Rajesh Power Services Limited (“RPSL” or “The Company”), one of the leading service providers for the power sector, announced that its initial public offering (IPO) will open for subscription on Monday, November 25, 2024. The anchor portion will be opened on Friday, November 22, 2024, and the issue will conclude on Wednesday, November 27, 2024. The company intends to raise Rs. 160.5 crore from the offering and aims to be listed on the BSE SME platform. The price band for the issue has been fixed at Rs. 320-335 per share, and the lot size will be 400 equity shares.
ISK Advisors Private Limited is the sole Book Running Lead Manager to the offer, and Bigshare Services Private Limited is the Registrar.
The IPO will comprise a fresh issue of 27.9 Lakh Equity Shares with a face value of Rs. 10/- and an Offer for Sale of up to 20 Lakh Equity Shares through the book-building route. As many as 13,36,000 equity shares have been reserved for the Anchor investors, 2,44,000 equity shares for the market maker, 6,91,200 equity shares allocated for the NII portion, 9,13,600 equity shares for net QIBs, and the Retail (RII) portion accounts for 16,04,800 equity shares.
According to RHP, RPSL intends to utilise Rs. 25.10 crore of the total IPO proceeds for capital expenditures, such as purchasing cable identification, testing, and fault location equipment (Rs. 17.94 crore), setting up a DC Solar power plant with a capacity of 1300 KW (Rs. 4.16 crore), and developing in-house technical expertise in the production of Green Hydrogen and associated equipment such as electrolysers (Rs. 3 crore). The company plans to use Rs. 30 crore for additional working capital requirements, and the remaining capital will be utilised for general corporate purposes.
The Ahmedabad-headquartered company is in the business of EPC (Engineering, Procurement & Construction) contracting and providing Turnkey services to power transmission and distribution utilities / PSUs / Private Entities since decades. In the renewable sector, the company offers technical services to set up solar power plants and also works on a Turnkey basis to build, operate, and maintain solar power plants. In the non-renewable power sector, the company offers a host of services, including implementation of turnkey projects for laying Extra High Voltage (EHV) substations, design and implementation of underground power distribution system. It also offers Operations and Maintenance services which include operating and maintaining solar power plants and EHV substations.
The company is currently executing major projects under the Central Government’s Revamped Distribution Sector Scheme (RDSS) and Robust Network Scheme of Gujarat State DISCOMs. RPSL has a strong order book of Rs. 2358.17 crore, comprising orders which are to be executed over the next three financial years. The main clients of the company are major public and private utilities like GETCO and other GUVNL companies, Torrent Power, Adani Electricity and others.
Rajesh Power Services Limited, under the leadership and vision of Mr. Kurang Panchal and Mr. Rajendra Baldevbhai Patel, entered into solar power generation by setting up a 1 MW solar power plant at Vill-Patdi in Surendra Nagar district in Gujarat in 2012. The solar plant was set up under one of the first solar schemes launched in 2012 by the Gujarat government under the leadership of Prime Minister Shri Narendra Modi (then Chief Minister of Gujarat). The solar plant is currently operational and generating solar power and supplying power to PGVCL DISCOM.
The company has registered Rs. 313.05 crore in revenue from operations with a profit (PAT) of Rs. 27.68 crore in the first half of the current financial year, compared with Rs. 284.96 crore in revenue from operations and a profit (PAT) of Rs. 26.02 crore in the fiscal year 2024.
