Rajesh Power Services IPO: Rajesh Power Services' SME IPO opened for subscription today, Monday, November 25. The three-day public offer, which will close on November 27 aims to raise ₹160.47 crore through the offering. The IPO has set a price band for the issue in the range of ₹319-335 per share.
The IPO witnessed robust demand and was fully subscribed on Day 1 itself. By 3:49 pm, the issue was booked 1.42 times on the first day of bidding. The IPO received bids for 45.41 lakh equity shares against 31.09 lakh shares on offer.
The retail investor segment was booked 2.16 times, while the non-institutional investors (NII) category was subscribed 1.55 times. However, the Qualified Institutional Buyers (QIBs) portion did not witness any bids till now.
The IPO's grey market premium (GMP) today is ₹70 per share, which indicates an expected listing price of ₹405, a premium of over 20.9 per cent over its issue price of ₹335. The GMP declined from ₹90 in the last 3 sessions.
The SME IPO is a combination of fresh issue of 27.9 lakh shares aggregating to ₹93.47 crore and offer for sale of 20 lakh shares aggregating to ₹67.00 crore. Ahead of the IPO, the company raised ₹44.77 crore from anchor investors on November 22.
Currently the promoters hold 100 percent stake in the firm which will be reduced to 73.4 percent post the issue. Not more than 50 percent of the net issue has been reserved for the QIBs while not less than 35 percent and 15 percent of the net issue is reserved for retail investors and NIIs, respectively.
The funds raised through the Net Issue will be utilized for various purposes, including capital expenditure for the purchase of cable identification, testing, and fault location equipment. A portion will also be allocated to set up a 1300 KW DC Solar Power Plant. Additionally, the company plans to invest in the in-house development of technical expertise related to the production of green hydrogen and associated equipment, such as electrolysers. The funds will also address additional working capital requirements and be used for general corporate purposes.
Retail investors must apply for a minimum lot size of 400 shares, amounting to an investment of ₹1.34 lakh. High net-worth individuals (HNIs) must apply for at least two lots, or 600 shares, totalling ₹2.68 lakh.
The allotment for the IPO is expected to be finalised on Thursday, November 28, 2024. Meanwhile, the initiation of refunds for investors who were not allotted the shares and the credit of shares to the Demat account of the allottees 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 book running lead manager of the Rajesh Power Services IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Rajesh Power Services IPO is Sunflower Broking.
Founded in 1971, Rajesh Power Services Limited offers consultancy services to state transmission and distribution companies, as well as private utilities and industries. The company has also invested in HKRP Innovations Limited (HKRP), which provides customized IT solutions tailored for the energy sector. HKRP specializes in IoT and cloud-based technologies for power grids and renewable energy, offering tools such as the Smart Feeder Management System (SFMS), Virtual Feeder Segregation (VFS), Real-Time Monitoring System for Oil Wells (RTMS), and Solar Energy Data Management (SEDM). Rajesh Power Services caters to both renewable and non-renewable segments of the power sector.
For the financial year ending March 31, 2024, the company reported a 39.72% increase in revenue and a significant 285.44% growth in profit after tax (PAT) compared to the previous year.
"The company is engaged in the business of providing all sort of services for renewable and non-renewable energy sectors. It marked quantum jump in its top and bottom lines from FY24 onwards. The company has an order book worth ₹2,358.17 crore as of the date of filing this offer document. Based on FY25 annualized super earnings, the issue appears reasonably priced. Investors may park funds for medium to long term," Dilip Davda of Chittorgarh.com said, assigning an 'apply' rating to the issue.
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