look at the financials provides insight into the company's performance:
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 36.12 | 23.8 | 20.65 | 11.73 |
| Revenue | 22.75 | 29.49 | 29.28 | 19.92 |
| Profit After Tax | 3.38 | 3.46 | 1.23 | 0.83 |
| Net Worth | 22.67 | 11.99 | 5.04 | 3.85 |
| Total Borrowing | 6.82 | 4.06 | 5.81 | 3.09 |
Amount in ₹ Crore
Key Performance Indicators (KPI)
| KPI | Value |
|---|---|
| ROE | 40.61% |
| ROCE | 75.97% |
| Debt/Equity | 0.34 |
| RoNW | 28.83% |
| PAT Margin | 11.76% |
| Price to Book Value | 6.22 |
Promoters
The promoters of Desco Infratech Limited are:
- Ms. Indiraben Pruthubhai Desai
- Mr. Pankaj Pruthu Desai
- Ms Hina Pankaj Desai
- Mr. Malhar P Desai
- Mr. Samarth Pankaj Desai
| Share Holding Pre Issue | Share Holding Post Issue | |
|---|---|---|
| Promoter Holding | 79.29% | 58.12% |
Note : The value will be calculated using Equity Dilution = Share Holding Pre Issue - Share Holding Post Issue
IPO Issue Objectives
Desco Infratech plans to use the net proceeds from the IPO for:
- Funding capital expenditure for a corporate office in Surat, Gujarat.
- Funding capital expenditure for machinery purchase.
- Funding working capital requirements.
- General corporate purposes.
Anchor Investors
Desco Infratech IPO raised Rs 8.66 crore from anchor investors on March 21, 2025.
| Details | |
|---|---|
| Bid Date | March 21, 2025 |
| Shares Offered | 5,77,000 |
| Anchor Portion Size | Rs 8.66 Cr |
| Anchor Lock-in (50% shares) | April 26, 2025 |
| Anchor Lock-in (remaining shares) | June 25, 2025 |
Company Contact Details
Desco Infratech Limited
A-703, Swastik Universal,
Next to Valentine Theatre, Dumas Road, Umra
Phone: +91 7574 999 09
Email: investors@descoinfra.co.in
Website: https://www.descoinfra.co.in/
IPO Registrar
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/IPO_Status.html
Conclusion
The Desco Infratech IPO presents an opportunity to invest in an infrastructure company with a diverse portfolio and growth potential. By analyzing the company's financials, objectives, and other critical details, investors can make well-informed decisions. Always consider your investment goals and risk tolerance before investing in any IPO.