Desco Infratech IPO Listing: Stock lists at 6.67% premium on BSE SME

Desco Infratech IPO Listing

Desco Infratech IPO Listing: A Strong Debut with Upper Circuit Hit, Marking a 12% Capital Gain in FY26

Desco Infratech, an emerging player in India’s infrastructure sector, made a highly anticipated debut on the BSE SME platform today.

The company’s initial public offering (IPO) was open for subscription between March 24 and March 26, 2025, and it raised ₹30.75 crore through the issuance of new equity shares.

As of today, the company’s shares have been listed on the BSE SME, and they’ve had a stellar start with impressive gains for investors.

The stock surged above its IPO issue price of ₹150, opening at ₹160.00, marking a 6.67% listing gain.

Furthermore, the momentum didn’t stop there, with the stock hitting the upper circuit limit of ₹168.00 shortly after its debut, resulting in a 12% gain for IPO investors.

This remarkable performance signals a strong market confidence in the company’s growth prospects and further solidifies Desco Infratech’s presence in the booming infrastructure sector.

Desco Infratech’s IPO Performance: A Strong Start with Significant Listing Gains

Desco Infratech’s IPO was met with a tremendous response from investors, being oversubscribed by more than 83 times.

This overwhelming demand reflects investor enthusiasm and confidence in the company’s business model and future potential.

The IPO’s pricing strategy, with shares issued at ₹150 each, was seen as an attractive proposition by investors, especially in light of Desco Infratech’s solid financial performance and growth trajectory.

On the listing day, Desco Infratech’s shares opened at ₹160.00, representing a premium of 6.67% over the issue price.

The stock’s performance continued to impress throughout the day, with shares rising further to hit the upper circuit limit of ₹168.00.

The upper circuit indicates that the stock is now locked at this price level for the time being, as per BSE SME rules. This 12% surge from the listing price not only rewards IPO investors but also signals strong demand for the company’s stock in the market.

The solid opening marks a successful first entry into the financial year 2026 (FY26), offering a glimpse of the potential upside for future investors.

A Breakdown of Fund Utilization: Where Will the IPO Proceeds Go?

Desco Infratech’s IPO has successfully raised ₹30.75 crore, and the company has laid out a clear plan for how these funds will be allocated to fuel its growth and business expansion. The breakdown of the fund utilization is as follows:

• ₹1.04 crore for Setting Up a Corporate Office in Surat: This allocation is part of the company’s strategy to establish a stronger presence in the key industrial hub of Surat. The new office will serve as a base for its operations and help the company manage its growing business more efficiently.
• ₹1.68 crore for Machinery Purchase: As part of its growth strategy, Desco Infratech plans to invest in new machinery. This investment will help enhance the company’s operational efficiency, enabling it to meet the increasing demands in its core business areas, such as city gas distribution, renewable energy, and power infrastructure.
• ₹18 crore for Working Capital Requirements: A significant portion of the funds, ₹18 crore, is designated for working capital needs. This will help Desco Infratech ensure smooth day-to-day operations, supporting ongoing and upcoming projects. The infusion of capital will also help the company maintain financial flexibility as it scales its business.
• Remaining Funds for General Corporate Purposes: The remaining funds from the IPO will be used for general corporate purposes, providing the company with the necessary financial resources to support strategic initiatives, business growth, and potential acquisitions.

The effective deployment of this capital will be crucial in driving Desco Infratech’s expansion and enhancing its ability to capitalize on emerging opportunities in the infrastructure and energy sectors.

Desco Infratech: A Look at the Business and Financials

Founded in January 2011, Desco Infratech has been a key player in the infrastructure sector, specializing in engineering, planning, and construction services for city gas distribution, renewable energy, water, and power infrastructure projects.

The company’s expertise lies in the implementation of large-scale infrastructure projects, and it has built a solid reputation across India.

One of Desco Infratech’s key achievements is the installation of over 2 lakh natural gas connections in 55 cities across 14 states.

Additionally, the company has laid more than 4,000 kilometers of medium-density polyethylene (MDPE) pipeline, which is integral to the delivery of natural gas to urban and semi-urban areas.

This extensive experience and wide-reaching footprint in the infrastructure sector have positioned Desco Infratech as a formidable player in India’s rapidly evolving infrastructure market.

From a financial perspective, Desco Infratech has demonstrated strong and consistent growth. In FY 2022, the company reported a net profit of ₹83 lakh.

This figure grew significantly to ₹1.23 crore in FY 2023 and continued to rise to ₹3.46 crore in FY 2024.

During this period, Desco Infratech’s revenue grew at a compound annual growth rate (CAGR) of over 21%, reaching ₹29.49 crore.

This rapid growth in both revenue and profit underscores the company’s operational efficiency, market demand, and successful execution of its business model.

For the current financial year, FY 2024-25, Desco Infratech has already made significant strides. In the first half of the year (April to September 2024), the company has reported a net profit of ₹3.38 crore and revenue of ₹22.75 crore.

This sets the company up for another strong year, with expectations for continued growth and expansion in the latter half of FY 2025.

Growth Prospects: A Bright Future for Desco Infratech

The strong listing performance of Desco Infratech’s IPO and its solid financial trajectory suggest a bright future ahead for the company.

The funds raised from the IPO will help Desco Infratech strengthen its infrastructure capabilities, expand its project portfolio, and explore new opportunities in renewable energy and other emerging sectors.

As India continues to invest in large-scale infrastructure projects, the demand for services provided by companies like Desco Infratech is expected to grow.

With its proven track record in city gas distribution, renewable energy, and power infrastructure, Desco Infratech is well-positioned to capitalize on these opportunities.

The company’s ability to scale operations efficiently, coupled with its strategic investments in machinery and office infrastructure, will be key drivers of its long-term success.

Final Remarks

Desco Infratech’s IPO has been a resounding success, with strong demand from investors and a significant listing gain.

As the company continues to grow and expand, it holds the potential to deliver substantial value to its shareholders and contribute to India’s infrastructure development.

With the capital raised from the IPO, Desco Infratech is poised to take its business to new heights in the coming years, positioning itself as a leader in the nation’s burgeoning infrastructure sector.