Rajesh Power Services IPO Closes Today - (Day 3) Live Updates: Key Highlights, Subscription Status, and Insights

Day 2 Subscription Status

(November 26, 2024, 3:30:30 PM)

By the end of the second day of bidding, the Rajesh Power Services IPO had been subscribed 5.15 times the total shares on offer. The retail investor category saw the highest interest, subscribing 7.01 times their allocated portion. Non-Institutional Investors (NIIs) subscribed 5.49 times their quota, while Qualified Institutional Buyers (QIBs) subscribed 1.63 times their allotted share.

Rajesh Power Services IPO Details

• The IPO is worth Rs 160.47 crore.
• It comprises a fresh issuance of 27.9 lakh shares, amounting to Rs 93.47 crore, and an offer-for-sale (OFS) of 20 lakh shares, aggregating to Rs 67 crore.
• The IPO will remain open for subscription between November 25 and November 27.
• The share allotment status for the public issue will be decided on November 28.
• Shares will be credited to the Demat accounts of successful bidders on November 29, while refunds will be initiated to non-allottees on the same day.
• Shares of Rajesh Power Services are likely to be listed on December 2 on the BSE SME platform.
• The price band has been fixed at Rs 319 to Rs 335 per share.
• Retail investors have to buy at least 400 shares in one lot, taking the minimum investment amount to Rs 1,34,000.
• The book-running lead manager for the SME issue is ISK Advisors Pvt. and the registrar for the issue is Bigshare Services Pvt. The market maker for the issue is Sunflower Broking.

Investor Category Shares Offered

Use of Proceeds

The company plans to use the money raised via the public issue for the following purposes:

• Purchasing equipment used for cable identification, testing and fault location.
• Setting up of the DC Solar Power Plant having a capacity of 1,300 KW.
• Developing in-house technical expertise for the production of Green Hydrogen and purchase of associated equipment such as electrolysers.
• Additional working capital requirements.
• General corporate purposes.

Rajesh Power Services Overview

• Rajesh Power Services was established in 1971.
• The company provides Engineering, Procurement and Construction (EPC) contracting services to state transmission and distribution companies and private utilities.
• It provides EPC services for extra-high-voltage underground cables and transmission lines, HV/MV/LV underground cable layout, overhead MVCC conductor installation, and other such services.
• Notable clients of the company include GIFT City Gujarat, Gujarat Metro Rail Corp., Adani Renewables and Reliance Industries Limited.
• RPSL offers services to the renewable power sector (solar power) and non-renewable power sector. It works as an engineering, procurement and construction (EPC) contractor and provides services to power transmission and distribution utility companies.
• The company offers services for implementing Turnkey projects for laying extra-high-voltage cables and transmission lines, setting up extra-high-voltage (EHV) substations, and designing and implementing underground power distribution systems.
• It also provides operations and maintenance services, which include operating and maintaining solar plants and EHV substations. Further, the company is also engaged in providing utility services to power plants and power transmission companies. Services include cable fault location and rectification, replacement, and retrofitting of transformers and switch gears.

Rajesh Power Services Financials

• Rajesh Power Services Ltd. reported revenue of Rs 295.06 crore in FY24, a 39% year-on-year gain from Rs 211.17 crore in the previous fiscal year.
• The company’s profit after tax also increased 285% at Rs 26.02 crore in FY24 from Rs 6.75 crore in FY23.
• In Q2 FY25, the company reported revenue of Rs 317.85 crore and a net profit of Rs 27.68 crore.

Key Ratios

Disclaimer: Investing in SME IPOs involves a high degree of risk. Such investments may be suitable only for investors with a high-risk tolerance and the ability to bear potential losses. Perform thorough due diligence and consult a financial advisor before investing. Invest wisely and at your own discretion.