Rajesh Power Services IPO: BSE SME issue subscribed nearly 2 times on high retail demand; check key details

Rajesh Power Services IPO saw a strong demand on the first day of bidding on Monday, November 25, as the public issue was booked nearly 2 times, driven by the retail and Non-Institutional Investors (NIIs).

BSE SME issue received bids for over 61 lakh shares compared to 32.09 lakh shares on offer, leading to an overall subscription of 1.9 times. The retail portion of the IPO was subscribed 2.79 times with applications for 44.79 lakh shares as against 16.04 lakh shares reserved for the category. The NIIs submitted bids for over 16.24 lakh shares against 6.91 lakh shares set aside for the category. The Qualified Institutional Buyers (QIBs) did not apply for IPO shares compared to their reserved quota of 9,13,600 shares.

Rajesh Power Services IPO offer size and price band

Rajesh Power Services aims to raise ₹160.47 crore through its public issue. The BSE SME offer consists of a fresh issue of 27.9 lakh shares, amounting to ₹93.47 crore, and an offer-for-sale (OFS) portion of 20 lakh shares, aggregating to ₹67 crore. The IPO price band has been fixed at ₹319 to ₹335 per share.

Retail investors interested in applying for Rajesh Power Services IPO can place bids for a minimum of 400 shares, which aggregates to an investment of ₹1,34,000. On the other hand, High-Net-Worth Individuals (HNIs) can place bids for 2 lots or 800 shares, which amounts to an investment of ₹2,68,000.

Rajesh Power Services IPO dates

Rajesh Power Services IPO is open for subscription from Monday, November 25, to Wednesday, November 27. Rajesh Power Services IPO share allotment status is likely to be finalised on Thursday, November 28.

After finalising the share allotment status of the public issue, the company will initiate refunds and transfer shares to Demat accounts on Friday, November 29.

Rajesh Power Services shares will be listed on the BSE SME platform. The tentative listing date for Rajesh Power Services Limited shares is Monday, December 2.

Rajesh Power Services IPO registrar

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

Rajesh Power Services promoters

Rajendra Baldevbhai Patel, Kurang Ramchandra Panchal, Kaxil Prafulbhai Patel, and Utsav Nehal Panchal are the promoters of Rajesh Power Services. Before the issue, the promoters held a 100% stake in the company. After the public issue, their shareholding will reduce to 73.4%.

Rajesh Power Services key financials

Rajesh Power Services’ revenue for Q2FY25 stood at ₹317.85 crore. Its net profit stood at ₹27.68 crore in the September quarter. Rajesh Power Services’ net worth was ₹111.22 crore at the end of the September quarter of FY25.

Rajesh Power Services’ revenue for FY24 increased by over 39% to ₹295.06 crore compared to ₹211.17 crore in FY23. The company’s net profit for the fiscal ended March 31, 2024, stood at ₹26.02 crore, up more than 285% compared to ₹6.75 crore in the preceding fiscal.

Its networth increased over 43% to ₹84.3 crore from ₹58.65 crore in the preceding fiscal.

Rajesh Power Services IPO objective

Rajesh Power Services plans to use the money raised via the public issue to purchase cable identification, testing, and fault location equipment. The company also plans to use the funds to set up a 1,300 KW DC Solar Power Plant. Using the funds raised via the public issue, the company will develop in-house expertise for the production of Green Hydrogen and associated equipment such as Electrolysers. A portion of the proceeds will also be used for additional working capital requirements and general corporate purposes.

About Rajesh Power Services Limited

Rajesh Power Services Limited was established in 1971. The company provides consultancy services to state transmission and distribution companies, private utilities and industries. The company caters to both renewable energy and non-renewable energy segments of the power industry. Notable clients of the company include Gujarat Metro Rail Corporation Ltd, Adani Renewables, Prestige and Reliance Industries Limited.