Question 1: What is the overview of the Company?

​Desco Infratech Limited, established in 2011, is a prominent infrastructure company specializing in engineering, planning, and construction services across several key sectors:​

• City Gas Distribution (CGD): The company has laid over 4,000 kilometers of Medium-Density Polyethylene (MDPE) pipelines, delivering piped natural gas to more than 200,000 residential, industrial, and commercial customers. ​
• Power Transmission: Desco Infratech provides robust power distribution infrastructure, including the installation of Low Tension (LT) and High Tension (HT) cables, ensuring reliable power delivery across diverse sectors. ​
• Water Distribution: The company offers comprehensive solutions for water infrastructure, including the design and construction of water distribution networks, open wells, sump wells, and overhead tanks, ensuring reliable access to clean water across diverse terrains. ​
• Renewable Energy: Desco Infratech is actively involved in the renewable energy sector, focusing on the implementation of solar power projects to drive the transition to a cleaner and more sustainable future. ​

Operating in over 55 cities across 14 states in India, Desco Infratech has established itself as a versatile and reliable infrastructure service provider. ​

Financially, the company has demonstrated significant growth. In the fiscal year ending March 31, 2024, Desco Infratech reported a total income of ₹29.49 crore and a net profit of ₹3.46 crore, reflecting a substantial increase from previous years. ​

The company is committed to maintaining the highest safety standards, prioritizing the well-being of its personnel and the environment in every project undertaken. This commitment is coupled with a dedication to on-time delivery and exceeding client expectations. ​

Desco Infratech’s mission is to earn respect and recognition for its unwavering dedication and professional excellence by consistently delivering innovative solutions, fostering integrity and accountability, and exceeding client expectations in every project.

Question 2 : Who are the promoter of the Company?

Mr. Pankaj Pruthu Desai is the Chairman and Managing Director of the Company. He has completed his bachelor of Arts (Economics) from the Maharaja Sayajrao University of Baroda in 1987. He has experience of over 18 year in executing projects and business plans related to city gas distribution & Pipelines Industry.

Mr. Malhar P Desai is the Whole time Director of the Company. He has completed his bachelor’s degree in Business Administration and Management from Mahatma Gandhi University in 2014-2015. He has around 8 years of experience in the city gas pipeline and operations activities.

Mr. Samarth Pankaj Desai is the Executive Director of the Company. He has completed his Bachelor of Arts, Bachelor of laws degree from Bharti Vidyapeeth University, Pune. He has around 6 years of combined experience in connectivity of gas pipelines, O&M activities of the company.

Quesiton 3: How company performed in the past?

Question 4: How much money is the company raising and why?

In the IPO, the company is offering 20.5 Lakh shares, priced at INR 147-150 per share, aggregating to total of INR 30.75 Cr, with a lot size of 1000 shares. For the purpose of:

Funding of capital expenditure requirements towards setting up of corporate office in Surat, Gujrat- INR 1.04 Cr

Funding of capital expenditure requirements towards purchase of machineries – INR 1.68 Cr

Funding Working Capital Requirements – INR 18 Cr

General Corporate Purposes

Quesiton 5: Valuation of the Company and comparison with other companies

IPO’s Strength

• Addresses any unnecessary experience related to the distribution and maintenance of city gas.
• Experienced proponents and management team.
• Direct Relationship with Suppliers.
• SOP is an essential component of city gas distribution contracting services.
• Safety and Compliance Standards Applications.

IPO’s Weakness

• The performance of the company is dependent on the continued services of key management and skilled personnel. The loss of these individuals may disrupt operations and plans for growth. 
• The business is capital intensive and any inability to meet working capital requirements or delays in receivables may harm liquidity and financial performance. 
• The infrastructural sector is highly competitive. Severe competition may affect margins, profitability, and market share. 
• Any delays in executing the ongoing or future projects arising from unforeseen circumstances or third-party issues may lead to cost escalation and penalty clauses.  

Company Contact Details

Desco Infratech Limited is headquartered in Surat, Gujarat, with additional offices in Mumbai and Faridabad. For inquiries, you can reach them through the following contact details:​

Surat (Head Office):

• Address: 1-A/6, D. K. Park, Rupali Canal, Bhatar Road, Surat, Gujarat 395007​
• Phone: +91-261-3520979​
• Email: info@descoinfra.co.in​

Mumbai Office:

• Address: Office No 56-2, Pinnacle Business Park, Mahakali Caves Road, Mumbai – 400093​
• Phone: +91-22-62638200​
• Email: investors@descoinfra.co.in​

Faridabad Office:

• Address: Shop Number-1167, Sector 21B, Huda Market, Faridabad, Haryana 121001​

​Desco Infratech Limited has appointed Bigshare Services Pvt. Ltd. as its Registrar and Transfer Agent (RTA) for its upcoming Initial Public Offering (IPO). The RTA is responsible for managing the company’s share registry and ensuring smooth processing of share transfers and investor records.​

Registrar and Transfer Agent Details:

• Company: Bigshare Services Pvt. Ltd.​
• Address: S6-2, 6th Floor, Pinnacle Business Park, Mahakali Caves Road, Next to Ahura Centre, Andheri East, Mumbai, Maharashtra – 400093
• Phone: +91-22-62638200

FAQs on Desco Infratech IPO

1. What is Desco Infratech Limited?

Desco Infratech Limited is an infrastructure company specializing in City Gas Distribution, Power Transmission, Water Distribution, and Renewable Energy projects. The company has a strong presence across multiple states in India.

2. When is the Desco Infratech IPO opening?

The IPO dates, including the opening and closing period, will be announced in the company’s official prospectus.

3. What is the price band of the Desco Infratech IPO?

The IPO price band will be determined based on market demand and will be disclosed in the company’s red herring prospectus.

4. What is the lot size for the Desco Infratech IPO?

The minimum lot size for retail investors will be mentioned in the IPO prospectus. Investors can check the official IPO document for exact details.

5. Who are the promoters of Desco Infratech Limited?

The company’s promoters include:

• Ms. Indiraben Pruthubhai Desai
• Mr. Pankaj Pruthu Desai
• Ms. Hina Pankaj Desai
• Mr. Malhar P. Desai
• Mr. Samarth Pankaj Desai

6. What is the main business of Desco Infratech?

Desco Infratech provides infrastructure solutions in the fields of gas distribution, power transmission, water distribution, and renewable energy projects. The company has laid extensive pipelines and developed power infrastructure in multiple regions.

7. How can I apply for the Desco Infratech IPO?

Investors can apply for the IPO through their stockbrokers, online trading platforms, or directly via their bank’s ASBA (Application Supported by Blocked Amount) facility.

8. Who is the registrar for Desco Infratech IPO?

The registrar and transfer agent for the IPO is Bigshare Services Pvt. Ltd., responsible for handling the share allotment and investor records.

9. Where will Desco Infratech shares be listed?

The shares of Desco Infratech Limited will be listed on the BSE SME Exchange after a successful IPO.

10. What are the risks involved in investing in Desco Infratech IPO?

As with any IPO, risks include market volatility, sector performance, and company-specific risks. Investors should review the financials, business fundamentals, and risk factors mentioned in the company’s red herring prospectus before investing.