Shares of DEE Development Engineers Ltd. rose nearly 4% in intraday trade on Wednesday after the company's management outlined plans to reduce debt, strengthen its balance sheet and expand into new business segments following its recent Rs 300 crore preferential fund raise.
The stock traded at Rs 715 on the NSE at around 11:30 a.m., up more than 3% from its previous close of Rs 691.6.
The management said the company intends to use the fresh capital primarily to repay debt, improve its financial position and pursue growth opportunities in new sectors. It also reaffirmed its revenue growth targets and said it does not expect to raise additional debt over the next three years.
Debt Repayment To Strengthen Balance Sheet
Chairman and Managing Director K L Bansal said the company will use about Rs 225 crore from the fund raise to repay existing borrowings.
Lower debt will strengthen DEE Development Engineers' balance sheet, improve its credit profile and enhance its ability to bid for larger projects, the management said.
The remaining Rs 75 crore has been set aside for general corporate purposes and may also be used for future capital expenditure.
Company Targets New Growth Areas
The company said a stronger balance sheet would support its expansion into the nuclear power and data centre sectors.
Bansal said DEE Development Engineers is targeting a revenue compound annual growth rate of 10% to 20%, supported by better asset utilisation, higher return ratios and stronger cash generation.
"We do not plan to raise additional debt over the next three years," Bansal said.
Order Book Remains Healthy
The company reported a consolidated order book of Rs 2,428.2 crore as of June 30, 2026.
During June, it secured fresh orders worth Rs 99.02 crore and executed projects worth Rs 104.72 crore.
For FY27 so far, cumulative order inflows stood at Rs 780.87 crore, while cumulative project execution reached Rs 294.37 crore.
The company also said it is the lowest bidder for additional orders worth about Rs 12 crore, which have not yet been added to its order book.
Stock Performance
DEE Development Engineers has gained more than 244% so far in 2026, while the benchmark Nifty 50 has declined more than 7% over the same period.
The stock has also advanced 6.6% over the past week, including Wednesday's gains.
At the close of the previous session, the company had a market capitalisation of Rs 4,980.03 crore and was trading at a price-to-earnings ratio of 62.08 times.
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