Rajesh Power Services Files Draft Papers With BSE SME to Raise Funds via IPO

Rajesh Power Services Ltd on Thursday said it has filed draft papers with BSE SME to raise funds through an initial public offering (IPO).

The IPO is a combination of a fresh issuance of 27.9 lakh equity shares and an Offer-for-Sale (OFS) of up to 20 lakh equity shares, the Ahmedabad-headquartered company said in a statement.

Of the total IPO proceeds, Rajesh Power Services (RPSL) intends to utilise Rs 25.10 crore for capital expenditures, such as purchasing cable identification and testing; Rs 17.94 crore for fault location equipment; Rs 4.16 crore for setting up a DC Solar power plant with a capacity of 1300 KW and; Rs 3 crore for developing technical expertise in the production of Green Hydrogen and associated equipment.

Also, the company plans to use Rs 30 crore for additional working capital requirements, and the remaining capital will be utilised for general corporate purposes.

RPSL has been in the business of EPC (Engineering, Procurement & Construction) contracting and providing turnkey services to power transmission and distribution utilities/ PSUs / Private entities.

At present, the company has an order book of over Rs 2,358 crore comprising projects related to turnkey-based contracts, design engineering procurement, and substation construction.

On the financial front, RPSL has registered Rs 284.96 crore in revenue from operations with a profit (PAT) of Rs 26.02 crore in the fiscal year 2024, compared to Rs 207.17 crore and a PAT of Rs 6.75 crore in FY23.

ISK Advisors is the sole book-running lead manager to the issue, and Bigshare Services is the registrar.