New Delhi, Apr 1 (KNN) Shares of infrastructure company Desco Infratech made a positive debut on the BSE SME on Tuesday, April 1, 2025. The stock listed at Rs 160 per share, marking a 6.67 per cent premium over the issue price of Rs 150 per share.
The listing performance exceeded grey market expectations, where shares were trading at approximately Rs 155.50 prior to the official market debut.
The company’s initial public offering (IPO) comprised a fresh issue of 2.05 million equity shares with no offer for sale component, raising a total of Rs 30.75 crore.
Before the public issue, Desco Infratech secured Rs 8.65 crore from anchor investors by allocating 0.57 million shares at the upper price band of Rs 150 per share.
The public subscription period ran from March 24 to March 26, 2025, with a price band of Rs 147-150 per share and a minimum lot size of 1,000 shares. Investor response was exceptionally strong, with the issue being oversubscribed 77.74 times overall.
Non-institutional investors showed the highest interest, oversubscribing their portion by 171.28 times, while retail investors and qualified institutional buyers oversubscribed their quotas by 50.63 times and 20.76 times respectively.
Following the finalization of the share allotment on March 28, 2025, the company confirmed the issue price at Rs 150 per share.
According to the red herring prospectus, Desco Infratech plans to utilize the raised capital for establishing a corporate office in Surat, Gujarat, purchasing machinery, meeting working capital requirements, and general corporate purposes.
Bigshare Services served as the registrar for the issue, while Smart Horizon Capital Advisors acted as the sole book-running lead manager.
Incorporated in January 2011, Desco Infratech specializes in providing infrastructure and maintenance services to city gas distribution divisions in India, focusing on pipeline laying, installation, testing, and commissioning for Piped Natural Gas used by domestic and commercial consumers.
The company has also diversified into power distribution, water distribution, and renewable energy sectors.
For the fiscal year 2024, Desco Infratech reported a total revenue of Rs 29.49 crore, a slight increase from Rs 29.28 crore in FY2023.
However, the company’s profit after tax showed significant growth, rising 181 per cent to Rs 3.45 crore in FY2024 from Rs 1.22 crore in the previous fiscal year.
(KNN Bureau)
