Desco Infratech Limited, operating in the infrastructure sector, is set to debut in the market with an IPO worth ₹30.75 crores, consisting of a fresh issue of 20.50 lakh shares. The subscription period runs from March 24 to March 27, 2025, with the company gearing up for its listing on the BSE SME platform on April 1, 2025.
The IPO offers equity shares with a face value of ₹10, priced within a band of ₹147 to ₹150 per share, with a lot size of 1,000 shares. Retail investors can participate with a minimum investment of ₹1,47,000 (1 lot), while High Net-worth Individuals (HNI) can enter with a minimum subscription of ₹3,00,000 (2 lots). The company has planned a structured post-subscription process, with share allotment expected on March 27, 2025, leading up to its official market debut on April 1, 2025. As a key player in the infrastructure space, the company offers investors a chance to be part of India's expanding energy and construction ecosystem.
Desco Infratech Limited IPO is a fundraise worth ₹30.75 crores comprising purely of a fresh issue with 1,000 shares reserved for the market maker Rikhav Securities Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from March 24, 2025, to March 26, 2025, providing an opportunity for investors looking to gain a stake in the biofuels space.
| Desco Infratech IPO date | March 24, 2025 - March 26, 2025 |
| Price band | ₹147 to ₹150 per share |
| Face value | ₹10 per share |
| Lot size | 1,000 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 20,50,000 shares amounting to ₹30.75 crores |
| Total issue size | 20,50,000 shares amounting to ₹30.75 crores |
| Listing at | BSE SME |
| Market maker portion | 1,07,000 - Rikhav Securities Ltd |
| Shareholding post-issue | 76,76,008 shares |
| Shareholding pre-issue | 56,26,008 shares |
The Desco Infratech Limited IPO opens for subscription on March 24, 2025, and closes on March 26, 2025, with allotment scheduled for March 27, 2025.
| IPO open date | March 24, 2025 (Monday) |
| IPO close date | March 26, 2025 (Wednesday) |
| Basis of allotment | March 27, 2025 (Thursday) |
| Initiation of refunds | March 28, 2025 (Friday) |
| Credit of shares to Demat account | March 28, 2025 (Friday) |
| Listing date on BSE SME | April 1, 2025 (Tuesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on March 26, 2025 (Wednesday) |
Incorporated in January 2011, Desco Infratech Limited is a leading infrastructure company specializing in engineering, planning, and construction across City Gas Distribution (CGD), Renewable Energy, Water, and Power sectors. The company has a significant presence across 55+ cities in 14 states, having laid over 4,000 km of MDPE pipelines and delivering more than 200,000 piped natural gas connections to residential, industrial, and commercial establishments.
Beyond CGD, the company undertakes critical infrastructure projects, including power transmission, water supply systems, and renewable energy solutions. It also provides specialized services in designing and constructing water distribution networks, open wells, sump wells, and overhead tanks. As of December 31, 2024, Desco Infratech employed 234 professionals across various locations.
Desco Infratech Limited plans to utilize the net proceeds from its IPO to support key business objectives, including ₹10.43 million for setting up a corporate office in Surat, Gujarat, and ₹16.8 million for acquiring essential machinery. Additionally, ₹180 million will be allocated towards meeting the company's working capital requirements, while the remaining funds will be used for general corporate purposes.
As of July 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 40.61%, Return on Capital Employed (ROCE) at 75.97% and a Debt-to-Equity ratio of 0.34. The Return on Net-Worth (RoNW) stands at 28.83%, and the PAT Margin was 11.76. The Price to Book Value was 6.22. The company’s market capitalisation is ₹115.14 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 22.75 | 29.49 | 29.28 | 19.92 |
| Assets | 36.12 | 23.80 | 20.65 | 11.73 |
| Net Worth | 22.67 | 11.99 | 5.04 | 3.85 |
| Profit After Tax | 3.38 | 3.46 | 1.23 | 0.83 |
| Reserves & Surplus | 17.04 | 11.72 | 4.79 | 3.60 |
| Total Borrowing | 6.82 | 4.06 | 5.81 | 3.09 |
Amount in ₹ crores
The pre-IPO EPS is at ₹6.15 while the post-IPO EPS will be ₹8.81. Similarly, the pre-IPO Price to Earnings ratio is 24.4 and will become 17.03 post-IPO.
Desco Infratech Limited brings extensive experience in city gas distribution and maintenance services, backed by a seasoned team of promoters and management. The company maintains direct relationships with suppliers, ensuring a seamless supply chain. Its operations are driven by well-defined Standard Operating Procedures (SOPs), which are crucial for city gas distribution contracting services.
Additionally, the company prioritizes strict adherence to safety and compliance standards, reinforcing its commitment to operational excellence and regulatory requirements.
Desco Infratech Limited operates in a highly regulated environment, requiring compliance with various state and central regulations, which may pose challenges and increase operational costs. Additionally, the company faces project execution risks, where delays or cost overruns in infrastructure projects could directly impact profitability. The competitive landscape also presents a challenge, as the company competes with well-established players in the city gas distribution and infrastructure sectors.
Furthermore, the company’s revenue is heavily dependent on government contracts, making it vulnerable to policy changes and fluctuations in tender allocations. Financial risks, including interest rate fluctuations and rising financing costs, could also impact profitability. Additionally, operational efficiency risks, such as supply chain disruptions or inefficiencies in project execution, may affect the company’s ability to sustain growth and maintain market competitiveness.
Investing early in Desco Infratech Limited’s IPO offers an opportunity to be part of its growth in the infrastructure sector. However, potential investors should evaluate key factors such as the company’s operational performance, financial stability, industry outlook, and expansion strategy. It is essential to align this investment with personal financial goals and risk tolerance. Reviewing the offer document and seeking professional guidance can help in making an informed investment decision.
What is the Desco Infratech Limited IPO?
The Desco Infratech Limited IPO is an BSE SME offering consisting of 20.50 lakh equity shares with a face value of ₹10, aiming to raise ₹20.50 crore. The price band has been set between ₹147 to ₹150 per share, with a minimum order quantity of 1000 shares. This IPO will be open for subscription from March 24, 2025, to March 26, 2025. Smart Horizon Capital Advisors Private Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar while Rikhav Securities Limited is the market maker.
When will the Desco Infratech IPO open?
The Desco Infratech Limited IPO will open for subscription on March 24, 2025, and will close on March 26, 2025.
When is the Desco Infratech IPO listing date?
The tentative listing date for the Desco Infratech Limited IPO is Tuesday, April 1, 2025.
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