DEE Development Engineers IPO review: 36 साल पुरानी कंपनी का IPO| Apply or Avoid ? GoodReturns

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DEE Development Engineers IPO: कल से खुलेगा DEE Development Engineers का IPO... DEE Development Engineers का फ्यूचर प्लान और बिजनेस मॉडल क्या है?  कहां होगा IPO से जुटाई रकम का इस्तेमाल? ग्रोथ को लेकर आगे क्या है प्लान? देखें कंपनी के CMD, के एल बंसल और CFO, समीर अग्रवाल से GoodReturns की बातचीत       dee development engineers limited ipo,dee development engineers ipo,dee development engineers ipo review,dee development engineers ipo information,dee development engineers ipo gmp,dee development ipo,dee development engineers upcoming ipo,dee development engineers ipo gmp today,dee development engineers ipo date,dee development engineers ipo news,dee development engineers ltd,dee development engineers ipo apply or not,dee development engineers ipo latest news     #IPOAlert #DEEDevelopmentEngineers #NewsParViews #KLBansal #SameerAgarwal #BusinessNews #Investment #StockMarket                  ~PR.147~ED.148~GR.121~

Transcript

00:00The company's tagline is,

00:02Make every customer a repeat customer.

00:04And historically, our export has been above 50% on an average.

00:09Maximum, those EPC and OEMs are our customers.

00:14Thermex is one of our oldest customers.

00:17We have never had a shortage of orders.

00:20The mood and atmosphere of the share market is very good.

00:23The market is trading at an all-time high.

00:25Along with the equity market,

00:26we are also seeing sharp action in the primary market.

00:29One after the other, IPOs are opening up.

00:31In this period, the IPO of DEE Piping Systems is also ready to open.

00:36The IPO will open from 19th June.

00:38This company is an engineering company,

00:41which provides specialized process piping solutions.

00:45In terms of installed capacity,

00:46it is the leading company in the country.

00:48We will talk about this today.

00:50The company wants to raise Rs. 418 crores through a public issue.

00:54There will be a fresh issue of Rs. 325 crores.

00:57The amount will be raised through an offer for sale.

01:01Promoters will also sell their stakes.

01:03The price band is fixed at Rs. 193 to Rs. 203.

01:07What is the company's future plan?

01:09Where will the company use the money raised through IPOs?

01:12There are many such questions.

01:13Let's get to know their answers

01:15directly from the management of DEE Piping Systems.

01:18Today, we have with us the chairman and MD of the company,

01:23KL Bansal.

01:25And the CFO of the company, Sameer Agrawal.

01:28Thank you for your time, gentlemen.

01:30First of all, I will start with Mr. Bansal.

01:34Sir, how do you feel?

01:36The IPO is ready for launch.

01:38Tell us, how do you feel?

01:41It is a very exciting thing for us.

01:44It is the first thing.

01:46Since we are the first generation entrepreneurs,

01:49we are seeing this day today.

01:51It is a great feeling and a sense of achievement.

01:55Tell our viewers about your company.

01:58What does the company do?

01:59What is the business model?

02:00What are the products?

02:01Tell us about this.

02:02Sir, we basically provide piping solutions

02:07to the oil and gas sector and to the power sector.

02:11And when we talk about the oil and gas sector,

02:13there are chemicals, pharma, hydrogen, and LNG included.

02:20We cater to all these sectors.

02:23And when we talk about piping solutions,

02:26first of all, I would like to say that we do not make pipes.

02:29Our job is not to make pipes.

02:31Pipes are our raw material.

02:33We manufacture them according to the requirements of engineering.

02:41And here is its place of use.

02:44We dispatch it there.

02:46Our scope is of engineering, procurement, manufacturing, and supply.

02:52We have a history of 35-36 years.

02:56In that 35-36 years, we have always worked on profit.

03:00And historically, our export has been above 50% on an average.

03:05And in all the major countries of the world,

03:11whether they are developed countries or emerging markets,

03:14our products go to all of them.

03:16And this 50% export,

03:18it is not that it happened once or twice.

03:21Historically, our export has a 10-15 year legacy.

03:25Your company and your business is about 4 decades old.

03:29What names are included in the client list?

03:31I read your RRSP and all the details we read.

03:35I saw that there is a name for Reliance.

03:37Can you tell us more names of our viewers who are included in the client list?

03:41Mr. Sameer, this is a question for you.

03:43You are absolutely right.

03:45All the EPCs and OEMs in the oil and gas sector,

03:48or in the power sector, or in the process industry sector,

03:56maximum those EPCs and OEMs are our customers.

04:01Just to name a few,

04:03Japan Gas Corporation,

04:06Thermex,

04:08Main Diesel,

04:10John Corporal,

04:12Nixon,

04:14HMEL,

04:16Reliance.

04:18So all these are our customers.

04:20If you pay attention to one more thing,

04:22all these customers are big companies,

04:27in the top 500 or top 1000 companies in the world.

04:31What kind of relations do you have with them?

04:34For example, if I talk about Reliance,

04:36which is the oldest in the client list,

04:38which is associated with you,

04:40what kind of relations do you have with them?

04:42How is your business with them?

04:44What is the size of the business?

04:46If you can tell us in detail.

04:48Sir, for this, I would like to tell you that

04:50Thermex is our oldest customer.

04:53And with that,

04:55the age of our company is the same as our relationship with them.

04:59And year after year,

05:01practically,

05:03I will say more than 80-90% of their jobs,

05:06we are doing it single-handedly.

05:09And in the same way,

05:11all our customers,

05:13no one's relationship is less than 10-15 years.

05:16Whoever we acquired before that,

05:18which we do not acquire 1-2 customers every year.

05:22But this is the tagline of our company,

05:25that every customer is a repeat customer.

05:28And we stay 100% on that line and tagline.

05:34And we achieve it.

05:36In the piping division,

05:38I see that most of your revenue comes from operations.

05:42What is your outlook on that, sir?

05:44What are your concerns?

05:45What is your outlook?

05:46What would you like to say, Sameer sir?

05:47If I talk about the Government of India in particular,

05:50on the capex cycle,

05:52or on infrastructure development,

05:54how much focus they have,

05:57they have never been so focused.

05:59And in the same way,

06:01as the government has announced

06:03that new power plants of 80 gigawatts are coming,

06:05so this is like a windfall for us,

06:09that so much work is being created for us,

06:11because we are a very limited player in that.

06:14Whoever works in that sector,

06:16and out of the three players we have selected,

06:18one of them is our name.

06:20So this is a very big opportunity for us in the coming years.

06:24And in the same way,

06:25if we talk about the export market,

06:27there is no problem with the capex cycle anywhere.

06:32Because the energy needs are increasing day by day in the world.

06:37So whether it is the LNG sector,

06:39whether it is the hydrogen sector,

06:41whether it is the gas-based power plants,

06:43as Sameer said,

06:44we work on John Cochrane,

06:46we work on Newton-Richardson.

06:48All these people make HRSG-based power plants,

06:51and all these are our customers.

06:53And we do something or the other for them every year.

06:57And I don't consider it a challenge in any way

07:01to book an order in the next 5-6 years.

07:05And it has always been our history

07:07that we never had a shortage of orders.

07:11If we had a shortage,

07:13it was only a shortage of capacity.

07:15So we slowly built that capacity,

07:18because we are first generation entrepreneurs.

07:20We were 100% dependent on bank finances,

07:23and we spent according to the amount of finance we were getting.

07:27Sameer sir, I have a question.

07:29You have 7 manufacturing plants in India,

07:32and in Bangkok and other countries.

07:35I wanted to know,

07:37what is the current capacity of these plants?

07:41So sir, if I talk about process piping solutions,

07:46at present,

07:48in India,

07:50our capacity,

07:52as on date,

07:54is 53,000 metric tons.

07:57And in Thailand,

07:59that capacity is 14,500 metric tons.

08:04So this is our process piping solutions.

08:09We also manufacture windmill turbine towers.

08:18Our heavy fabrication unit,

08:20which is situated in Gujarat,

08:22has a capacity of 36,000 metric tons.

08:26Sir, where is the demand coming from?

08:28Mostly from Italy, America,

08:30or from which country?

08:33What kind of clients are you getting?

08:35Please tell us about this.

08:37Sir, our client base is mostly in North America,

08:40Europe, and Japan.

08:42And further, our client base is all over the world.

08:45Let us say, we are working for OEMs,

08:49we are working for Japan Gas Corporation,

08:53or we are working for Nutter Ericsson,

08:55or we are working for John Cockrell.

08:57They will be having the projects spread across the world.

09:00Some will come from the Middle East,

09:01some from Africa,

09:02some from USA,

09:03some from North America, Canada.

09:05So we work for them,

09:07for the whole world.

09:08But the major order of inflows,

09:10come from our mostly developed countries,

09:13like North America, Europe, and Japan.

09:16Now, let us talk about IPO.

09:19The IPO fund that you are raising,

09:21where is it going to be used?

09:23Is anything new going to happen in the company?

09:25Please tell me about this, sir.

09:27The total IPO size is 418 crores.

09:32It has two components.

09:34One is the primary component, which is 325 crores.

09:38The second component is the OFS, which is 93 crores.

09:42The 325 crores that we are bringing in the company,

09:46the prime objective of that is

09:50to reduce our debt by 175 crores.

09:55We are raising 75 crores as additional working capital.

10:01And the remaining 75 crores,

10:04that is for general corporate purposes.

10:07So how much debt is there in the company,

10:09and how aggressive is the company towards getting debt-free?

10:12And how long will this debt last?

10:14Sir, let me tell you the first thing.

10:17Our total debt on group level is 400 crores.

10:21And I am saying around, not precisely.

10:25And out of that, we will repay 175 crores.

10:31And as far as our company is concerned,

10:34going forward, how will the debt be,

10:37because we work in projects,

10:40we need bank guarantees and LCs.

10:44So we will have bank facilities,

10:48but definitely with the profits coming up,

10:51we will keep on reducing our debt.

10:54Other than, if there is any opportunity,

10:58if there is a good opportunity for investment,

11:01in relation to our business sector,

11:04we will definitely explore that facility.

11:07So after 5 years, where are we looking at the company?

11:12If we look at it in terms of profit, income,

11:15can you give any guidance on this?

11:18I will answer your question in a different way.

11:22Our company caters to capital expenditure.

11:29And in the next 10 years,

11:33our company will have golden moments.

11:37Because not only in India,

11:40but also across the globe,

11:43the capital cycle is running.

11:45And what you just saw,

11:48that there is a war in Russia and Ukraine,

11:52or more wars are taking place,

11:54because of that, every country

11:57wants to make itself energy efficient.

12:01And wants to strengthen its manufacturing process.

12:06So in the next 10 years,

12:09there are so many opportunities,

12:11that I can't describe it in words.

12:14You can't describe it in words,

12:16but it is a good outlook,

12:18because the future of demand is looking good.

12:21Thank you so much, sir.

12:23Best wishes to both of you and the team.

12:27Thank you so much, sir.

12:28Thank you, sir. Thank you.

12:29Thanks a lot.

12:30Very nice talking to you.

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