Rajesh Power Services IPO opens today. Check subscription status, GMP and other details.

IPO of Rajesh Power Services: Rajesh Power Services SME IPO opened for subscription today, Monday, November 25th. The three-day public offering, which closes on November 27, aims to attract… ₹160.47 crore was raised through the placement. The IPO set the issue price range in the range ₹319-335 per share.

Rajesh Power Services IPO Subscription Status

The IPO witnessed high demand and was fully subscribed on the first day. By 15:49 the issue was booked 1.42 times on the first day of trading. The IPO received bids for 45.41 lakh shares against 31.09 lakh shares offered.

The retail investor segment recorded 2.16 times and the non-institutional investor (NII) category recorded 1.55 times. However, there have been no bids on the qualified institutional buyer (QIB) share so far.

Rajesh Power Services IPO GMP today

Gray market IPO premium (GMP) today is ₹70 per share, indicating an expected listing price of ₹405, premium of more than 20.9% to the issue price ₹335. GMP abandoned ₹90 for the last 3 sessions.

About IPO

The SME IPO is a combination of fresh issue of 27.9 lakh shares totaling ₹93.47 crores and offer for sale of 20 lakh shares in aggregate. ₹67.00 crores. In anticipation of the IPO, the company raised ₹44.77 crores from major investors on November 22.

The promoters currently hold 100 per cent stake in the firm, which will reduce to 73.4 per cent after the share issue. Not more than 50 percent of the net issue is reserved for QIBs, while not less than 35 percent and 15 percent of the net issue is reserved for retail investors and FIIs respectively.

Funds raised through the Net Issue will be used for a variety of purposes, including capital costs for equipment to identify, test and detect cable faults. A portion will also be allocated for the construction of a 1,300 kW DC solar power plant. In addition, the company plans to invest in developing its own technical expertise related to the production of green hydrogen and related equipment such as electrolysers. These funds will also meet additional working capital needs and be used for general corporate purposes.

Retail investors must apply for a minimum lot size of 400 shares, representing an investment of ₹1.34 lakhs. High Net Worth Individuals (HNIs) must apply for a minimum of two lots or 600 shares, totaling ₹2.68 lakhs.

The distribution of funds for the IPO is expected to be completed on Thursday, November 28, 2024. Meanwhile, the initiation of refunds to investors who were not allotted shares and crediting of shares to the Demat account of the recipients will take place on Friday. November 29. The shares will be listed on the BSE SME platform on Monday, December 2, 2024.

Isk Advisors Pvt Ltd is the lead manager for the Rajesh Power Services IPO and Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for the Rajesh Power Services IPO is Sunflower Broking.

About the company

Founded in 1971, Rajesh Power Services Limited offers consulting services to public sector power transmission and distribution companies as well as private utilities and industrial units. The company has also invested in HKRP Innovations Limited (HKRP), which provides customized IT solutions tailored to the energy sector. HKRP specializes in IoT and cloud technologies for power grids and renewable energy, offering tools such as smart feeder management system (SFMS), virtual feeder segregation (VFS), oil well real-time monitoring system (RTMS) and solar energy. Energy Data Management (SEDM). Rajesh Power Services caters to both renewable and non-renewable segments of the power sector.

For the financial year ended March 31, 2024, the company reported a 39.72% increase in revenue and a significant growth of 285.44% in profit after tax (PAT) compared to the previous year.

Review

“The company is engaged in providing all types of services for the renewable and non-renewable energy sectors. Since FY24, it has marked a quantum leap in its earnings and revenue. The company has a portfolio of orders worth ₹2,358.17 crores as on the date of submission of this proposal. Based on annual excess earnings for FY25, the output looks reasonable. Investors can allocate funds for the medium to long term,” said Dilip Davda of Chittorgarh.com, giving the issue an ‘applicable’ rating.

Disclaimer: The opinions and recommendations expressed above are those of the individual analysts or brokerage firms and not of Mint. We advise investors to consult with certified experts before making any investment decisions.