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Desco Infratech Limited SME IPO: A New Investment Opportunity in Infrastructure
As Desco Infratech Limited gets ready to release its SME IPO, the dynamic scene of the SMEs is seeing a hopeful addition. This IPO is becoming a possible game changer in the infrastructure sector as investors' taste for quality, growth-oriented prospects in niche areas grows.
Company Overview
Desco Infratech Limited has developed a niche in the infrastructure space. The organization has developed a reputation for providing quality projects and is known for its creative approach to solve infrastructure issues.
Emphasizing sustainable development and effective project management, Desco Infratech is poised to use the money acquired through the IPO to increase its operating footprint, modernize equipment, and tackle fresh problems in a changing market.
Vital IPO knowledge
Desco Infratech Limited's SME IPO is attracting notice for a number of reasons like:
Choosing a SMEs listing helps the business to attract a certain investor base. SMEs IPOs are meant to provide retail and institutional investors an opportunity to invest in future growth stories as well as a stage for rising businesses to obtain finance.
Use of Funds: The funds raised is planned to be utilized towards corporate expansion, technology advancements, and strengthening its market position. This strategic emphasis underscores the company's aim to improve its competitive edge in the sector and scale down activities.
Investor Attraction: With a well-structured offer, Desco Infratech Limited SME IPO is positioned to attract investors looking for exposure in the infrastructure market. The IPO is also expected to benefit from favorable market conditions as investors are increasingly willing to financing companies with clear development trajectories and sound operational frameworks.
Initiatives in Strategic Growth
The expansion road map of Desco Infratech Limited revolves on a small number of important projects meant to propel long-term success. Desco Infratech Limited will make significant investments in modern technologies, which will automate tasks and increase project efficiency, so enabling it to be competitive in an environment undergoing changes. Desco Infratech Limited will also increase operational capacity by means of new business prospects and manufacturing capacity expansion using the IPO proceeds. Emphasizing sustainable development also emphasizes its commitment to well-balanced growth with the hope that development will be made respecting environmental and regulatory aspects.
Investment Highlights
Investors are attracted to Desco Infratech Limited SME IPO due to its strong growth opportunities and stable operational history. The proven ability of the company to successfully implement infrastructure projects inspires great confidence in its capacity to carry out future projects successfully. With the resurgence of interest in the infrastructure industry triggered by government as well as private investments, the strategic position of the company is clear. Additionally, the attractive growth prospect is underscored by the intended investment of IPO proceeds in expansion and innovation, holding out high returns in the future for investors.
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Desco Infratech Limited SME IPO: A New Investment Opportunity in Infrastructure
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Desco Infratech Limited SME IPO: A New Investment Opportunity in Infrastructure Details
| Detail | Description |
|---|---|
| IPO Date | March 24, 2025 to March 26, 2025 |
| Listing Date | 1 April, 2025 |
| Face Value | ₹10 per share |
| Issue Price | ₹147 to ₹150 per share |
| Lot Size | 1,000 Shares |
| Total Issue Size | 20,50,000 shares(aggregating up to ₹30.75 Cr) |
| Fresh Issue | 20,50,000 shares(aggregating up to ₹30.75 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Shareholding pre issue | 56,26,008 shares |
| Shareholding post issue | 76,76,008 shares |
Desco Infratech Limited SME IPO: A New Investment Opportunity in Infrastructure Timeline
| Detail | Description |
|---|---|
| IPO Open Date | Mon, Mar 24, 2025 |
| IPO Close Date | Wed, Mar 26, 2025 |
| Tentative Allotment | Thu, Mar 27, 2025 |
| Initiation of Refunds | Fri, Mar 28, 2025 |
| Credit of Shares to Demat | Fri, Mar 28, 2025 |
| Tentative Listing Date | Tue, Apr 1, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 26, 2025 |
Desco Infratech Limited SME IPO: A New Investment Opportunity in Infrastructure Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| - | - | - | - |
Desco Infratech Limited SME IPO: A New Investment Opportunity in Infrastructure Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| - | - |
Competitive Strength:
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Desco Infratech Limited SME IPO: A New Investment Opportunity in Infrastructure Financial Information
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Total Borrowing | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 30 Sep 2024 | 36.12 | 22.75 | 3.38 | 22.67 | 6.82 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2024 | 23.8 | 29.49 | 3.46 | 11.99 | 4.06 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2023 | 20.65 | 29.28 | 1.23 | 5.04 | 5.81 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2022 | 11.73 | 19.92 | 0.83 | 3.85 | 3.09 | |||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 40.61% |
| ROCE | 75.97% |
| Debt/Equity | 0.34 |
| RoNW | 28.83% |
| PAT Margin | 11.76 |
| Price to Book Value | 6.22 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | ||
| P/E (x) |
Objectives of the SME IPO of Desco Infratech Limited
The principal objective of this SME IPO is to mobilize funds that will significantly drive the growth path of the company. With new fund mobilization, Desco Infratech seeks to improve operational penetration in the infrastructure business and drive business growth. Part of the funds mobilized will be deployed in the upgrade of existing technologies and adoption of innovative solutions, which are critical to enhance efficiency and remain competitive. The proceeds will also be used to increase and help in proper production capacity and allow the company to enter new strategic markets in India. The IPO is also a very beneficial and strategic initiative to improve market visibility and get a new diversified investor base, which will also help in improving investor confidence and creating a platform for long-term sustainable growth. These goals will represent the firm's desire to use the IPO as a driver for operational excellence, long term investment and broad-based growth, culminating in a more vibrant and resilient future.
Conclusion
Desco Infratech Limited’s upcoming SME IPO presents a promising avenue for investors seeking exposure to the infrastructure sector. With a clear roadmap for utilizing the raised capital to drive growth and enhance operational efficiency, the company is positioning itself as a future leader in its niche. However, as with all investment opportunities, thorough research and consultation with financial advisors are recommended to align any investment with your financial goals.
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Frequently asked Questions (FAQs )
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What are the opening and closing dates for the Desco Infratech Limited IPO?
The IPO opens on March 24, 2025, and closes on March 26, 2025.
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What is the price band set for the Desco Infratech Limited IPO?
The price band is between ₹147 and ₹150 per equity share.
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What is the minimum investment required for the IPO?
Investors must apply for a minimum lot size of 1,000 shares, amounting to an investment between ₹147,000 and ₹150,000, depending on the final issue price.
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What is the total issue size of the Desco Infratech Limited IPO?
The IPO comprises 20,50,000 equity shares, aggregating up to ₹30.75 crore.
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On which stock exchange will Desco Infratech Limited be listed?
The company will be listed on the BSE SME platform.
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When will the allotment of shares be finalized?
The allotment is expected to be finalized on March 27, 2025.
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What are the key financial metrics of Desco Infratech Limited?
As of March 31, 2024, the company's Return on Equity (ROE) is 40.61%, Return on Capital Employed (ROCE) is 75.97%, Debt-to-Equity ratio is 0.34, Return on Net Worth (RoNW) is 28.83%, and Profit After Tax (PAT) margin is 11.76%.
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How will the funds raised from the IPO be utilized?
The proceeds are intended for setting up a corporate office in Surat, purchasing machinery, meeting working capital requirements, and general corporate purposes.
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Who is the lead manager for the Desco Infratech Limited IPO?
Smart Horizon Capital Advisors Pvt. Ltd. is the lead manager for this IPO.
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How can investors check the allotment status of the IPO?
Investors can check the allotment status on the registrar's website by entering their PAN, application number, or DP Client ID. For a comprehensive understanding of the IPO, investors are advised to refer to the Red Herring Prospectus available on the BSE SME website.
