Desco Infratech IPO Key Details, Financials, and Investment Insights
Overview of Desco Infratech IPO
Desco Infratech IPO will open for subscription on March 24, 2025, and close on March 26, 2025. It is a Book Built Issue IPO, aiming to raise ₹30.75 crores, comprising a fresh issue of ₹30.75 crores. The price band is set between ₹147 to ₹150 per share, with a minimum lot size of 1000 shares.
The IPO allotment will be finalized on March 27, 2025, and shares will be listed on BSE SME on April 1, 2025. The company reported ₹29.49 crores in revenue for 2024, showing growth from ₹29.28 crores in 2023. The net profit increased from ₹1.23 crores (2023) to ₹3.46 crores (2024), making this IPO an attractive option for long-term investors.
Desco Infratech IPO Details
| IPO Details | Information |
|---|---|
| IPO Open Date | March 24, 2025 |
| IPO Close Date | March 26, 2025 |
| Face Value | ₹10 per share |
| Price Band | ₹147 – ₹150 per share |
| Issue Size | ₹30.75 crores |
| Fresh Issue | ₹30.75 crores |
| Issue Type | Book Built Issue |
| Listing Platform | BSE SME |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
Market Lot and Investment Details
| Investor Category | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail – Minimum | 1 | 1000 | ₹1,50,000 |
| Retail – Maximum | 1 | 1000 | ₹1,50,000 |
| S-HNI – Minimum | 2 | 2000 | ₹3,00,000 |
Important Dates for Desco Infratech IPO
| Event | Date |
|---|---|
| IPO Open Date | March 24, 2025 |
| IPO Close Date | March 26, 2025 |
| Basis of Allotment | March 27, 2025 |
| Refund Initiation | March 28, 2025 |
| Shares Credit to Demat | March 28, 2025 |
| Listing Date | April 1, 2025 |
Company Overview: Desco Infratech Limited
Desco Infratech Limited, incorporated in January 2011, is a leading provider of infrastructure and maintenance services for city gas distribution across India.
Key Business Highlights
- Specializes in pipeline laying, installation, testing, erection, and commissioning for Piped Natural Gas (PNG).
- Ensures lock pressure and leak detection testing on MDPE pipelines to prevent gas leaks and accidents.
- Provides operation and maintenance (O&M) services for both underground and above-ground gas pipeline networks.
- Recently expanded into the power sector, focusing on low-tension (LT) and high-tension (HT) cable installations.
- Has a presence in 14 states and 45+ cities across India.
Financial Performance of Desco Infratech
The company has displayed strong financial growth over recent years.
| Year | Revenue (₹ Crores) | Expense (₹ Crores) | Profit After Tax (₹ Crores) | Total Assets (₹ Crores) |
|---|---|---|---|---|
| 2022 | ₹19.92 | ₹18.71 | ₹0.83 | ₹11.73 |
| 2023 | ₹29.28 | ₹27.54 | ₹1.23 | ₹20.65 |
| 2024 | ₹29.49 | ₹24.52 | ₹3.46 | ₹23.80 |
| Sept 2024 | ₹22.75 | ₹18.33 | ₹3.38 | ₹36.12 |
Financial Highlights
- Revenue increased from ₹29.28 crores (2023) to ₹29.49 crores (2024).
- Net profit increased from ₹1.23 crores (2023) to ₹3.46 crores (2024).
- The company maintains a stable financial position and promising growth trajectory.
Desco Infratech IPO Valuation Metrics
| Metric | Value |
|---|---|
| Return on Equity (ROE) | 40.61% |
| EBITDA Margin | 18.91% |
| PAT Margin | 11.76% |
| Debt to Equity Ratio | 0.34 |
| Earnings Per Share (EPS) | ₹6.95 |
| Return on Net Worth (RoNW) | 28.83% |
| Net Asset Value (NAV) | ₹24.10 |
Peer Comparison
Desco Infratech competes with other infrastructure and gas distribution service providers.
| Company | EPS | PE Ratio | RoNW % | NAV (₹) |
|---|---|---|---|---|
| Rudra Gas Enterprise Ltd. | 7.44 | 10.17 | 18.01% | 31.49 |
| Likhita Infrastructure Ltd. | 16.74 | 15.72 | 21.29% | 78.62 |
Objects of the Issue
The funds raised from the IPO will be used for:
- Setting up a corporate office in Surat, Gujarat.
- Purchasing machinery for operational expansion.
- Funding working capital requirements.
- General corporate purposes.
Lead Managers & Registrar
- Lead Manager: Smart Horizon Capital Advisors Private Limited
- Registrar: Bigshare Services Pvt Ltd
- Phone: +91-22-6263 8200
- Email: ipo@bigshareonline.com
- Website: Bigshare Services IPO Status
Desco Infratech IPO: FAQs
1. What is the Desco Infratech IPO issue size?
The IPO issue size is ₹30.75 crores.
2. When does Desco Infratech IPO open for subscription?
The IPO opens on March 24, 2025, and closes on March 26, 2025.
3. What is the price band for Desco Infratech IPO?
The price band is ₹147 to ₹150 per share.
4. How to apply for Desco Infratech IPO?
Investors can apply via ASBA (through banks or UPI-enabled stockbrokers).
5. When will Desco Infratech IPO be listed?
The shares will be listed on BSE SME on April 1, 2025.
Final Thoughts
Desco Infratech IPO is a strong investment opportunity in the infrastructure sector. With consistent financial growth, a solid business model, and a promising expansion plan, it is a viable option for long-term investors.
Stay updated with the latest IPO details before investing!