Desco Infratech Limited, a Gujarat-based company specializing in infrastructure development and maintenance services, is set to launch its IPO to raise approximately ₹30.75 crores. The IPO will open for subscription on March 24, 2025, with a price band of ₹147 to ₹150 per share. Desco Infratech focuses on providing services for city gas distribution networks, including the installation and maintenance of pipelines and power infrastructure.
₹5
₹150
₹160.00
Expert Opinions
The market sentiment surrounding Desco Infratech IPO is cautiously optimistic, reflecting the growing demand for infrastructure services in India. The company’s strengths include its expertise in city gas distribution and a solid reputation for quality and compliance. However, it faces risks such as project delays and high competition within the sector. For FY 2024, Desco Infratech reported a Return on Equity (ROE) of 40.61%, a Return on Capital Employed (ROCE) of 75.97%, and a Net Asset Value (NAV) of ₹24.10.
The long-term investment perspective appears favorable, as the company is well-positioned to benefit from government initiatives aimed at enhancing infrastructure. While short-term investors may encounter volatility, long-term investors could see substantial growth as the company expands its operations and capitalizes on increasing infrastructure spending in the country.
Investor Considerations
When considering Desco Infratech IPO, investors should analyze the company’s performance and fundamentals, which show steady growth with revenues increasing from ₹29.28 crore in FY 2023 to ₹29.49 crore in FY 2024, alongside a PAT Margin of 10.75%. The sector outlook is promising, driven by increased infrastructure investment in India. For FY 2024, the IPO valuation metrics include a Price to Book Value of approximately 6.22, PAT Margin of 11.76, and a Debt/Equity ratio of 0.34.
Growth prospects are bolstered by the company’s focus on city gas distribution and expanding service offerings. However, risks include project delays and competition within the infrastructure sector. Investors should consider their investment horizon; while short-term investors may experience volatility, long-term investors could benefit from the company’s alignment with national infrastructure initiatives and its potential for sustained growth in a burgeoning market.
| Date | GMP | Trend |
|---|---|---|
| 31 Mar 2025 10.52 | ₹5 | --- |
| 29 Mar 2025 11.34 | ₹5 | --- |
| 28 Mar 2025 12.27 | ₹5 | Down |
| 27 Mar 2025 11.14 | ₹10 | --- |
| 26 Mar 2025 16.41 | ₹10 | Down |
| 25 Mar 2025 13.25 | ₹15 | Down |
| 24 Mar 2025 11.17 | ₹20 | Up |
| 22 Mar 2025 11.17 | ₹10 | --- |
| 21 Mar 2025 10.47 | ₹10 | Up |
| 20 Mar 2025 16.55 | ₹00 | --- |
FAQs
The Grey Market Premium showed good accuracy in predicting Desco Infratech’s listing performance. While the GMP of ₹5 predicted a modest premium of 3.33% over the issue price, the stock delivered a slightly higher gain of 6.67%. With a small prediction error of 3.23%, the GMP correctly captured the positive listing direction, though slightly underestimated the magnitude of gains.
Desco Infratech IPO Current GMP is ₹5.
Desco Infratech IPO Expected Returns is 3.33%.
Desco Infratech IPO estimated listing price is ₹155.