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About Rajesh Power Services Ltd IPO
Rajesh Power Services Ltd is set to roll out a Rs 160.47 crore book. This IPO subscription is an amalgamation of a fresh issue of Rs 93.47 crore (27.9 lakh shares) and an offer-for-sale of Rs 67 crore (20 lakh shares). The firm is preparing to make its debut on BSE SME.
Retail investors need to invest a minimum of Rs 134,000. HNI investors require a minimum investment of Rs 268,000 for 800 shares, which is 2 lots.
Bigshare Services Pvt Ltd is acting as the registrar for the issue. Isk Advisors Pvt Ltd is the book running lead manager in this IPO. The market maker for the same is Sunflower Broking.
Rajesh Power Services Ltd IPO GMP Details
The most recent GMP of the IPO is Rs 80, as of 20th November, 2024 11:55 AM. The IPO has a price band of Rs 335. The estimated listing price for Rajesh Power Services is Rs 415, reflecting a potential gain of 23.88% per share.
For the IPO, the Retail Subject to Sauda is Rs 24,300. The GMP ranges from a low of Rs 0 to a high of Rs 80.
Rajesh Power Services Ltd IPO Details
| Rajesh Power Services Ltd IPO Opening Date and Closing Date | 25th November to 27th November |
| Face Value | Rs 10 per share |
| Price Band | Rs 320 to Rs 335 per share |
| Lot Size | 400 Shares |
| Total Issue Size | 4,790,000 shares (aggregating up to Rs 160.47 Cr) |
| Fresh Issue | 2,790,000 shares (aggregating up to Rs 93.47 Cr) |
| Offer for Sale | 2,000,000 shares (aggregating up to Rs 67 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | BSE SME |
| Shareholding Pre-Issue | 15,217,392 |
| Shareholding Post Issue | 18,007,392 |
| Market Maker Portion | 244,000 – Sunflower Broking |
| Basis of Allotment | Thursday, 28th November, 2024 |
| Refund Initiation | Friday, 29th November, 2024 |
| Credit of Shares in Demat | Friday, 29th November, 2024 |
| Listing Date | Monday, 2nd December, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 27th November, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Rajesh Power Services Company Details
- Rajesh Power Services Limited, established in 1971, specialises in consultancy and services for power transmission and distribution utilities.
- The company has invested in HKRP Innovations Limited, which provides IT solutions like IoT and cloud-based tools for power grids and renewable energy.
- Services include underground cable installation, substation construction, distribution network revamping, solar power projects, and maintenance of power systems.
- Key clients include GIFT City, Gujarat Metro Rail, Reliance Industries, Adani Renewables, Torrent Power, and several others.
- As of 1st April, 2024, the company employs 940 individuals across various departments.
Rajesh Power Services Ltd IPO Anchor Investors Details
| Bid Date | 22nd November, 2024 |
| Shares Offered | 1,336,400 |
| Anchor Portion Size (in Cr) | 44.77 |
| Anchor lock-in period end date for 50% shares (30 Days) | 28th December, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | 26th February, 2025 |
Rajesh Power Services Ltd Lot Size, Shares, And Their Value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 400 | Rs 134,000 |
| Retail (Max) | 1 | 400 | Rs 134,000 |
| HNI (Min) | 2 | 800 | Rs 268,000 |
Investor categories and Rajesh Power Services Ltd shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Rajesh Power Services Ltd Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 24,039.00 Lakh | Rs 19,823.38 Lakh |
| Revenue | Rs 29,506.07 Lakh | Rs 21,117.57 Lakh |
| Profit After Tax | Rs 2,602.29 Lakh | Rs 675.15 Lakh |
| Net Worth | Rs 8,430.05 Lakh | Rs 5,865.80 Lakh |
| Reserves and Supplies | Rs 6,908.31 Lakh | Rs 4,344.06 Lakh |
| Total Borrowing | Rs 7,767.08 Lakh | Rs 5,971.20 Lakh |
Rajesh Power Services Ltd IPO: Worth Investing?
Financial Performance:
Revenue: The company generated Rs 31,785.09 lakh in revenue during the period ended on 30th September, 2024.
Profit After Tax (PAT): The company earned a profit of Rs 2,768.25 lakh after deducting taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 11,122.22 lakh.
Financial Position:
Assets: The company’s total assets amounted to Rs 33,822.42 lakh.
Total Borrowing: The company has borrowed a total of Rs 7,973.04 lakh.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 9,600.48 lakh.
Rajesh Power Services Ltd Key Performance Indicators (KPI) and their values:
The market capitalisation of Rajesh Power Services Ltd IPO is Rs 603.25 crore. As of 30th September 2024, KPI and their values are:
| KPI | Values |
| Return on Equity (ROE) | 24.89% |
| Return on Capital Employed (ROCE) | 25.61% |
| Return on Net Worth (RoNW) | 25.47% |
| Price to Book Value (P/BV) | 4.55 |
| Debt/Equity | 0.92 |
| PAT Margin (%) | 8.11 |
Objectives of Rajesh Power Services Ltd IPO
The Net Issue aims to raise funds for:
- Capital Expenditure:
- Buying cable identification, testing, and fault location equipment.
- Setting up a 1300 KW DC Solar Power Plant.
- Developing expertise in producing Green Hydrogen and equipment like Electrolysers.
- Additional Working Capital Needs.
- General Corporate Purposes.
Some major risks associated with the Rajesh Power Services Ltd IPO are:
- The company’s growth depends heavily on the power sector, and any regulatory changes or project delays could affect its prospects.
- The power infrastructure sector is highly competitive, requiring the company to focus on innovation and cost efficiency to stay ahead.
- Large projects come with risks like delays, cost overruns, and resource challenges, which may impact profitability.
Frequently Asked Questions (FAQs)
What is the price band of Rajesh Power Services’ IPO?
Price band has been fixed at Rs 320 and Rs 335 per share.
What is the retail investor quota of Rajesh Power Services’ IPO?
A minimum of 35% shares shall go to the retail investors.
What is the lot size and the number of shares allocated to HNIs?
The lot size for HNIs is 2 lots, with a total of 800 shares allocated.
How can I apply for Rajesh Power Services’ Initial Public Offer?
Via your demat account or through the banking or other financial institutions during the period of IPO.
When is the Last Date of IPO subscription for Rajesh Power Services?
The cut-off time is 27th November, 2024, at 5 PM; however, most brokers stop accepting applications between 1-3 PM.
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