Desco Infratech IPO listing today. Check GMP and other details

The shares of Desco Infratech will debut on the BSE SME platform on Tuesday. Ahead of the listing, the GMP was at around Rs xx, indicating a premium of % over the issue price. However, this could change depending on the sentiments in the secondary market.

The company will use the IPO proceeds, Rs 31 crore to be precise, for funding of capital expenditure requirements towards setting up of a corporate office in Surat, purchase of machinery, working capital requirements and general corporate purposes.

The issue, which was completely a fresh equity sale of 20.5 lakh shares, was subscribed by a robust 83 times at close. The bidding was driven by non-institutional investors, whose category was subscribed over 200 times.

Desco Infratech specializes in pipeline laying, installation, testing, and commissioning for Piped Natural Gas (PNG) used by both residential and commercial consumers. Its Operation and Maintenance (O&M) services cover both underground and above-ground gas pipelines, including carbon steel and MDPE pipelines.

As part of these services, the company conducts pressure and leak detection tests on MDPE pipelines to identify leaks, preventing gas loss and potential accidents. It also operates emergency response vehicles equipped to detect leaks and deter unauthorized access.

In case of emergencies, a dedicated team of engineers, technicians, and support staff is deployed to assess and resolve issues, ensuring minimal disruption to gas supply.Recently, the company expanded into the power sector, providing installation, connectivity, commissioning, and erection services for Low Tension (LT) and High Tension (HT) cables.These services facilitate efficient power transmission and distribution for industrial, commercial, and residential applications. In April 2023, it received its first order for cabling and termination works related to traffic signal lights in Surat.

Further diversification led to the inclusion of water distribution projects in its service portfolio after the financial year ended on March 31, 2024.

The company now undertakes the design and construction of water distribution networks, open wells, sump wells, overhead tanks, and well systems. It is currently executing projects involving HDPE pipe installation, overhead tank construction, and open well development in Jhabua, Madhya Pradesh.

Additionally, the company has secured its first renewable energy project at the Gujarat Hybrid Renewable Energy Park. This includes the erection of reinforced concrete (RCC) piles for structural support, along with the installation of structures and solar modules for energy generation.