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	Deep Industries IPO opens on August 29, 2006. 2006-08-23 Deep Industries Limited, provider of air and gas compression services to oil & gas exploration companies, proposes to enter the capital market on 29th August 2006 with a fixed price IPO of 1,13,00,000 equity shares of Rs. 10 each at a price of Rs. 36 aggregating to Rs. 40.68 crores. The issue constituting 56.50% of the post issue paid up capital of the company closes on 4th September 2006. IDBI Capital Market Services Ltd. is the lead manager to the issue and NEXGEN Capitals Ltd and Keynote Corporate Services Ltd. are the co-lead managers to the issue. Intime Spectrum Registry Ltd. is the Registrar and Transfer Agent. This fixed price public issue of 1,13,00,000 equity shares of face value of Rs. 10 each include 11,30,000 equity shares reserved for employees and directors; 28,25,000 equity shares reserved for NRIs and FIIs, and 11,30,000 equity shares reserved for scheduled Banks, Indian Mutual Funds, Indian and multilateral development financial institutions, leaving a net issue to public of 62,15,000 equity shares. A minimum of 31,07,500 equity shares constituting at least 50% of the net offer to the public will be available for allocation on a proportionate basis as retail portion and an equal quantity also for other than retail portion. The equity shares are proposed to be listed on Bombay Stock Exchange Ltd. (BSE). Deep Industries Ltd proposes to utilize the funds raised through this public issue to part finance its plans for procurement of plant and machinery for business expansion and office equipments valued at Rs 51.50 crores. The total fund requirement along with working capital need is estimated at Rs 60.28 crores. The company has already made pre- issue / allotment of 22 lacs equity shares to promoters, promoter group and others at Rs 30 per equity share aggregating to Rs 6.60 crores. The company has received sanction of Rs 13 crore-term loan from Union Bank of India. Deep Industries Ltd currently owns a set of 10 compressor packages to execute its services, out of which 2 are currently deployed in USA. Further, 3 compressors have been deployed at ONGC site for executing compression contract. It has a leased facility in Gandhinagar, Gujarat; to undertake refurbishment, repairs and retrofitting of the existing/newly acquired equipment of self and client. Deep Industries Ltd. provides comprehensive contract compression services, which includes operations and maintenance services. It proactively repackages or reconfigures some of its existing fleet to adapt to customers' needs. The company currently operates primarily in the market for transportable natural gas compression units of up to 2400 HP. It also provides transportation services for the transport of liquid. However it has gradually moved from a liquid transport service provider to compression service providers, a more value added service. The Company has now been providing compression services to esteemed clients like ONGC since the last 9 years. Other clients include GACL, IOC etc. The ultimate aim of the company is to become an integrated service provider to the oil and gas industry. For this purpose it has purchased one 100 Ton Cardwell KB500 Work Over Rig for providing Mobile Work Over Rig services. The Company has joined hands with experienced companies like M/s Valerus Compression Services, Limited Partnership, ('Valerus") Houston Texas, USA for gas compressors and production equipments to act as Sales Representatives for Valerus in all over Asian Region. It has also entered into MoU with M/s PT Indrillco Bakti ('PIB"), Jakarta, Indonesia, under which PIB has agreed to provide technical know- how/collaboration in connection with work over services for 30 to 200 Ton capacity rigs. The Company's income includes income from Air/Gas Compression Services and Transportation Income. The Company has gone on a drive to enhance profitability and has began concentrating on high margin contracts which has led to a rise in EBIDTA from Rs. 266.16 Lacs in fiscal 2005 to Rs. 353.81 Lacs in fiscal 2006 and rise in PAT from Rs.63.49 lacs to Rs. 179 Lacs during the same period, while marginally bringing down the total income from Rs.821.59 lacs in fiscal 2005 to Rs. 766.32 lacs in fiscal 2006. The company has recently bid for 1 Coal Bed Methane block in Andhra Pradesh jointly with Coal Gas Mart LLC, USA and Adinath Exim Resources Limited, Ahmedabad and 1 Coal Bed Methane block in Madhya Pradesh jointly with Coal Gas Mart LLC, USA. Sourced From: Concept Public Relations India Pvt. Ltd



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