On Monday, December 2, Rajesh Power Services made a spectacular market debut when its shares were listed on the BSE SME at ₹636 each, which represents a 90% premium over the issue price of ₹335. Following the listing, the stock increased even more, hitting ₹668.30, over 100% higher than the IPO price.
Investors responded favourably to the initial public offering (IPO), which was oversubscribed 59 times during its November 25–27 subscription period.
In particular, the QIB piece was oversubscribed 46.39 times, and the NII segment was oversubscribed 138.46 times. According to the exchange data, the retail portion has also been booked 31.96 times. Between ₹319 to ₹335 per share was the IPO price.
The corporation plans to use the net proceeds for several important things, such as capital expenditures for the acquisition of equipment for fault location, testing, and cable identification.
The company added that the money will be used to support the internal development of technological competence for the generation of green hydrogen, as well as related equipment such electrolysers, and to put up a 1300 KW DC solar power plant.
Additionally, the money will be used for general business reasons and to cover additional working capital needs.
About Rajesh Power Services
The company contracts with and provides services to electricity transmission and distribution utility companies in the engineering, procurement, and construction (EPC) sector. The business takes on PEC contracts to install substations, solar power plants, and EHV/HV/LV underground cable networks.
The business provides services to both the nonrenewable and renewable power sectors, including solar power.
Sales of EPC contract services, such as turnkey project income, O&M services, utility services, cable and equipment testing, and design and consulting services, make up the majority of its operating revenue. In fiscal years 2024, 2023, and 2022, these were 96.58 per cent, 98.11 cents, and 98.2centt of total income, respectively.
Its post-tax profit climbed from ₹6.75 crore in fiscal 2023 to ₹26.02 crore in fiscal 2024, reaching ₹19.27 crore, or 285.44%. Increased operating and other revenue is what caused the profit after taxes to rise. This was consistent with the company’s DRHP report showing an increase in overall income.
