Rajesh Power Services IPO is a book-built issue with a total size of ₹160.47 crores. This includes:

• Fresh issue: 27.9 lakh shares worth ₹93.47 crores.
• Offer for Sale (OFS): 20 lakh shares aggregating to ₹67.00 crores.

The IPO opens for subscription on November 25, 2024, and closes on November 27, 2024. Investors can expect the allotment to be finalized on November 28, 2024, and the listing is tentatively scheduled for December 2, 2024, on the BSE SME platform.

IPO Details

• Price Band: ₹320 to ₹335 per share.
• Lot Size: Minimum of 400 shares.
  • Retail investment: Minimum ₹134,000.
  • High Net-worth Individuals (HNIs): Minimum 2 lots (800 shares) or ₹268,000.
• Lead Manager: ISK Advisors Pvt Ltd.
• Registrar: Bigshare Services Pvt Ltd.
• Market Maker: Sunflower Broking.

Business Summary
Rajesh Power Services Ltd. (RPSL) specializes in providing Engineering, Procurement, and Construction (EPC) services for both renewable (solar) and non-renewable power sectors. Key offerings include:

• Turnkey Projects: Extra High Voltage (EHV) cables, substations, and underground power distribution systems.
• Operations and Maintenance: Solar plant and EHV substation management.
• Utility Services: Cable fault rectification, retrofitting transformers, and switch gears.
• Consultancy: Designing power substations and cable systems.

Prominent clients include GETCO, Torrent Power Ltd, and Adani Electricity Mumbai Ltd.

Key Financial Metrics (FY 2021–24)

• Revenue Growth: Increased from ₹14,680.88 lakhs in FY 2021-22 to ₹28,496.98 lakhs in FY 2023-24.
• EBITDA Margin: Improved from 6.85% to 10.84%.
• PAT Margin: Rose from 2.35% to 9.13%.
• Return on Equity (ROE): Grew from 6.79% to 36.41%.

Industry Outlook
India’s power transmission sector has transformed into one of the largest integrated grids globally. With a target of 50% non-fossil fuel capacity by 2030, the transmission network's growth remains pivotal. The sector has shown strong expansion with:

• CAGR of 4.2% in line length.
• Significant capacity additions in alternating current (AC) and high-voltage direct current (HVDC) systems.

This demand ensures steady opportunities for EPC contractors like RPSL.

Objects of the IPO
The funds raised will be used for:

1. Capital Expenditure (₹2,510.93 lakhs):
   • Cable identification and fault testing equipment: ₹1,794.82 lakhs.
   • Setting up a 1300 KW DC Solar Power Plant: ₹416.11 lakhs.
   • Development of green hydrogen expertise: ₹300.00 lakhs.
2. Working Capital Requirements: ₹3,000.00 lakhs.

Conclusion
Rajesh Power Services IPO offers investors a chance to participate in a growing sector while the company aims to strengthen its operational and technical capacities. With a robust financial track record and industry relevance, the IPO is a significant opportunity in 2024.

The Upcoming IPOs in this week and coming weeks are NTPC Green, Lomosaic India, C2C Advanced System, Rajesh Power Services, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO are Zinka Logistics Solution (Black Buck), and Onyx Biotec.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.