Rajesh Power Services IPO allotment date likely today. GMP, how to check allotment status

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Rajesh Power Services IPO allotment date likely today. GMP, how to check allotment status

Team Finance Saathi

29/Nov/2024

What's Covered Under the Article:

Rajesh Power Services IPO Details: The IPO offers a fresh issue and offer for sale totaling ₹160.47 Crores, with shares priced between ₹319 and ₹335.
Rajesh Power Services IPO Subscription Status: As of November 27, the IPO has been subscribed 54.90 times, with high demand expected.
Rajesh Power Services IPO Review: A full review of the financials and IPO pricing shows it is fully priced, and the recommendation is to avoid for listing gains or long-term investments.

Rajesh Power Services Limited (RPSL), an established player in the Engineering, Procurement, and Construction (EPC) sector, provides specialized services to the renewable and non-renewable power sectors. Operating primarily in India, Rajesh Power Services is involved in large-scale projects, including the installation of Extra High Voltage (EHV) cables, transmission lines, and substations. The company’s turnkey projects are crucial for the development of India's power infrastructure, and it also offers operations and maintenance services for solar plants and EHV substations.

RPSL’s IPO, amounting to ₹160.47 Crores, consists of a fresh issue of 27.90 lakh shares worth ₹93.47 Crores and an offer for sale of 20 lakh shares totaling ₹67.00 Crores. The subscription period for the Rajesh Power Services IPO opens on November 25, 2024, and closes on November 27, 2024. The share price band for the IPO is set between ₹319 and ₹335 per share. The company has set a market capitalization of ₹603.25 Crores, making it a significant player in the power sector IPO market.

The lot size for retail investors is set at 400 shares, requiring a minimum investment of ₹1,34,000. High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,68,000 for 800 shares. The Grey Market Premium (GMP) of the Rajesh Power Services IPO is expected to be ₹65 (a 20% gain), indicating positive market sentiment. ISK Advisors Private Limited is the book-running lead manager, and Bigshare Services Private Limited is the registrar for the issue. Sunflower Broking is the market maker for the IPO.

The Upcoming IPOs in this week and coming weeks are Property Share REIT, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO is Ganesh Infraworld, Suraksha Diagnostic, Agarwal Toughened, Apex Ecotech, Abha Power and Steel.

Financial Performance:

RPSL has shown strong growth in revenue and profitability. For the quarter ended September 30, 2024, the revenue stood at ₹31,785.09 Lakhs, with an EBITDA of ₹4,205.04 Lakhs. The restated profit after tax for the same period was ₹2,768.25 Lakhs. Over the last few years, RPSL has consistently reported growth in both revenue and profit, reflecting its strength in executing large-scale power sector projects. The company's restated EBITDA for FY 2024 was ₹4,404.68 Lakhs, compared to ₹1,800.47 Lakhs in FY 2023.

IPO Objectives:

The proceeds from the fresh issue will be used for:

Capital Expenditure: ₹2,510.93 Lakhs, including purchases for cable fault detection and testing equipment, a 1,300 KW DC Solar Power Plant, and in-house development of green hydrogen production.
Additional Working Capital: ₹3,000 Lakhs will be allocated for expanding operational efficiency and meeting growing demand.
General Corporate Purposes: The remaining funds will be used to strengthen the company’s business operations.