Rajesh Power Services SME IPO: Offer To Open On November 25

As the year comes to an end, the markets are losing their footing, having suffered major losses over the past few trading weeks. The BSE Sensex dropped to 77,580.31, falling from the 52-week high of 85,978.25.

The NSE Nifty also dropped to 23,532.70 from the 52-week high of 26,277.35. Amid the ongoing chaos, companies are gearing to enter Dalal Street, hoping to wither and go past the bear attack. The focus is on SMEs.

Another Small and Medium Enterprise is gearing up to enter the arena. The Ahmedabad-based Rajesh Power Services Limited is all set to initiate its Initial Public Offer or IPO, on November 25.

About The Company

With a history of over 50 years, Rajesh Power Services Limited provides consultancy to state transmission and distribution companies and private utilities, industries, underground power transmission and infrastructure EPC space. Expanding further, the company has also invested in IoT and cloud-based solutions company HKRP Innovations Limited.

What Is On Offer?

This 1971-born SME has a book built issue of Rs 160.47 crores. The offer has a face value of Rs 10 per individual share. The issue has a price band of Rs 320 to Rs 335 per individual share. The public offer has a lot size of 400 shares. This IPO brings an entirely fresh issue amounting to 2,790,000 shares.

This fresh issue translates to Rs 93.47 crore. The latest GMP, or Grey Market Price, as per Investor Grain has not started yet.

Dates To Remember

The issue for Rajesh Power Services Limited will be opened to investors for subscription on Monday, November 25. The process of the subscription will be available for 3 days and will conclude this very trading week. The IPO will draw curtains on Wednesday, November 27. The tentative date for allotment is Thursday, November 28.

The initiation of refunds would come to pass the same week, on Friday, November 29. The shares would then be credited to the Demat accounts of investors on Friday, November 29.

Finally, the tentative time for the listing of the Initial Public Offering is estimated to happen in December, on Monday, December 2. The entity will be listed on the Bombay Stock Exchange (BSE) SME.

Key Factors

The company is headed by Kurang Ramchandra Panchal, Kaxil Prafulbhai Patel, Rajendra Baldevbhai Patel, and Utsav Nehal Panchal.

In the recently concluded fiscal year, the Gujarat-based company's market capitalisation stood at Rs 603.25 crore. The company is located in Ahmedabad's Navrangpura, in the western state of Gujarat.

Objectives

In addition to the usual 'General Corporate Purposes', Rajesh Power Services Limited intends to deploy the resources raised in capital expenditure. One of them includes the purchase of cable identification, testing and fault location equipment. Another major focus would be on the setting up of a DC solar power plant with a capacity of 1300 KW.

Apart from that, the resources raised will also be used for in-house development of Technical Expertise in the Production of Green Hydrogen and associated equipment such as Electrolysers.

Along with that, the company would also use the resource developed for working capital requirements.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in IPOs involves risks and potential volatility. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred by readers.