Introduction
The subscription period for the Desco Infratech IPO starts on March 24, 2025, and closes on March 26, 2025. On Thursday, March 27, 2025, the allocation for the Desco Infratech IPO is anticipated to be finalized. The proposed listing date for the Desco Infratech IPO is set for Tuesday, April 1, 2025, on the BSE SME.
With the company set to raise ₹30.75 crores through this IPO, investors are keen to understand the Desco Infratech IPO details before making investment decisions. This guide provides a deep dive into the company, its financials, IPO specifics, and expert insights to help you make an informed choice.
Desco Infratech IPO Details: Key Highlights
IPO Dates and Timeline
The Desco Infratech IPO opens for subscription on March 24, 2025, and closes on March 26, 2025. The allotment is expected to be finalized by March 27, 2025, with shares tentatively listed on BSE SME by April 1, 2025.
| Key Detail | Value |
|---|---|
| IPO Date | March 24, 2025 to March 26, 2025 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹147 to ₹150 per share |
| Lot Size | 1,000 Shares |
| Total Issue Size | 20,50,000 shares (₹30.75 Cr) |
| Fresh Issue | 20,50,000 shares (₹30.75 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Share Holding Pre Issue | 56,26,008 shares |
| Share Holding Post Issue | 76,76,008 shares |
| Market Maker Portion | 1,07,000 shares (Rikhav Securities Limited) |
| Minimum Investment (Retail) | ₹1,47,000 |
| HNI Investment | ₹3,00,000 (2 lots of 2,000 shares) |
IPO Date
March 24 - 26, 2025
Price Band
₹147 - ₹150
Lot Size
1,000 Shares
Total Issue Size
₹30.75 Cr
Min Investment (Retail)
₹1,47,000
HNI Investmentc (Min)
₹3,00,000
Objectives of the IPO
The company plans to utilize the IPO proceeds for:
- Setting up a corporate office in Surat, Gujarat (₹10.43 crores).
- Purchasing machinery (₹16.8 crores).
- Funding working capital requirements (₹180 crores).
- General corporate purposes.
Financial Performance and Key Ratios
Revenue and Profitability Trends
Desco Infratech has shown consistent growth in revenue and profitability. Key financial highlights include:
| Period Ended | Revenue (₹ Cr) | Profit After Tax (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|
| 30 Sep 2024 | 22.75 | 3.38 | 22.67 |
| 31 Mar 2024 | 29.49 | 3.46 | 11.99 |
| 31 Mar 2023 | 29.28 | 1.23 | 5.04 |
Key Financial Metrics
- Return on Equity (ROE): 40.61%
- Return on Capital Employed (ROCE): 75.97%
- Debt-to-Equity Ratio: 0.34
- Price-to-Book Value: 6.22
Expert Opinion and Analyst Insights
Expert Analysis
Given the company’s strong market position and potential for expansion, industry experts think the Desco Infratech IPO presents a great opportunity. Nonetheless, investors ought to take into account the following:
- Upsides: : Effective operations are indicated by high ROE and ROCE.
- Risks: Dependency on government contracts and regulatory approvals.
Case Study: Peer Comparison
| Company Name | EPS (₹) | P/E Ratio | ROE (%) |
|---|---|---|---|
| Desco Infratech | 6.95 | 24.4 | 40.61% |
| Rudra Gas Enterprise | 7.44 | 10.17 | 18.01% |
| Likhita Infrastructure | 16.74 | 15.72 | 21.29% |
Key Financial Metrics
- Return on Equity (ROE): 40.61%
- Return on Capital Employed (ROCE): 75.97%
- Debt-to-Equity Ratio: 0.34
- Price-to-Book Value: 6.22
How to Apply for the Desco Infratech Limited IPO
- Through Demat Account: Log in to your trading platform (e.g., Zerodha, Groww) and apply under the IPO section.
- Offline Application: Submit the ASBA form at your bank branch.
Understanding the ASBA Process
The application supported by the blocked amount system known as ASBA serves as the main method through which Indian investors apply to IPOs. The ASBA process blocks necessary funds within your bank account before deducting them only during share allotment.
Steps to Apply Using ASBA (Online Method)
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1. Login to Your Bank’s Net Banking Portal
Access the ASBA section enabled by most major banking institutions, which allows users to apply for IPOs. Navigate to the ‘Invest in IPO’ section on your screen.
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2. Access Active IPOs
From the ASBA section, you can view all active IPOs and select the NSDL IPO.
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3. Enter Your UPI ID and Details
If applying through brokers, link your UPI ID to simplify the transaction process. Specify both the number of shares and your proposed offer price.
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4. Determine the Number of Shares
Decide how many shares you want to apply for. Retail investors should adhere to the one-lot limit up to a maximum of 13 lots.
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5. Confirm and Submit the Application
After verifying all details, the bank’s system will place a reserve on the necessary funds in your account.
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6. Approve UPI Mandate
When using UPI, ensure you verify the payment request within your UPI application.
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7. Wait for Allotment Confirmation
Once the IPO closes, the allotted shares will be credited to your Demat account as per the allotment process.
FAQs
What is the Desco Infratech IPO price band?
When is the Desco Infratech IPO allotment date?
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What is the minimum investment for retail investors?
What are the risks of investing in Desco Infratech IPO?
Conclusion
The Desco Infratech IPO presents a lucrative opportunity for investors seeking exposure to the infrastructure sector. With strong financials, experienced management, and a clear growth strategy, the company is well-positioned for future success. However, investors should carefully evaluate market conditions and risk factors before investing.