The SME IPO of Rajesh Power Services, which went live on Monday, November 25, is seeing a respectable number of subscriptions. The goal of the three-day public offering, which ends on November 27, is to raise ₹160.47 crore. The initial public offering (IPO) has established a price range of ₹319–335 per share.
The issue had been booked 2.68 times on Tuesday, the second day of bidding, at 11:05 a.m.
While the non-institutional investor (NII) category was subscribed to 3.04 times, the retail investor segment was booked 4.06 times. But as of right now, there have been no bids on the Qualified Institutional Buyers (QIBs) section.
On the first day of the IPO, all subscriptions were received.
GMP
With a projected listing price of ₹405, the IPO’s grey market premium (GMP) is currently ₹70 per share, more than 20.9% above its issue price of ₹335. In the previous three sessions, the GMP dropped from ₹90.
About the IPO
The SME IPO consists of a 20 lakh share sale offering for ₹67.00 crores and a new issue of 27.9 lakh sharestotallingg ₹93.4croresre. On November 22, the business received ₹44.77 crores from anchor investors before the initial public offering.
The promoters currently own a 100% share in the company; after the problem, that will drop to 73.4%. The QIBs have been allocated a maximum of 50% of the net issue, while retail investors and NIIs have been allocated at least 35% and 15% of the net issue, respectively.
A capital investment for the acquisition of equipment for cable identification, testing, and fault location is one of the many uses for the money raised through the Net Issue. Additionally, some funds will be used to establish a 1300 KW DC solar power plant. The business also intends to make investments in the internal development of technical know-how about the manufacturing of green hydrogen and related machinery, like electrolysers. The money will also be utilized for regular business reasons and to meet other working capital needs.
A minimum lot size of 400 shares, or an investment of ₹1.34 lakh, is required of retail investors. High net worth individuals (HNIs) are required to submit applications for a minimum of two lots, or 600 shares, with a total value of ₹2.68 lakh.
On Thursday, November 28, 2024, the allocation for the IPO is anticipated to be finalized. On Friday, November 29, the process of crediting shares to the allottees’ Demat accounts and initiating refunds for investors who were not given shares will begin. On Monday, December 2, 2024, the shares will become live on the BSE SME platform.
The Rajesh Power Services IPO’s book-running lead manager is Isk Advisors Pvt Ltd, while the issue’s registrar is Bigshare Services Pvt Ltd. Sunflower Broking is the market maker for Rajesh Power Services’ first public offering.
About Rajesh Power
Rajesh Power Services Limited was established in 1971 and provides consulting services to commercial utilities, enterprises, and state transmission and distribution firms. Additionally, the business has invested in HKRP Innovations Limited (HKRP), a provider of IT solutions specifically designed for the energy industry. With tools like the Smart Feeder Management System (SFMS), Virtual Feeder Segregation (VFS), Real-Time Monitoring System for Oil Wells (RTMS), and Solar Energy Data Management (SEDM), HKRP is an expert in IoT and cloud-based solutions for power grids and renewable energy. Both renewable and non-renewable power sector segments are served by Rajesh Power Services.
The business reported a noteworthy 285.44% increase in profit after tax (PAT) and a 39.72% increase in revenue for the fiscal year that ended on March 31, 2024.
Review
“The company is engaged in the business of providing allsortst of services for renewable and non-renewable energy sectors. It marked a 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.
