Desco Infratech IPO: The public issue of infrastructure company Desco Infratech closed today on March 26 with a great subscription of 83.75 times. It opened on March 24. The company had planned to raise Rs 30.75 crore from this IPO. Only 20.50 lakh new shares were issued in the IPO. The reserve portion for qualified institutional buyers was filled 28.76 times, the reserve portion for non-institutional investors was filled 233.26 times and the reserve portion for retail investors was filled 50.62 times.
After the issue closes, the allotment will now be finalized on March 27. The shares may be listed on BSE SME on April 1. The bidding for the IPO was done in the price band of Rs 147-150 per share and lot size of 1000. Smart Horizon Capital Advisors is the book running lead manager for the IPO. The registrar is Bigshare Services Private Limited.
Desco Infratech focuses primarily on engineering, planning and construction in city gas distribution, renewable energy, water and power sectors. The promoters of the company are Indiraben Pruthubhai Desai, Pankaj Pruthu Desai, Hina Pankaj Desai, Malhar P Desai and Samarth Pankaj Desai. Shares of Desco Infratech are trading at a premium of Rs 12 or 8 per cent in the grey market.
How will the IPO money be used
The company will use the money raised from the IPO to set up a corporate office in Surat, Gujarat, purchase machinery, meet working capital requirements and for general corporate purposes. 50 percent of the IPO was reserved for qualified institutional buyers, 35 percent for retail investors and 15 percent for non-institutional investors.
Financial Position of Desco Infratech
Desco Infratech's revenue stood at Rs 29.49 crore in FY 2024. It was Rs 29.28 crore in FY 2023. The company's net profit in FY 2024 was recorded at Rs 3.46 crore, up from Rs 1.23 crore a year ago. In April-September 2024, revenue was Rs 22.75 crore, net profit was Rs 3.38 crore and borrowings were Rs 6.82 crore.
Disclaimer: The information provided here is for information purposes only. It is important to note here that investing in the market is subject to market risks. Always seek expert advice before investing as an investor. Moneycontrol never recommends investing money to anyone.
