Desco Infratech Limited IPO is fully book build issue and total IPO size is ₹30.75 crores. The total offering consists of 2050000 shares.
The subscription period for the Desco Infratech Limited IPO starts on March 24, 2025, and ends on March 26, 2025. The allotment process is expected to be finalized by March 27, 2025.
The Desco Infratech Limited IPO is scheduled to list on BSE SME, with a listing date of March 31, 2025. The price band for the Desco Infratech Limited IPO is ₹147 to ₹150 per share.
Registrar for this IPO is Bigshare Services Private Limited and lead managers for Desco Infratech Limited IPO are Smart Horizon Capital Advisors Private Limited.
IPO Schedule
| IPO Open Date | Monday, 24 Mar, 2025 |
|---|---|
| IPO Close Date | Wednesday, 26 Mar, 2025 |
| IPO Allotment Date | Thursday, 27 Mar, 2025 |
| Refund Initiation | Friday, 28 Mar, 2025 |
| Share credit in Demat | Friday, 28 Mar, 2025 |
| Listing Date | Monday, 31 Mar, 2025 |
Key Details
| Price Band | ₹147 to ₹150 Per Share |
|---|---|
| Lot Size | 1000 Shares |
| Face Value | ₹10 Per Equity Share |
| Total Issue Size | ₹30.75 Crores |
| Fresh Issue | ₹30.75 Crores |
| Issue Type | Fresh Issue |
| Listing At | BSE SME |
Share Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB | 50% |
| Retail | 35% |
| NII/HNI | 15% |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1000 | 150,000 |
| Retail (Max) | 1 | 1000 | 150,000 |
| S-HNI (Min) | 2 | 2000 | 300,000 |
| S-HNI (Max) | 6 | 6000 | 900,000 |
About Desco Infratech Limited Company
Our company specializes in providing comprehensive infrastructure and maintenance services, primarily for city gas distribution. This includes pipeline laying, installation, testing, and commissioning for Piped Natural Gas (PNG) serving both domestic and commercial users. We offer Operation & Maintenance (O&M) services covering underground and above-ground gas pipelines, with a focus on leak detection and emergency response. We have recently expanded into the power division, focusing on the installation of Low Tension (LT) and High Tension (HT) cables. Also expanded our services portfolio to include water distribution projects.
The Central government has increased its capital expenditure (capex) allocation to ₹11.11 lakh crore for the fiscal year beginning April 1, 2024. A network of 35 Multimodal Logistics Parks is planned to be developed as part of Bharatmala Pariyojana, with a total investment of about Rs. 46,000 crore, which once operational, shall be able to handle around 700 million metric tonnes of cargo.
With a presence in Gujarat, Haryana, Uttar Pradesh and Punjab, we acquire projects through transparent competitive bidding. Key performance indicators include a Revenue from Operations of ₹2,939.31 lakhs for the financial year ended March 31, 2024, EBITDA of ₹555.90 lakhs and a PAT of ₹345.80 lakhs. Our strengths lie in our experience in the city gas distribution sector and our commitment to quality, as demonstrated by our ISO 9001:2015 certification.
Desco Infratech Limited Financial Details
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 361.21 | 237.99 | 206.48 | 117.28 |
| Revenue | 22.75 | 29.49 | 29.28 | 19.92 |
| Profit After Tax | 3.38 | 3.46 | 1.23 | 0.83 |
| Net Worth | 226.68 | 119.93 | 50.37 | 38.51 |
| Reserves and Surplus | 170.42 | 117.16 | 47.87 | 36.01 |
| Total Borrowing | 68.15 | 40.64 | 58.10 | 30.88 |
₹ In Crore
Key Performance Indicator
| Basic EPS (in ₹) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt-Equity Ratio | Return on Equity (ROE) | Return on Capital Employed (ROCE) |
|---|---|---|---|---|---|
| 6.95 | 28.83% | 24.10 | 0.34 | 40.61% |
Offer Objectives
The company is issuing up to 20,50,000 equity shares to raise funds for several key objectives.
A significant portion of the net proceeds will be allocated towards:
- Corporate Office: Funding capital expenditure for setting up a corporate office in Surat, Gujarat, estimated at ₹1.04 crore.
- Machinery Purchase: Investing ₹1.68 crore in purchasing machinery to enhance operational capabilities.
- Working Capital: Allocating ₹18 crore to meet the company's working capital requirements.
A portion of the funds will also be used for general corporate purposes, with a limit of 25% of the gross proceeds of the Issue.
The deployment of these funds is planned over Fiscal Years 2024-25 and 2025-26, with ₹1.04 crore for corporate office setup and ₹1.68 crore for machinery purchase scheduled for FY24-25. Working capital needs will be addressed with ₹7 crore in FY24-25 and ₹11 crore in FY25-26. However, the company acknowledges that actual utilization may vary due to market conditions and other factors.
The company confirms that transactions in the Equity Shares by Promoters and Promoter Group between the date of this Red Herring Prospectus and the issue Closing Date shall be reported to the Stock Exchange within 24 hours of such transaction.
Company Details
Address:
A-703, Swastik Universal, Next to Valentine Theatre,
Dumas Road, Umra, Surat, Gujarat - 395007 India.
Phone: +91 7574 999 097
Email: [email protected]
Website: http://www.descoinfra.co.in
IPO Registrar Details
Bigshare Services Private Limited
Phone: 022 - 6263 8200
Email: [email protected]
Website: http://www.bigshareonline.com
