Why are DEE Development Engineers shares up over 15% today? Explained

Shares of DEE Development Engineers Limited rose more than 15% after the company announced multiple domestic and international orders with a combined value exceeding ₹173 crore. The contracts relate to piping solutions, HRSG piping systems, fittings and flanges, and have been awarded to both the parent company and its material subsidiary.

The company has received a Letter of Intent from Bharat Heavy Electricals Limited for manufacturing critical piping components, including headers and vessels. The domestic contract, valued at ₹26 crore, has been awarded on a job work basis and is scheduled to be executed within one year. The company stated that the order does not involve any related party transaction and that the promoter group has no interest in the awarding entity.

In addition to the BHEL contract, DEE Development Engineers secured further domestic orders exceeding ₹62 crore. A joint venture between an Indian and foreign power sector conglomerate awarded a Letter of Intent for the manufacturing and supply of critical piping solutions on a job work basis. The aggregate contract value is over ₹42 crore, with delivery scheduled within one year.

Another domestic order has been received from an Indian power sector conglomerate for manufacturing and supply of piping solutions. This contract is valued at more than ₹20 crore and is expected to be executed within six to eight months. The company confirmed that all domestic contracts are non-related party transactions.

The company’s material subsidiary, DEE Piping Systems (Thailand) Co., Ltd.has secured an international order from a US-based OEM operating in the power sector. The total contract value is approximately US$ 9.5 million.

Under this contract, the subsidiary will manufacture HRSG piping for 11 units on a job work basis valued at around US$ 8 million, with delivery scheduled by December 2028. It will also manufacture pipe fittings and flanges for seven units on a material supply basis worth approximately US$ 1.5 million, with delivery expected by December 2027.