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Rajesh Power Services IPO: Things Smart Investors Need to Know Before Investing

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Overview of the Company
Established in 1971, Rajesh Power Services Limited is a prominent EPC contractor specializing in power transmission and distribution utilities. The company provides services across renewable and non-renewable energy sectors, catering to diverse clients such as Adani Renewables, Reliance Industries, and Gujarat Metro Rail. Its innovative investments in IoT solutions for energy grids underline its technological edge.

Core Business and Market Position
The company's core offerings include high-voltage cable installations, substations, and power supply arrangements for solar plants. It operates with a robust order book of ₹2,358.17 crores (as per RHP), showcasing its strong market presence. With consistent financial growth and strategic focus on renewable energy, Rajesh Power Services is poised for long-term sustainability.

Rajesh Power Services IPO Details and Objectives

Details in Tabular Format

Particulars

Details

IPO Date

November 25-27, 2024

Issue Size

₹160.47 Crores

Price Band

₹319 - ₹335 per share

Lot Size

400 shares

Fresh Issue

₹93.47 Crores

Offer for Sale

₹67.00 Crores

Listing At

BSE SME

Purpose of the IPO

  • Purchase of cable identification and fault location equipment.
  • Setting up a 1300 KW DC Solar Power Plant.
  • Developing expertise in green hydrogen production and electrolyzers.
  • Additional working capital requirements.
  • General corporate purposes.

Timeline of Rajesh Power Services IPO

Event

Date

IPO Open Date

November 25, 2024

IPO Close Date

November 27, 2024

Allotment Date

November 28, 2024

Refunds Initiation

November 29, 2024

Listing Date

December 2, 2024

Pricing & Lot Size of Rajesh Power Services IPO

Price Band for the IPO

  • ₹319 to ₹335 per share.

Minimum Lot Size and Application Details

  • Minimum investment: ₹134,000 for 400 shares.
  • High Net-worth Individuals (HNI): ₹268,000 for 800 shares.

How to Apply for the Rajesh Power Services IPO?

Online Application Process:

  • Visit Bajaj Broking trading app or website.
  • Log in to your demat account.
  • Go to the IPO section and select " Rajesh Power Services IPO."
  • Choose the lot size and enter the bidding price within the specified band.
  • Complete the application by authorizing the UPI mandate for payment or using the ASBA (Application Supported by Blocked Amount) process through your bank.

Financial Health and Performance

Key Financial Metrics

  • Revenue growth of 39.72% from FY23 to FY24, showcasing robust operational efficiency.
  • Profit After Tax (PAT) surged by an impressive 285.44% in the same period.
  • Total assets stood at ₹33,822.42 lakhs as of September 2024, reflecting a strong asset base.
  • Net worth increased to ₹11,122.22 lakhs by September 2024, driven by significant profitability.
  • Reserves and surplus rose to ₹9,600.48 lakhs, reinforcing financial stability.

Recent Performance and Growth Prospects

  • A strategic focus on renewable energy sectors like solar and hydrogen electrolyzers indicates long-term growth potential.
  • The company’s expanded order book and steady client base are expected to fuel future revenues.
  • Increased investments in advanced technologies such as IoT-based solutions position it for further market expansion.

Investment Risks and Opportunities

Potential Risks of Investing in the IPO

  • Heavy reliance on government projects.
  • Volatility in raw material prices.
  • Regulatory risks in the energy sector.

Opportunities and Growth Potential

  • Expansion into green hydrogen production.
  • Growing demand for renewable energy infrastructure.
  • Diversified client base with marquee clients like Reliance and Adani.

Key Performance Indicator (KPI)

KPI

Values

ROE

24.89%

ROCE

25.61%

Debt/Equity

0.92

P/BV

4.55

PAT Margin (%)

8.11%

Rajesh Power Services IPO Registrar & Lead Managers

Role

Details

Registrar

Bigshare Services Pvt Ltd

Lead Manager

Isk Advisors Pvt Ltd

Company Address of Rajesh Power Services Ltd

  • Address: 380/3, Siddhi House, Opp. Lal Bunglows, Navrangpura, Ahmedabad - 380006.
  • Phone: +91 6358736465
  • Email: cs@rajeshpower.com

Conclusion

Rajesh Power Services IPO provides insights into a company engaged in power transmission and distribution, with a focus on renewable energy and IoT-based solutions. Investors can evaluate its financial growth, market presence, and strategic initiatives before making an informed decision.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

Who is the CEO of Rajesh Power Services Ltd?

Answer Field

The CEO of Rajesh Power Services Ltd is Mr. Rajendra Baldevbhai Patel, a visionary leader driving the company’s growth in power transmission and distribution services.

When will the Rajesh Power Services IPO open for subscription?

Answer Field

The Rajesh Power Services IPO will open for subscription on November 25, 2024, and close on November 27, 2024.

What is the company’s core business, and how sustainable is its business model in the long term?

Answer Field

The company specializes in EPC contracting for power transmission and distribution. Its focus on renewable energy solutions and IoT-based innovations ensures long-term sustainability.

What is the size and growth potential of the market Rajesh Power Services Ltd operates in?

Answer Field

The power sector is rapidly expanding, with high demand for renewable energy and infrastructure, offering significant growth opportunities for Rajesh Power Services Ltd.

How does the company differentiate itself from competitors in terms of products, services, or technology?

Answer Field

Rajesh Power Services Ltd leverages advanced IoT solutions, such as Smart Feeder Management Systems, and caters to both renewable and non-renewable energy sectors.

What are the key drivers of the company’s revenue, and how consistent is its revenue growth?

Answer Field

Key drivers include EPC projects, renewable energy infrastructure, and IoT-based solutions. Revenue has grown consistently, with a 39.72% increase from FY23 to FY24.

Has Rajesh Power Services Ltd achieved profitability or shown a clear path toward achieving it?

Answer Field

Yes, the company has demonstrated strong profitability, with a 285.44% growth in PAT between FY23 and FY24, indicating a clear path to sustained financial success.

Are there any governance issues or red flags in the company’s leadership or board structure?

Answer Field

There are no reported governance issues or red flags in the company’s leadership or board, as detailed in the IPO prospectus.

What are the key risks and rewards of investing in the Rajesh Power Services IPO?

Answer Field

Key risks include dependency on government projects and raw material price volatility. Rewards lie in its strong financials, innovative solutions, and renewable energy focus.

What are the lock-up period details for the Rajesh Power Services IPO?

Answer Field

The lock-up period for anchor investors is 30 days for 50% of shares and 90 days for the remaining shares, ending on December 28, 2024, and February 26, 2025, respectively.

Will Rajesh Power Services IPO pay dividends?

Answer Field

Dividend payments depend on the company’s future profitability and board decisions, as per the IPO prospectus. Currently, its strong financials suggest potential future payouts.

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