Rajesh Power Services IPO Listing Overview

Rajesh Power Services, a Gujarat-based company specializing in the execution of turnkey projects, operation and maintenance, and consultancy services for power utilities, saw a strong debut on the BSE SME platform on December 2, 2024. The company’s shares listed at ₹636.50 per share, reflecting a 90% premium over the issue price of ₹335 per share.

Ahead of the listing, the company’s shares had been trading with a grey market premium of nearly 47% to the issue price, indicating strong market interest and demand.

IPO Details:

• Total Issue Size: ₹160 crore
• Price Band: ₹319-335 per share
• Listed Price: ₹636.50 per share
• Subscription Rate: 59 times

Financial Performance and Order Book

For the financial year 2024, Rajesh Power Services recorded a significant improvement in its financial performance:

• Net Profit: ₹26.02 crore (up from ₹6.75 crore in FY 2023)
• Revenue: ₹285 crore (up from ₹207.2 crore in FY 2023)

The company has a robust order book of ₹2,358.2 crore as of March 2024, which is expected to be executed over the next three financial years.

Rajesh Power Services competes with other listed peers in the sector such as Advait Infratech, Kay Cee Energy and Infra, and Viviana Power Tech. The company’s strong order book and increased revenue highlight its position in the growing power and energy sector, both in the renewable and non-renewable segments.

Market Sentiment and Listing Performance

The strong listing performance of Rajesh Power Services reflects the high demand and investor confidence in the company's growth trajectory. With the shares trading 90% higher than the issue price, the listing has been well-received in the market, especially given the high subscription rate of 59 times.

Conclusion

Rajesh Power Services’ successful IPO listing at a 90% premium on the BSE SME platform showcases its strong market position and investor interest. With a solid order book and improving financials, the company is poised for further growth, making it an interesting player in the power sector.