As 2024 draws to a close, the IPO market is buzzing with activity as companies, big and small, gear up to raise funds for their growth and expansion. Joining this wave is Rajesh Power Services, ready to launch its IPO and grab the spotlight.
Rajesh Power Services Limited (RPSL), a company specializing in renewable and non-renewable energy services, is set to debut on the SME platform of the Bombay Stock Exchange (BSE). The IPO will open for subscription from November 22 to November 27, 2024.
The offering includes a total of 47,90,000 equity shares, each with a face value of ₹10. This is divided into 27,90,000 fresh issue shares and 20,00,000 shares being sold by existing shareholders. The price band is set between ₹320 and ₹335 per share, with a minimum application size of 400 shares.
This IPO is an exciting opportunity for investors to be part of a growing power company, and it’s worth exploring the details to understand what it brings to the table.
Rajesh Power Services IPO Highlights
| Section | Parameter | Details |
|---|---|---|
| Important Dates | IPO Opening Date | November 25, 2024 |
| IPO Closing Date | November 27, 2024 | |
| Anchor Investor Bidding Date | November 22, 2024 | |
| Pricing | IPO Price Range | ₹320.00 to ₹335.00 per equity share |
| Face Value of Share | ₹10 each | |
| Offer Details | Net Issue Size | 45,46,000 equity shares (₹160.47 Cr.) |
| Fresh Issue | 27,90,000 equity shares (₹93.47 Cr.) | |
| Offer for Sale (OFS) | Up to 20,00,000 equity shares (₹67.00 Cr.) | |
| Investor Information | Lot Size | Minimum of 400 equity shares |
| Listing Platform | SME Platform of BSE | |
| Issue Type | 100% Book Built Issue |
What is GMP of Rajesh Power Services IPO Today?
As of November 18, 2024, the Grey Market Premium (GMP) for the Rajesh Power Services IPO is ₹00. This indicates that the shares are expected to list at approximately ₹335 per share, showing a potential listing gain of ₹00 or over the issue price of ₹335.
Note: GMP is an unofficial indicator and is based on market speculation; it does not guarantee actual listing performance.
Important Dates to Remember
| Event | Date |
|---|---|
| IPO Opening Date | November 25, 2024 (Monday) |
| IPO Closing Date | November 27, 2024 (Wednesday) |
| Allotment Date | November 28, 2024 (Thursday) |
| Refund Initiation | November 29, 2024 (Friday) |
| Credit of Shares in Demat Account | November 29, 2024 (Friday) |
| Listing Date | December 2, 2024 (Monday) |
Company Financial Standings
| Period | Financial Year 2024 | Financial Year 2023 | Financial Year 2022 |
|---|---|---|---|
| Total Assets | 24039.00 | 19823.38 | 17562.82 |
| Total Revenue | 29506.07 | 21117.57 | 14936.84 |
| Total Expense | 26099.76 | 20257.84 | 14496.64 |
| Profit After Tax | 2602.29 | 675.15 | 344.60 |
| Company’s Net Worth | 8430.05 | 5865.80 | 5228.69 |
| Total Reserves & Surplus | 6908.31 | 4344.06 | 3706.95 |
The company’s total assets grew steadily from 17,562.82 in FY 2022 to 24,039.00 in FY 2024, reflecting consistent growth in assets.
Revenue also saw a sharp increase, rising from 14,936.84 in FY 2022 to 29,506.07 in FY 2024. This growth shows the company’s ability to expand its operations and seize new market opportunities.
Starting with a small profit of 344.60 in FY 2022, the company’s Profit After Tax rose significantly to 2,602.29 in FY 2024. This improvement reflects better revenue generation and effective control over expenses.
Company’s Key Metrics (FY 2024)
| Key Performance Indicator | Value (as of September 30, 2024) |
|---|---|
| Return on Capital Employed (ROCE) | 25.61% |
| Return on Equity (ROE) | 24.89% |
| Price to Book Value (P/BV) | Data not explicitly mentioned |
| EBITDA Margin (%) | 11.35% |
| After Tax Profit Margin (%) | 8.84% |
| Debt to Equity Ratio | Data not explicitly mentioned |
| Return on Net Worth (RONW) | 25.47% |
| Net Asset Value (NAV) | ₹73.66 per share |
Company Business Overview
Rajesh Power Services Limited (RPSL) is a versatile player in the power industry, providing top-notch engineering, procurement, and construction (EPC) services. The company specializes in both renewable energy, such as solar power, and traditional power transmission and distribution. RPSL is known for handling complex projects including designing and implementation of high-voltage project.
Lot Size and Application Amount
| Investor Type | Lot Details | Shares | Amount |
|---|---|---|---|
| Retail Investor | Minimum: 1 Lot | 400 | ₹134,000 |
| Maximum: 1 Lot | 400 | ₹134,000 | |
| HNI Investor | Minimum: 2 Lots | 800 | ₹268,000 |
Reserve Quota For Different Category of Investors
| Investor Category | Reservation |
|---|---|
| Shares Reserved for QIB | 50% of the Total Issue |
| Shares Reserved for Retail Investors | 35% of the Total Issue |
| Shares Reserved for Non-Institutional Investors | 15% of the Total Issue |
Net Cash Flow Overview
| Net Cash Flow | Sep 30, 2024 (₹ Lakhs) | Mar 31, 2024 (₹ Lakhs) | Mar 31, 2023 (₹ Lakhs) | Mar 31, 2022 (₹ Lakhs) |
|---|---|---|---|---|
| Net Cash Flow from Operating Activities | 3,338.42 | -1,466.24 | 1,535.79 | 651.91 |
| Net Cash Flow from Investing Activities | -2,936.17 | 629.69 | -543.15 | -1,903.40 |
| Net Cash Flow from Financing Activities | -406.73 | 829.30 | -1,157.20 | 604.16 |
| Net Increase/(Decrease) in Cash | -4.48 | -7.25 | -164.57 | -647.34 |
State-Wise Revenue Generation
| State | FY 2023-24 (₹ in lakhs) | FY 2022-23 (₹ in lakhs) | FY 2021-22 (₹ in lakhs) |
|---|---|---|---|
| Gujarat | 27,350.26 | 20,700.83 | 14,680.88 |
| Rajasthan | 1,146.71 | 17.10 | – |
| Total Revenue | 28,496.98 | 20,717.94 | 14,680.88 |
Revenue Breakdown: Government and Non-Government
| Entity Type | FY 2023-24 (₹ in lakhs) | FY 2022-23 (₹ in lakhs) | FY 2021-22 (₹ in lakhs) |
|---|---|---|---|
| Government | 15,553.94 | 15,915.71 | 9,714.82 |
| Non-Government | 12,943.03 | 4,802.21 | 4,966.06 |
| Total Revenue | 28,496.98 | 20,717.94 | 14,680.88 |
Peer Comparison: EPS, PE Ratio, and Face Value
| Company Name | EPS (₹) | P/E Ratio | Face Value (₹) |
|---|---|---|---|
| Rajesh Power Services Ltd. | 17.10 | * | 10 |
| Advait Infratech Limited | 21.45 | 80.71 | 10 |
| Kaycee Energy and Infra Ltd. | 7.61 | 37.00 | 10 |
| Viviana Power Tech Ltd. | 10.96 | 85.04 | 10 |
Key Objectives of Fundraising
- General corporate purposes to support business activities.
- Some money will be used for IPO-related expenses like fees and legal costs.
- To meet the working capital needs.
Dividend History
Rajesh Power Services has maintained a consistent dividend payout policy over the past three fiscal years. For the fiscal year ending March 31, 2024, the company declared a dividend of ₹0.50 per equity share, amounting to a total dividend payout of ₹76.09 lakhs, with a dividend rate of 5.00%. In the previous fiscal year, ending March 31, 2023, the company declared a dividend of ₹0.25 per equity share, with a total payout of ₹38.04 lakhs and a dividend rate of 2.50%. Similarly, for the fiscal year, 2022, a dividend of ₹0.25 per equity share was declared, amounting to ₹38.04 lakhs, also keeping a dividend rate of 2.50%. This consistent dividend distribution highlights the company’s commitment to sharing profits with its shareholders.
Positives and Negatives of Rajesh Power IPO
Positives:
- The company has shown strong financial growth.
- It has a robust order book ensuring revenue stability.
- The company has years of experience in power transmission and distribution.
- The company is focusing on renewable energy and innovation to stay ahead of industry trends.
- The company has proven its ability to efficiently complete large-scale projects.
- Company is making collaborations with leading industry players to enhance capabilities.
- The company is consistently improving its operational efficiency.
Negatives:
- The company is heavily reliant on government contracts, due to which it may face regulatory and payment risks.
- It has high working capital requirements.
- The company is entering the renewable energy market, but the lack of experience in these new domains may be riskier.
- The company may have to face the risk of aggressive pricing due to competitive nature of bidding for contracts.
- The company relies on third-party contractors, which could cause quality issues if they don’t perform well.
- Regulatory changes or delays in obtaining necessary approvals could impact project timelines and costs.
Our Verdict
Rajesh Power Services has shown steady financial growth over the past three years, which highlights its strong operations and demand in the market. Its rising revenue shows the company’s ability to handle and complete big projects effectively. The growth in Profit After Tax (PAT) also suggests that the company is managing its costs well and has good potential for the future.
At the same time, investors should keep in mind risks like market ups and downs and challenges specific to the industry when considering this IPO.
Overall, Rajesh Power Services looks like a promising option for long-term investment. It is always beneficial to read Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) carefully to better understand its financials and growth opportunities before making a decision.
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Rajesh Power Services IPO Documents – DRHP & RHP
Popular Questions
- What is the opening and closing date for the Rajesh Power Services IPO?
The IPO opens on 25 November, 2024 (Monday) and closes on 27 November, 2024 (Wednesday). - What is the price band for the Rajesh Power Services IPO?
The price band for the Rajesh Power Services IPO is set between ₹320 and ₹335 per share - What is the minimum lot size for retail investors in the Rajesh Power Services IPO?
Retail investors need to bid for a minimum of 400 shares, which amounts to an investment of ₹134,000 - Who are the lead managers for this IPO?
The lead managers for this IPO are ISK Advisors Private Limited. - Who is the registrar for the Rajesh Power Services IPO?
The registrar is Bigshare Services Pvt. Ltd. - What are the main objectives of the IPO?
The funds will primarily be used for working capital requirements, general corporate purposes and IPO related expenses. - On which stock exchanges, the shares will be listed?
The shares will be listed on the BSE SME Exchange. - What is the total issue size for the Rajesh Power Services IPO?
The total issue size is 4790000 equity shares worth 160.47 Cr. - When will the allotment and refund process begin?
The allotment is scheduled for 28 November, 2024, and refunds will begin on 29 November, 2024. - When will the shares be credited to the Demat account?
Shares will be credited to investors’ Demat accounts on 29 November, 2024. - What is the expected listing date for the IPO?
The shares are expected to list on the stock exchange on 2 December, 2024 (Monday).
Note: This article is based on the information received from the company’s official documents, including the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP). For up-to-date information on the Grey Market Premium (GMP) for the Rajesh Power Services IPO, you may please check our Current GMP, where we will post the latest figures as soon as they are available.
Disclaimer: This article is for educational purposes only. We do not offer any advice on buying or selling securities. Please consult your financial advisor before investing in an IPO or any other securities to make sure that it suits your financial plans and risk tolerance.
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