Rajesh Power Services IPO to Open on November 25: Details to Know

As the year draws to a close, Rajesh Power Services Limited, an Ahmedabad-based SME with over 50 years of history, is preparing to launch its IPO on November 25, 2024. Rajesh Power Services IPO will raise approximately Rs.160.47 crore through a mix of fresh issues and an offer for sale. 

Offer Structure & Pricing

Rajesh Power Services IPO will have a price band of Rs.320 to Rs.335 per equity share with a face value of Rs.10 each. It includes a fresh issue of 2,790,000 shares amounting to Rs.93.47 crore, while the remaining Rs.67 crore comes from an offer for sale of 2,000,000 shares. Investors can apply for a minimum lot size of 400 shares, translating to an application amount of Rs.134,000.

Subscription & Listing Timeline

The subscription window will be open from November 25 to November 27, 2024. Following this, allotments are expected to be finalized on November 28, with refunds initiated and shares credited to Demat accounts by November 29. The company is set to list on the Bombay Stock Exchange (BSE) SME platform on December 2, 2024.

Objectives 

Rajesh Power Services will use IPO proceeds for operational upgrades, including cable testing equipment, a 1300 KW solar power plant, green hydrogen expertise development, and electrolysers, alongside meeting working capital needs and general corporate expenses.

Financials

The company reported revenues of Rs.284.97 crore in FY24, from Rs.207.18 crore in FY23. Profits also grew, reaching Rs.26.02 crore in FY24 from Rs.6.75 crore in FY23. Rajesh Power Services boasts a Return on Net Worth (RoNW) of 30.87% and an EBITDA margin of 10.84%.

Conclusion: With good financials and plans to invest in renewable energy and cutting-edge technology, Rajesh Power Services Limited’s IPO offers a glimpse into its growth going ahead. Investors eyeing the SME segment will be watching this listing closely.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.