Rajesh Power Services Ltd Unveils IPO Plans

Rajesh Power Services Ltd has filed for an IPO with BSE SME, consisting of fresh issue and Offer-for-Sale. Funds raised will support capital expenditures on equipment and solar plant, working capital needs, and corporate purposes. RPSL offers EPC services and reported significant revenue growth in FY24.

Rajesh Power Services Ltd announced on Thursday its plans to enter the capital markets by filing draft papers for an Initial Public Offering (IPO) with BSE SME. This move combines a fresh issuance of 27.9 lakh equity shares and an Offer-for-Sale (OFS) of up to 20 lakh equity shares, according to a company statement from its headquarters in Ahmedabad.

The proceeds from this IPO will be directed towards several strategic investments. Rajesh Power Services intends to allocate Rs 25.10 crore for capital expenditures, including the purchase of cable identification and testing equipment. An additional Rs 17.94 crore will be used for fault location equipment, Rs 4.16 crore is earmarked for setting up a DC Solar power plant with a capacity of 1300 KW, and Rs 3 crore will be invested in developing technical expertise in Green Hydrogen production and associated equipment.

Furthermore, the company plans to reserve Rs 30 crore for additional working capital and utilize any remaining capital for general corporate purposes. Known for its EPC contracting and turnkey services for power transmission and distribution utilities, RPSL currently boasts an order book exceeding Rs 2,358 crore. Financially, the company reported an increase in revenue to Rs 284.96 crore and a profit of Rs 26.02 crore in FY2024, marking growth from the previous year's figures. ISK Advisors and Bigshare Services are managing and registering the issue respectively.

(With inputs from agencies.)