Desco Infratech IPO Details
The key details of Desco Infratech’s IPO are outlined below, covering all crucial aspects from price range to investment requirements and regulatory documents.
| IPO Size | ₹30.75 Cr |
| Price Range | ₹147 - ₹150 |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
| Employee Discount | -- |
| Listing at | BSE |
| Minimum Quantity | 1000 |
| Investment (cut-off price) | ₹1,50,000 |
| Pre IPO Promotor Holding | 79.29% |
| Post IPO Promotor Holding | 58.12% |
| DHRP Draft | Click Here |
| RHP Draft | Click Here |
| Anchor Investors List | Click Here |
Desco Infratech IPO Timelines
The IPO process for Desco Infratech includes key dates for participants to know. The timeline allows for strategic planning and participation, helping investors stay informed and engaged throughout the entire process.
24/03/2025
Start Date26/03/2025
End Date28/03/2025
Refund Initiation28/03/2025
Credit of Shares to Demat Ac01/04/2025
Listing DateDesco Infratech IPO Lot Size
The Desco Infratech IPO has a fixed lot size of 1,000 shares, at an upper price band of ₹150 per share, requiring ₹150,000 per lot for retail investors. For HNI investors, the minimum application is 2,000 shares (2 lots) amounting to ₹300,000.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1000 | ₹1,50,000 |
| Retail Maximum | 1 | 1000 | ₹1,50,000 |
| HNI Minimum | 2 | 2000 | ₹3,00,000 |
Desco Infratech IPO Subscription Status
The subscription status for Desco Infratech IPO shows market demand across different investor categories, providing valuable insights into the offering’s performance. You can track real-time subscription data below.
| QIB | NII | Retail | EMP | Total |
|---|---|---|---|---|
| 28.76x | 233.26x | 50.62x | -- | 83.75x |
IPO Performance on Listing Day
On the listing day (April 1, 2025), Desco Infratech made a positive debut on the stock exchange. The stock opened at ₹160, delivering a decent premium of 6.7% over its issue price of ₹150. Throughout the trading session, the stock showed steady upward momentum, climbing to a high of ₹168 while maintaining support at its opening price. The shares concluded their first trading day at ₹168, securing a healthy gain of 12% over the issue price, reflecting solid investor confidence in this infrastructure technology company.RetryClaude can make mistakes. Please double-check responses.
| Opening Price | Closing Price | Day High | Day Low |
|---|---|---|---|
| ₹160.00 | ₹168.00 | ₹168.00 | ₹160.00 |
Desco Infratech IPO Company Financials
Desco Infratech IPO reports robust performance in FY2024 with Total Income of ₹29.49 crores, managing expenses at ₹24.52 crores, and achieving a strong PAT (Profit After Tax) of ₹3.46 crores, demonstrating significant growth potential ahead of its public offering.
| Year | Total Income | Total Expense | PAT |
|---|---|---|---|
| FY 2022 | ₹19.92 | ₹18.71 | ₹0.83 |
| FY 2023 | ₹29.28 | ₹27.54 | ₹1.23 |
| FY 2024 | ₹29.49 | ₹24.52 | ₹3.46 |
| FY 2025 (6 M) | ₹22.75 | ₹18.33 | ₹3.38 |
About Company
Desco Infratech Limited, incorporated in January 2011, is an infrastructure company specializing in Engineering, Planning, and Construction. The company operates across several key sectors, including City Gas Distribution (CGD), Renewable Energy, Water, and Power. It focuses on critical infrastructure projects such as developing pipelines, roads, bridges, and energy solutions, with a strong emphasis on CGD, renewable energy, and water management systems.
With operations spanning over 55 cities in 14 states, Desco Infratech has laid more than 4,000 kilometers of Medium-Density Polyethylene (MDPE) pipelines and provided over 200,000 piped natural gas connections. In addition, the company offers services related to the construction of water distribution networks, open wells, sump wells, and overhead tanks. As of December 31, 2024, Desco Infratech employed 234 professionals across various locations, supporting its diverse range of infrastructure projects.
| Incorporation Date | Sector | Managing Director |
|---|---|---|
| 2011 | Infrastructure | Pankaj Pruthu Desai |
Know Before Investing
Desco Infratech IPO Strengths
- Desco Infratech operates across multiple sectors, including city gas distribution, renewable energy, water management, and power infrastructure, allowing it to mitigate risks associated with dependence on a single market.
- With over a decade of experience in critical infrastructure projects, the company has developed expertise in executing complex projects efficiently and effectively.
- The company has built a presence in over 55 cities across 14 states in India, enhancing its market reach and customer base.
- Desco Infratech is committed to sustainable energy solutions, particularly in renewable energy and clean gas distribution, aligning with global trends toward sustainability.
- The company employs a systematic approach to project execution, encompassing design, installation, testing, and documentation, ensuring high-quality outcomes and customer satisfaction.
- Direct relationships with suppliers enable Desco Infratech to secure quality materials and services at competitive prices, enhancing operational efficiency.
- The Indian government’s focus on infrastructure development and clean energy initiatives provides a favorable environment for growth in the company’s sectors.
Desco Infratech IPO Risks
- The infrastructure sector is subject to various regulations and compliance requirements, which can lead to increased operational costs and delays in project execution.
- Acquiring land for infrastructure projects in India can be a complex and time-consuming process, often leading to delays and increased costs due to legal disputes or community opposition.
- The company may face challenges in securing adequate financing for large-scale projects, particularly in a competitive environment where public funding is limited.
- The infrastructure sector is highly competitive, with numerous players vying for contracts. This competition can lead to pricing pressures and reduced profit margins.
- Infrastructure projects are susceptible to operational risks such as project delays, cost overruns, and logistical challenges, which can impact profitability and project viability.
- Economic fluctuations can affect government spending on infrastructure projects, leading to reduced opportunities for companies like Desco Infratech.
- A significant portion of revenue may come from government contracts, making the company vulnerable to changes in government policies or budget allocations.
Swot Analysis for Desco Infratech IPO
Strengths
Expertise in gas and power, Focus on sustainability, Strong execution track record
Weaknesses
Dependence on government contracts, Limited geographical reach, Capital-intensive projects
Opportunities
Demand for energy solutions, Expansion into new markets, Government infrastructure spending
Threats
Intense competition, Regulatory changes, Economic downturns
Company Details
Desco Infratech Limited
A-703, Swastik Universal, Next to Valentine Theatre, Dumas Road, Umra, Surat, Gujarat – 395007 India.
Phone: +91 7574 999 09
Email: investors@descoinfra.co.in
Website: https://www.descoinfra.co.in/
IPO Registar Details
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/IPO_Status.html
FAQs
The key objectives of Desco Infratech IPO are:
- Funding of capital expenditure requirements towards setting up of corporate office in Surat, Gujarat.
- Funding of capital expenditure requirements towards purchase of machineries.
- Funding Working Capital Requirements of the Company.
- General corporate purposes.
Smart Horizon Capital Advisors Private Limited is the book-running lead managers for the Desco Infratech IPO.
Desco Infratech’s growth potential is supported by its financial performance, with revenue increasing from ₹19.85 crore in FY 2022 to ₹29.49 crore in FY 2024, alongside a significant rise in net income. The company’s growth strategy includes expanding services in infrastructure development, particularly in gas and power sectors, which aligns with India’s growing infrastructure needs. However, risk factors include depends on project timelines and potential regulatory challenges.
The issue price for the Desco Infratech IPO is set between ₹147 and ₹150 per share.
To invest in one lot of Desco Infratech IPO, you need ₹1,47,000 at the lower price band (₹147 per share) or ₹1,50,000 at the upper price band (₹150 per share) for a lot size of 1000 shares.
Desco Infratech IPO shares are scheduled to be listed on the Bombay Stock Exchange (BSE) on April 1, 2025.
Refund/unblocking of funds for Desco Infratech IPO will begin on March 28, 2025. ASBA/UPI blocks will be removed within 1 working day.
You can sell shares your Desco Infratech IPO shares on listing day (April 1, 2025) after they are credited to your demat account. If you want to sell in the pre-open market, the timing for that session is from 9:00 AM to 9:15 AM. Otherwise, you can sell after 10:00 AM during regular trading hours.