Desco Infratech makes a lukewarm debut, stock opens with a mere 7% premium at ₹160 apiece on BSE SME | Stock Market News

Desco Infratech share price made a positive debut on BSE SME today. Desco Infratech share price today opened at ₹160, which is 6.67% higher than the issue price of ₹150.

Desco Infratech IPO began accepting subscriptions on Monday, March 24, and closed on Wednesday, March 26. Desco Infratech IPO price band was set at ₹147 to ₹150 per equity share, with a face value of ₹10 each. Investors could place bids for a minimum of 1,000 equity shares, with additional bids in multiples of 1,000 shares thereafter. On the last bidding day, Desco Infratech IPO subscription status was 83.75 times, chittorgarh.com

Established in January 2011, Desco Infratech Limited is a company specializing in infrastructure, focusing on Engineering, Planning, and Construction, particularly in the sectors of City Gas Distribution, Renewable Energy, Water, and Power. The organization operates in various domains, including City Gas Distribution, Renewable Energy, Water, and Power.

The company is adept in key infrastructure projects such as city gas distribution (CGD), power transmission, water supply systems, and renewable energy initiatives. Their emphasis lies in the development and construction of pipelines, roads, bridges, and other essential structures, with a particular focus on City Gas Distribution (CGD), renewable energy projects, water management, and power infrastructure.

The firm has expanded its operations to over 55 cities across 14 states, having laid more than 4,000 kilometers of Medium-Density Polyethylene (MDPE) pipelines and supplying over 200,000 piped natural gas connections to residential, industrial, and commercial customers. Moreover, the firm provides infrastructure services that encompass the design and construction of water distribution systems, open wells, sump wells, and overhead tanks.

According to the Red Herring Prospectus (RHP), the company’s publicly listed competitors are Rudra Gas Enterprise Ltd (which has a P/E of 10.17) and Likhita Infrastructure Ltd (which has a P/E of 15.72).

Desco Infratech IPO Details

Desco Infratech IPO consists of a fresh issue of 20,50,000 equity shares, aggregating to ₹30.75 crore. There’s no offer for sale (OFS) component.

The Desco Infratech IPO has proposed to utilize the net funds raised for various objectives, which include financing capital costs for setting up a corporate office in Surat, Gujarat; acquiring machinery; addressing the company’s working capital requirements; and managing general corporate expenditures.

Smart Horizon Capital Advisors Private Limited is acting as the book-running lead manager for the Desco Infratech IPO, while Bigshare Services Pvt Ltd serves as the registrar for this offering. Rikhav Securities Limited is appointed as the market.

Desco Infratech IPO GMP today

Desco Infratech IPO GMP today is +5.5. This indicates Desco Infratech share price was trading at a premium of ₹5.5 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Desco Infratech share price is indicated at ₹155.5 apiece, which is 3.67% higher than the IPO price of ₹150.

According to the grey market activities observed over the past 15 sessions, the current GMP of ₹5.5 indicates a trend towards decline. The minimum GMP recorded is ₹0.00, whereas the maximum GMP reached is ₹20.00, as noted by investorgain.com experts.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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