Rajesh Power makes robust debut, shares list at 90% premium to IPO price

Rajesh Power Services Limited made a robust debut on the BSE SME platform on Monday, December 2, with shares listing at a premium of 90% over the issue price.

Shares of the company listed at ₹636.5 per share against the issue price of ₹335 per share, reflecting gains of 90%.

The stock gained a further 5% to hit the upper circuit at ₹668.3 per share, up by 99% from the issue price.

After listing, investors who were allotted at least a single lot in the IPO subscription would have made profits of ₹1,20,400 (₹301x400).

Around 12.5 lakh shares of the company changed hands in early trade. The stock moved between a high of ₹668.3 apiece and a low ₹636.5 apiece in early trade. Total turnover stood at more than ₹83 crore. The market capitalisation of the company stood at ₹1,203.43 crore.

Rajesh Power Services IPO details

Rajesh Power Services Ltd is an engineering, procurement, and construction (EPC) and consultancy services provider to transmission and distribution companies in the government and private sectors. It caters to both renewable and non-renewable power sectors.

Rajesh Power raised over ₹160 crore through the IPO, which was open from November 25 to November 27.

The company launched its initial public offering (IPO) to raise around ₹160.47 crore from public investors. The book-built offer comprised a fresh issue of 27.9 lakh shares worth ₹93.47 crore and an offer for sale of 20 lakh shares worth up to ₹67 crore.

The company had set the price band at ₹319 to ₹335 per share. The minimum lot size was 400 shares and the minimum investment required was ₹134,000 for retail investors.

At the close of bidding on November 27, the initial public offering of Rajesh Power Services was subscribed more than 59 times.

Applications for over 18.96 crore shares were received against 32.09 lakh shares on offer.

The retail portion was subscribed 31.95 times, while the Non-Institutional Investors’ (NIIs) portion was booked 138.81 times. The Qualified Institutional Buyers (QIBs) booked their quota 46.39 times.

Previously the company raised ₹44.77 crore from anchor investors. The company allotted 13.36 lakh shares to 17 fund schemes at a price of ₹335 per share.

Rajesh Power Services finalised the IPO share allotment status on November 28.

Rajesh Power Services IPO objective

The company has proposed to utilise around ₹25 crore of the IPO proceeds to purchase cable identification, testing, and fault location equipment, setting up a 1,300 KW DC Solar Power Plant and Inhouse development of Technical Expertise in Production of Green Hydrogen and associated equipment such as Electrolyser.

It will use the amount for working capital requirements and other corporate purposes.