Desco Infratech IPO is set to raise ₹30.75 crore through a book-built issue, consisting entirely of a fresh issue of 20.50 lakh shares. The IPO opened for subscription on March 24, 2025, and is closing soon on March 26, 2025. The allotment is expected to be finalised on March 27, 2025, with the company making its debut on the BSE SME platform on April 1, 2025.
The IPO price band is set at ₹147 to ₹150 per share. Retail investors need a minimum investment of ₹1,47,000 for one lot (1,000 shares), but bidding at the cutoff price of ₹150 per share ensures better chances of allotment, requiring an investment of ₹1,50,000. High Net-worth Individuals (HNIs) must apply for at least two lots (2,000 shares), amounting to ₹3,00,000.
Smart Horizon Capital Advisors Private Limited is managing the IPO as the book-running lead manager, while Bigshare Services Private Limited is the registrar. Rikhav Securities Limited is the market maker. Investors are advised to refer to the Red Herring Prospectus (RHP) for detailed information.
Industry Outlook
- India’s infrastructure sector is set to benefit from an 11.1% increase in capital investment outlay to ₹11.11 lakh crore (US$ 133.86 billion) in the Interim Budget 2024-25. This investment is expected to enhance transportation, electricity, and urban development, creating significant opportunities for companies like Desco Infratech Limited, which specialises in infrastructure projects.
- The National Infrastructure Pipeline (NIP) now includes 9,142 projects, with 2,476 under development, valued at US$ 1.9 trillion. With nearly half of these projects in the transportation sector, Desco Infratech Limited stands to gain from increased contracts in infrastructure construction, contributing to India’s goal of becoming a US$ 5 trillion economy by 2025.
Desco Infratech IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funds will be used to establish a corporate office in Surat, Gujarat, enhancing operational efficiency and business growth.
- Investment in new machinery will improve project execution capabilities and boost productivity.
- Funds will be allocated toward strengthening working capital requirements.
- The remaining funds will be used for general corporate purposes.
About Desco Infratech Limited
Desco Infratech Limited, originally incorporated on January 19, 2011, as Desco Infratech Private Limited, transitioned into a public limited company in 2024. Based in Gujarat, the company specialises in infrastructure and maintenance services for city gas distribution networks across India. Its expertise includes pipeline laying, installation, testing, erection, and commissioning of Piped Natural Gas (PNG) systems for domestic and commercial users.
The company provides Operation and Maintenance (O&M) services for both underground and above-ground gas pipelines, using advanced techniques such as lock pressure and leak detection tests to prevent gas leaks. It also deploys emergency response vehicles with dedicated teams to handle potential hazards, ensuring safety and uninterrupted gas supply.
Expanding its service portfolio, Desco Infratech Limited entered the power division, offering installation and commissioning of Low Tension (LT) and High Tension (HT) cables. It secured its first power-related project in Surat in April 2023, focusing on cable connectivity and traffic signal infrastructure. Additionally, the company ventured into water distribution projects, managing the construction of wells, overhead tanks, and HDPE pipelines.
A recent milestone includes securing a renewable energy project at the Gujarat Hybrid Renewable Energy Park, involving the installation of reinforced concrete piles and solar modules. With projects spanning Gujarat, Haryana, Uttar Pradesh, and Punjab, the company continues to grow under the leadership of experienced professionals, maintaining high-quality standards backed by ISO 9001:2015 certification.
How To Check the Allotment Status of Desco Infratech IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for the Desco Infratech IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Desco Infratech IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Desco Infratech IPO
Registered office: A-703, Swastik Universal, Next to Valentine Theatre,
Dumas Road, Umra, Surat, Gujarat- 395007 India
Phone: +91 7574 999 097
E-mail: investors@descoinfra.co.in
Desco Infratech IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares |
Not more than 50.00% of the Net Issue |
|
Retail Shares |
Not less than 35.00% of the Net Issue |
|
NII (HNI) Shares |
Not more than 15% of the Net Issue |
Desco Infratech IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
1,000 |
₹1,47,000 |
|
Retail (Max) |
1 |
1,000 |
₹1,50,000 |
|
HNI (Min) |
2 |
2,000 |
₹3,00,000 |
Desco Infratech IPO Anchor Investors Details
|
Bid Date |
March 21, 2025 |
|
Shares Offered |
3,86,000 |
|
Anchor Portion Size (In Cr.) |
5.79 |
|
Anchor lock-in period for 50% of shares ends in 30 days |
April 26, 2025 |
|
Anchor lock-in period for remaining shares ends in 90 days |
June 25, 2025 |
Desco Infratech IPO Promoter Holding
Ms. Indiraben Pruthubhai Desai, Mr. Pankaj Pruthu Desai, Ms Hina Pankaj Desai, Mr. Malhar P Desai and Mr Samarth Pankaj Desai are the promoters of the company.
|
Share Holding Pre-Issue |
79.29% |
|
Share Holding Post Issue |
58.12% |
Note: Equity dilution will be determined by subtracting the Share Holding Post Issue from the Share Holding Pre Issue.
Key Performance Indicators for Desco Infratech IPO
|
KPI |
Value |
|
RoE (%) |
40.61 |
|
RoCE (%) |
75.97 |
|
Debt/Equity |
0.34 |
|
PAT Margin |
11.76 |
Desco Infratech IPO Prospectus
Desco Infratech IPO Registrar and Lead Managers
Desco Infratech IPO Lead Managers
- Smart Horizon Capital Advisors Private Limited
Registrar for Desco Infratech IPO
Bigshare Services Private Limited
- Contact Number:+91-22-6263 8200
- Email Address: ipo@bigshareonline.com
Desco InfratechIPO Registrar
Financial Performance of Desco Infratech Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 2,939.31 | 2,922.21 |
| Profit After Tax (PAT) (in ₹ lakh) | 345.80 | 122.72 |
| EPS (Earnings per Share in ₹) | 6.95 | 2.73 |
| Total Borrowings (in ₹ lakh) | 406.37 | 580.99 |
| Return on equity (in times) | 40.61 | 27.62 |
| Debt to Equity Ratio (times) | 0.34 | 1.15 |
| EBITDA (in ₹ lakh) | 555.90 | 219.32 |
Know before investing
Strengths
8Over a decade of expertise in city gas distribution projects.
Direct supplier relationships reduce procurement costs and improve material quality.
Strong leadership with experienced promoters drive business growth.
Structured SOPs ensure efficiency, safety, and regulatory compliance.
Strict adherence to safety standards with regular training and audits.
Expanded into water distribution and renewable energy projects.
Growing demand for pipeline O&M services boosts business opportunities.
Focus on working capital efficiency to enhance financial stability.
Risks
8Desco Infratech faces legal risks from ongoing litigation impacting business.
Failure to secure new contracts may affect financial stability.
Heavy reliance on key customers poses revenue loss risks.
Seasonal variations and extreme weather affect operational efficiency.
Negative cash flows raise concerns about financial sustainability.
Geographic concentration exposes the company to regional business risks.
Related party transactions with promoters may lead to conflicts of interest.
Delays in ₹168.04 lakh machinery procurement may impact profitability.
Peer Comparison of Desco Infratech Limited
| Company Name | EPS (Basic) | RoNW (%) | NAV (per share in ₹) | P/E (x) |
|---|---|---|---|---|
| Desco Infratech Limited | 6.95 | 28.83 | 24.1 | - |
| Rudra Gas Enterprise Limited | 7.44 | 18.01 | 31.49 | 10.17 |
| Likhita Infrastructure Limited | 16.74 | 21.29 | 78.62 | 15.72 |
