Rajesh Power Services listing: Stock makes bumper market debut at 90% premium, hits upper circuit at ₹636 on BSE SME

Rajesh Power Services IPO Listing: Rajesh Power Services made a stellar market debut on Monday, December 2, as its shares were listed at ₹636 apiece on the BSE SME, indicating a premium of 90 per cent over the issue price of ₹335. The stock continued to rise after listing, reaching ₹668.30, marking an almost 100% gain from the IPO price.

The IPO, open for subscription from November 25 to November 27, saw a healthy response from investors, being oversubscribed 59 times.

Specifically, the NII segment was oversubscribed 138.46 times, while the QIB portion was oversubscribed 46.39 times. The retail portion has also been booked at 31.96 times, as per the exchange data. The IPO price was set between ₹319 and ₹335 per share.

The company intends to utilise the net proceeds for several key purposes, including capital expenditure for the purchase of cable identification, testing, and fault location equipment.

Additionally, the company said it will use funds to set up a 1300 KW DC solar power plant and to support in-house development of technical expertise for the production of green hydrogen, along with associated equipment such as electrolysers.

The proceeds will also be allocated towards meeting additional working capital requirements and for general corporate purposes.

About Rajesh Power Services

The company is in the business of engineering, procurement, and construction (EPC) contracting and providing services to power transmission and distribution utility companies. The company undertakes PEC contracts for laying EHV/HV/LV underground cable networks, setting up solar power plants, and setting up substations.

The company offers services to the renewable power sector (solar power) and the nonrenewable power sector.

Its revenue from operations mainly consists of the sale of services of EPC contracts, which include revenue from turnkey projects, O&M services, utility services, cable and equipment testing, and design and consultancy services. As a percentage of total income, these were 96.58 per cent, 98.11 per cent, and 98.29 per cent, respectively, in fiscal years 2024, 2023, and 2022.

Its profit after tax increased to ₹19.27 crore, or 285.44 per cent, from ₹6.75 crore in fiscal 2023 to ₹26.02 crore in fiscal 2024. The increase in profit after tax is due to higher revenue from operations and other income. This was in line with the increased total income of the company, as per the company's DRHP report.

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