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Desco Infratech IPO
Desco Infratech Ltd
₹1,47,000 /1000 sharesMinimum Investment
Desco Infratech IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| -- | ₹150.00 | ₹160.00 | ₹10.00 (6.67%) |
Desco Infratech IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 24 Mar ‘25 - 26 Mar ‘25 | ₹1,47,000 | 1,000 | ₹147 - ₹150 |
| Issue Size | IPO Doc |
|---|---|
| 30.75Cr | RHP PDF |
Subscription rate
As of 26 Mar'25, 05:00 PM
| Qualified Institutional Buyers | 28.76x |
| Non-Institutional Investor | 233.62x |
| Retail Individual Investor | 50.26x |
| Total | 55.74x |
About Desco Infratech
Founded in
2011
Managing director
Mr. Pankaj Pruthu Desai
Parent organisation
Desco Infratech Ltd
Strengths & Financials of Desco Infratech
Strengths
Risks
Desco Infratech has over a decade of experience in the city gas distribution sector, specialising in pipeline installation, maintenance, and safety compliance. It has expanded its services beyond gas distribution to include power infrastructure projects, such as LT and HT cable installations. The company also claims to be involved in water distribution projects, including pipeline installation, overhead tanks, and well construction.
The company claims to have direct relationships with suppliers. This direct sourcing model is intended to ensure better quality control, timely availability of raw materials, and improved operational efficiency in project execution.
The company claims to operate client-dedicated emergency response vehicles equipped for leak detection and prevention of unauthorised access. It also claims to have specialised teams, including engineers and technicians, ready to respond quickly to emergencies and ensure an uninterrupted gas supply.
The company claims to prioritise regulatory compliance and safety by providing personal protective equipment (PPE) such as helmets, reflector jackets, and other safety gear. It also claims to conduct regular training sessions to ensure that employees adhere to industry safety protocols.
Desco Infratech is ISO 9001:2015 certified for quality management systems.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 19.85 crore in FY22 to Rs 29.22 crore in FY23 to Rs 29.39 crore in FY24, while PAT increased from Rs 0.82 crore in FY22 to Rs 1.23 crore in FY23 to Rs 3.46 crore in FY24.
Desco Infratech is involved in multiple legal proceedings, including taxation disputes and regulatory actions, with unascertained liabilities. Any unfavourable rulings in these cases may result in unexpected financial liabilities and compliance burdens, impacting the company’s financial standing.
The top 10 customers of the company contributed Rs 20.63 crore (91.17%), Rs 28.96 crore (98.52%), Rs 26.44 crore (90.47%), and Rs 19.85 crore (99.99%) to the order book in the period ended September 30, 2024, FY24, FY23, and FY22, respectively. Any failure to retain these key customers, expand the customer base, or a loss of business from these clients could hit the company’s business and financial standing.
The company has reported negative cash flows from operating activities amounting to Rs 8.05 crore, Rs 0.28 crore, and Rs 1.69 crore in the period ended September 30, 2024, FY24, and FY23 respectively. It has also reported negative cash flows from investing activities amounting to Rs 1.12 crore, Rs 0.80 crore, Rs 0.72 crore, and Rs 0.20 crore in the period ended September 30, 2024, FY24, FY23, and FY22 respectively. If cash outflows continue to exceed inflows, the company may face liquidity challenges in the future.
Desco Infratech generates a majority of its revenue from Gujarat, Haryana, Uttar Pradesh, and Punjab. Any adverse political, social or economic developments in any of these regions could negatively impact the company.
The company has a history of delays in filing GST, TDS, EPF, and ESIC returns across multiple financial years, leading to penalties and interest payments. Any continued pattern of non-compliance could result in regulatory actions, fines, and reputational damage.
A significant portion of the company’s revenue is derived from sales to public sector undertakings (PSUs). PSUs contributed 46.74%, 73.71%, 66.28%, and 71.74% to total revenue for the period ended 30 September 2024, FY24, FY23, and FY22, respectively. Any fall in demand, budgetary limitations, or operational disruptions within these undertakings could negatively impact the company’s revenue stream.
Desco Infratech Financials
*All values are in Rs. Cr
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Application Details of Desco Infratech IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹147 - 150 | ₹2 - 5 Lakh |
| High Networth Individual | ₹147 - 150 | ₹2 - 5 Lakh |
For Desco Infratech IPO, eligible investors can apply as Regular.