Is Desco Infratech Ltd IPO Halal or Haram? If you’re looking for a detailed Shariah compliance analysis, you’re in the right place! In this article, we break down whether Desco Infratech Ltd IPO meets Shariah Screening guidelines or not.
Is Desco Infratech Ltd IPO Halal or Not?
Desco Infratech Ltd IPO is considered Not Halal and Non-Shariah Compliant because the company fails the “Illiquid Assets to Total Assets Ratio” criterion, with an illiquid assets ratio of 9.53%, falling below the required 20% threshold under Shariah guidelines.
Shariah Compliance Screening of Desco Infratech Ltd IPO
For an IPO or Stocks to be considered Halal, it must pass all the Shariah screening criteria, which include:
| Criteria | Value | Status |
| Business Activity | Construction | ✅ PASS |
| Impermissible Income to Total Revenue | 0.16% | ✅ PASS |
| Interest-Bearing Debt to Total Assets | 18.87% | ✅ PASS |
| Illiquid Assets to Total Assets Ratio | 9.53% | ❌ FAIL |
| Net Liquid Assets vs Market Capitalization | Compliant as per Shariah principles | ✅ PASS |
| Non-Compliant Investments to Total Assets | Less than 33% (Compliant) | ✅ PASS |
Listing Details of Desco Infratech Ltd IPO
| IPO Opening Date | Mon, March 24, 2025 |
| IPO Closing Date | Wed, March 26, 2025 |
| Expected Allotment Date | Thur, March 27, 2025 |
| Refund Initiation | Fri, March 28, 2025 |
| Shares Credited to Demat | Fri, March 28, 2025 |
| Expected Listing Date | Tue, April 01, 2025 |
| UPI Mandate Confirmation Deadline | 5 PM on March 26, 2025 |
Desco Infratech Ltd IPO Price and Issue Details
| IPO Date | March 24, 2025 – March 26, 2025 |
| Expected Listing Date | Tue, April 01, 2025 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹147 – ₹150 per share |
| Lot Size | 1000 Shares |
| Total Issue Size | 20,50,000 shares (₹30.75 Cr) |
| Fresh Issue | 20,50,000 shares (₹30.75 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Pre-Issue Shareholding | 56,26,008 shares |
| Post-Issue Shareholding | 76,76,008 shares |
Business Overview – Desco Infratech Ltd
Desco Infratech Ltd is a construction and infrastructure development company engaged in executing large-scale civil engineering projects. The company specializes in residential, commercial, and industrial construction, offering high-quality engineering solutions. With a strong focus on innovation, sustainability, and timely project delivery, Desco Infratech Ltd serves both government and private sector clients.
It plays a crucial role in urban development by contributing to roadways, bridges, buildings, and other infrastructure projects. The company aims to enhance operational efficiency through modern technology and industry best practices. By maintaining high construction standards and adhering to regulatory compliance, Desco Infratech Ltd continues to strengthen its position in the growing infrastructure sector.
Desco Infratech Ltd Financial Information (Restated)
Refer to Desco Infratech IPO RHP for detailed information.
| Category | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | ₹36.12 Cr | ₹23.8 Cr | ₹20.65 Cr | ₹11.73 Cr |
| Revenue | ₹22.75 Cr | ₹29.49 Cr | ₹29.28 Cr | ₹19.92 Cr |
| Profit After Tax | ₹3.38 Cr | ₹3.46 Cr | ₹1.23 Cr | ₹0.83 Cr |
| Net Worth | ₹22.67 Cr | ₹11.99 Cr | ₹5.04 Cr | ₹3.85 Cr |
| Reserves & Surplus | ₹17.04 Cr | ₹11.72 Cr | ₹4.79 Cr | ₹3.6 Cr |
| Total Borrowing | ₹6.82 Cr | ₹4.06 Cr | ₹5.81 Cr | ₹3.09 Cr |
Conclusion
Based on the Shariah screening standard and the latest financial report, Desco Infratech Ltd is considered Not Halal and Non-Shariah Compliant due to its illiquid assets ratio falling below the required threshold. (Allah Knows the Best)
Disclaimer: The information on Halalfinance.co.in is for educational and informational purposes only and not financial advice. We are not liable for any investment decisions you make; always consult a financial advisor before investing.
Hasan is the founder of HalalFinance.co.in, created after personally struggling to find reliable answers about halal investing in stocks. With a finance background and a passion for helping the Muslim community, He now shares well-researched, transparent, and authentic content to empower Muslims on their path to halal wealth-building.