Desco Infratech IPO: Check date, price band, lot size, objectives, and key details

Major Date & Detail

Desco Infratech IPO is being touted to bring a rousing welcome to the public markets and has drawn a lot of attention from institutional investors along with retail investors as well. The application will open for subscription of the issue to the public from Monday, 24 March 2025 to Wednesday, 26 March 2025. It has an issue of equity shares worth around ₹30.75 crore via a fresh issue. The minimum investment requirement comes to ₹150,000 at the lot size of 1,000 shares and this is for all investors who wish to participate in the issue. The face value of the shares is ₹10, the issue would be on a book-built public issue basis.

Desco Infratech IPO Review: Should You Invest?

The infrastructure and engineering properties have been expanded by Desco Infratech, which is India-based. The company has diversified its portfolio to power distribution and renewable energy solutions and hence core services are pipeline laying, installation and commissioning of infrastructure projects. In India infrastructure spending is getting good support from both government efforts and private spending, and the IPO occurs at a time when such acquisitions are underway.

Funds collected through the IPO will be utilized to meet the expenses related to capital expenditure for setting up a corporate office in Surat, Gujarat, investing in new machinery, and boosting working capital along with general corporate purposes.

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The investment in Desco Infratech IPO is of interest for potential investors and one can invest in the company which can capitalize on India’s ongoing economic reforms and infrastructure drives. That being said, as with any IPO, investors should check the company’s financial performance, its growth potential and its risk factors before making an investment commitment. The industry segment, though it is also one of high growth potential, still has volatility and execution risks, say industry analysts.

Price & Valuation

The IPO is priced at ₹147 to ₹150 per share. This pricing comes on the back of a process that values the company on its strengths in the infrastructure services market already and on its future growth prospects as a company. The upper limit of ₹150 per share, fixed by the company shows that the promoters are confident of reaching out to strong investor interest.

The subscription process will be conducted using a book building process and hence will allow for dynamic pricing model based on real time demand made by clients during subscription period. However, investors will have to keep in mind the fact that the price of the shares will appreciate once it starts getting traded on the secondary market and list it on a prominent platform such as the BSE SME.

IPO Allotment & Listing

After the close of subscription period on 26 March 2025, allotment shall be finalized on or after 27 March 2025. The listing on BSE SME platform is expected in Desco Infratech and it is anticipated that the Tentative listing date will be on 1 April 2025. The subscription phase is very clear path to GO public. Allotment of the shares will strictly be as per the regulatory guidelines of SEBI, to undertake transparent and equitable distribution of the shares between Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs).

In case of oversubscription, the allotment methodology will be on proportionate allocation basis to protect the investors’ interest in there by ensuring that the fresh capital raised in the IPO is allocated in a fair manner across all categories.

How to Apply for the Desco Infratech IPO?

But, given below is the method that can be used by investors who are interested in participating in the Desco Infratech IPO through the ASBA (Application Supported by Blocked Amount) method. Investors can apply for this scheme if their bank account is linked to their trading platforms or depository participant.

Steps to apply include:

• Logging into your trading account after connecting to your bank’s online portal or at the broker’s designated website.
• On the IPO application section, subsequent to entering the number of shares to subscribe (in multiples of 1,000).
• It had confirmed the bid within the price band of ₹147 to ₹150 per share.
• Once the application form is submitted through the ASBA process one needs to ensure that all the details like PAN, DP ID, bank details, etc. are mentioned correctly.
• All prospectus details should be read carefully by investors and they should consult with their financial advisors about suitability for their portfolio.