Rajesh Power Services
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Nov 2024 – 27 Nov 2024
- Listing date
- 02 Dec 2024
- Face value
- ₹1 per share
- Issue price
- ₹335 per share
- Lot size
- 400 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹160 Cr
- Market cap at offer price
- ₹603 Cr
- Promoter holding
- 100.00% → 73.40% pre-issue → post-issue
- ISIN
- INE0VN801010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- ISK Advisors Pvt.Ltd.
- Registered office
- 380/3, Siddhi House, Opp.Lal Bunglows, B/H Sasuji Dinning Hall, Off C.G.Road, Navrangpura, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 13,36,400 | — | — |
| Market maker | 2,44,000 | — | — |
Application size
Minimum 400 shares per lot, in multiples, at ₹335
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 400 | ₹1,34,000 |
| S-HNI (min) | 2 | 800 | ₹2,68,000 |
| S-HNI (max) | 7 | 2,800 | ₹9,38,000 |
| B-HNI (min) | 8 | 3,200 | ₹10,72,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 17.10 | 30.75 |
| P/E (×) | 19.59 | 10.89 |
| Price to book (×) | 4.55 | — |
| Market cap | — | ₹603 Cr |
Key performance indicators
- Return on net worth
- 25.47%
- ROCE
- 25.61%
- Debt / equity
- 0.92
- PAT margin
- 8.11%
- NAV per share
- ₹73.66
- Price to book
- 4.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Rajesh Power Services
Rajesh Power Services Limited (RPSL) was originally established as a partnership firm 'Rajesh Traders' on May 5, 1971, and converted to a private limited company on February 10, 2010, before converting to public limited company on June 26, 2024. The company operates as an EPC contractor primarily serving the power sector in India. RPSL provides services including implementation of turnkey projects for laying Extra High Voltage cables and transmission lines, setting up EHV substations, design and implementation of underground power distribution systems, operations and maintenance services for solar plants and EHV substations, utility services to power plants and transmission companies (including cable fault location, transformer replacement and retrofitting), and consultancy services for substation and cable system design. The company's clients are primarily major electricity supply companies and government entities in Gujarat, along with private and semi-government companies. RPSL generates revenue through EPC contracts, O&M services, and utility services. The company owns and operates a 1 MW solar power plant established in 2012 under Gujarat's 1st Solar Scheme with a 25-year PPA with PGVCL, and has executed renewable energy projects totaling 394 MW capacity. Key financial metrics show revenue growth from ₹14,680.88 lakhs (FY2022) to ₹28,496.98 lakhs (FY2024), with PAT growing from ₹344.60 lakhs to ₹2,602.29 lakhs over the same period.
Company Analysis
from RHPRajesh Power Services Limited is an Engineering, Procurement and Construction (EPC) contractor providing turnkey solutions for power transmission and distribution infrastructure, including substations, underground power distribution systems, operations & maintenance services, and renewable energy projects, with expanding capabilities in solar power generation and green hydrogen technology.
Rajesh Power Services Limited (RPSL) was originally established as a partnership firm 'Rajesh Traders' on May 5, 1971, and converted to a private limited company on February 10, 2010, before converting to public limited company on June 26, 2024. The company operates as an EPC contractor primarily serving the power sector in India. RPSL provides services including implementation of turnkey projects for laying Extra High Voltage cables and transmission lines, setting up EHV substations, design and implementation of underground power distribution systems, operations and maintenance services for solar plants and EHV substations, utility services to power plants and transmission companies (including cable fault location, transformer replacement and retrofitting), and consultancy services for substation and cable system design. The company's clients are primarily major electricity supply companies and government entities in Gujarat, along with private and semi-government companies. RPSL generates revenue through EPC contracts, O&M services, and utility services. The company owns and operates a 1 MW solar power plant established in 2012 under Gujarat's 1st Solar Scheme with a 25-year PPA with PGVCL, and has executed renewable energy projects totaling 394 MW capacity. Key financial metrics show revenue growth from ₹14,680.88 lakhs (FY2022) to ₹28,496.98 lakhs (FY2024), with PAT growing from ₹344.60 lakhs to ₹2,602.29 lakhs over the same period.
Objects of the Issue
- Purchase of cable identification, testing and fault location equipments ₹1,794.82 lakhs p.22
- Setting up of DC Solar Power Plant having capacity of 1300 KW ₹416.11 lakhs p.22
- Inhouse development of Technical Expertise in Production of Green Hydrogen and associated equipment such as Electrolysers ₹300.00 lakhs p.22
- Additional Working Capital Requirement ₹3,000.00 lakhs p.22
- General Corporate Purpose ₹2,286.00 lakhs p.22
- Capital Expenditure - Purchase of cable identification, testing and fault location equipments ₹1,794.82 lakhs p.110
- Capital Expenditure - Setting up of DC Solar Power Plant having capacity of 1300 KW ₹416.11 lakhs p.110
- Capital Expenditure - Inhouse development of Technical Expertise in Production of Green Hydrogen and associated equipment such as Electrolysers ₹300.00 lakhs p.110
- Additional Working Capital Requirement ₹3,000.00 lakhs p.110
- General Corporate Purpose ₹2,286.00 lakhs p.110
- Setup of Solar Power Plant (1300 KW DC capacity) p.175
- Funding for Green Hydrogen Electrolyser Business and Technology Transfer/Knowledge Sourcing p.176
- Additional Working Capital Requirement p.175
Issue Structure
- Total Issue
- ₹16,046.50 lakhs (upto 47,90,000 equity shares)
- Fresh Issue
- ₹9,346.50 lakhs (upto 27,90,000 equity shares at ₹335 per share)
- Offer for Sale
- ₹6,700 lakhs (upto 20,00,000 equity shares at ₹335 per share)
- Price Band
- ₹319.00 to ₹335.00 per equity share of face value of ₹10 each
- Lot Size
- Minimum bid of 400 equity shares and multiples of 400 thereafter
- Face Value
- ₹10 per equity share
Business Model
RPSL operates as an EPC contractor generating revenue from: (1) Turnkey project contracts for power transmission and distribution infrastructure; (2) Operations and Maintenance (O&M) services for solar plants and EHV substations; (3) Utility services to power plants and transmission companies including cable fault location, transformer replacement and retrofitting; and (4) Consultancy services for power substation and cable system design. Revenue is derived primarily from contracts awarded by government electricity supply companies through tender-based competitive bidding processes. The company also generates revenue from its own 1 MW solar power plant through a long-term power purchase agreement.
Business Segments
SWOT Analysis
- • Established presence in power transmission and distribution sector with EPC expertise(p.20)
- • Strong revenue growth trajectory with CAGR expansion(p.20)
- • Healthy profitability with improving PAT margins(p.20)
- • Strong order book visibility providing revenue pipeline(p.37)
- • Diversified renewable energy project execution capability(p.33)
- • Strong credit ratings from CRISIL reflecting financial health(p.37)
- • Strong financial performance with revenue growth and improving profitability(p.175)
- • Substantial order book providing revenue visibility(p.175)
- • Diversified income sources across renewable and non-renewable segments(p.177)
- • Established expertise and track record in renewable energy (solar power)(p.177)
- • Established promoter group with decades of business experience in power sector(p.305)
- • Diversified service offerings across renewable and non-renewable energy sectors(p.305)
- • Presence of promoter-led group companies offering complementary services(p.220)
- • Strong revenue growth trajectory with 37.55% increase in FY2024(p.309)
- • Substantial profit growth with 285.44% increase in PAT from FY2023 to FY2024(p.310)
- • Robust order book supporting future revenue growth(p.309)
- • Diversified service portfolio across EPC contracts and O&M services(p.308)
- • Healthy profitability margins with 11.38% PBT margin in H1 FY2025(p.309)
- • Heavy dependence on top 5 customers for majority of revenue(p.37)
- • Heavy reliance on contract labour and manpower-intensive operations(p.34)
- • Solar business expansion at early stage with unproven execution(p.30)
- • History of late filing compliance with statutory authorities(p.31)
- • Proposed solar plant on leased land from promoter family members(p.33)
- • Early-stage hydrogen electrolyser development with uncertain timelines(p.33)
- • Trademark application pending approval(p.40)
- • Existing litigation matters creating management diversion(p.30)
- • High working capital requirements for turnkey project execution(p.177)
- • Price-based competition in tender bidding(p.177)
- • High dependence on related party transactions and inter-corporate financing(p.240)
- • Significant reliance on loan financing from directors and related parties(p.240)
- • Heavy dependence on bank borrowings with personal guarantees from directors(p.240)
- • Significant contingent liabilities from bank guarantees given to related entities(p.256)
- • Outstanding income tax matter from previous year(p.256)
- • High dependence on government entities as customers creating revenue concentration risk(p.312)
- • Significant reliance on top customer UGVCL representing 56.14% of revenue in H1 FY2025(p.315)
- • Heavy dependence on working capital funding from directors and related parties(p.312)
- • Substantial increase in working capital requirements due to trade receivable growth(p.312)
- • Elevated leverage with debt-to-equity ratio of 0.92:1 at FY2024(p.334)
- • Expanding transmission and distribution infrastructure requiring EPC services(p.20)
- • Renewable energy sector growth driven by government targets(p.20)
- • Significant growth in transmission infrastructure additions(p.20)
- • Green hydrogen development as new business avenue(p.38)
- • Opportunity to expand solar power generation portfolio(p.30)
- • Growing interregional transmission capacity requirements(p.20)
- • Government policy support for renewable energy expansion and 500 GW target(p.177)
- • Large-scale green hydrogen and electrolyser market opportunity(p.177)
- • Government schemes and incentives for power sector infrastructure(p.177)
- • Transmission network expansion driven by renewable energy integration(p.161)
- • Growth in renewable energy sector through solar power projects(p.305)
- • Expansion of operations and maintenance services(p.305)
- • Growth through consultancy and utility services(p.305)
- • Leveraging established group infrastructure and complementary businesses(p.217)
- • Strong government capex cycle in infrastructure with healthy awarding activity(p.309)
- • Expansion of O&M services for solar plants and substations(p.308)
- • Growth in underground power distribution system design and implementation(p.308)
- • Diversification into cable and equipment testing services(p.307)
- • Bid-based tender system creates revenue uncertainty(p.29)
- • Project execution delays due to regulatory clearances and right of way issues(p.30)
- • Risk of schedule delays and liquidated damages impact(p.34)
- • Long gestation periods and project-specific risks in power sector(p.35)
- • Regulatory compliance and changing statutory requirements(p.38)
- • Economic slowdown impact on power sector demand(p.50)
- • Inflation impacting cost structure(p.50)
- • Natural disasters, epidemics and external shocks(p.47)
- • Changes in government policy affecting power sector(p.35)
- • Increased competition in EPC contracting sector(p.29)
- • Policy and regulatory changes affecting the power sector(p.177)
- • Natural calamities impacting project execution(p.177)
- • Economic recession risk affecting demand and project pipelines(p.177)
- • Regulatory and competitive risks in power transmission sector(p.305)
- • Dependence on utility company customers for revenue stability(p.305)
- • Extended payment cycles from government entities impacting cash flow(p.312)
- • Supplier concentration risk with top 10 suppliers representing significant portion of purchases(p.316)
- • Rising finance costs from borrowing increasing operational expenses(p.310)
- • Dependence on fixed deposit margins for performance guarantees affecting liquidity(p.312)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Rajendra Baldevbhai Patel | Promoter | 11.83% | — |
| Mr. Kurang Ramchandra Panchal | Promoter | 11.83% | — |
| Mr. Utsav Nehal Panchal | Promoter | 9.86% | — |
| Mr. Kaxil Prafulbhai Patel | Promoter | 9.86% | — |
| Mrs. Beena Panchal | Promoter Group | 5.10% | — |
| Mr. Krunal Panchal | Promoter Group | 6.56% | — |
| Mr. Nehal Panchal | Promoter Group | 6.41% | — |
| Mr. Praful Patel | Promoter Group | 2.63% | — |
| Mr. Vishal Patel | Promoter Group | 9.86% | — |
| Mrs. Kalaben Kantibhai Patel | Promoter Group | 4.60% | — |
| Mrs. Jyotsna Ramesh Patel | Promoter Group | 4.60% | — |
| Mr. Rajendra Baldevbhai Patel | Promoter | 11.83% | 8.49% |
| Mr. Kurang Ramchandra Panchal | Promoter | 11.83% | 10.00% |
| Mr. Utsav Nehal Panchal | Promoter | 9.86% | 8.33% |
| Mr. Kaxil Prafulbhai Patel | Promoter | 9.86% | 8.33% |
| Mr. Rajendra Baldevbhai Patel | Promoter/Whole Time Director | 11.83% | — |
| Mr. Kurang Ramchandra Panchal | Promoter/Managing Director | 11.83% | — |
| Mr. Kaxil Prafulbhai Patel | Promoter/Director and CFO | 9.86% | — |
| Mr. Utsav Nehal Panchal | Promoter/Director and CEO | 9.86% | — |
| Mr. Rajendra Baldevbhai Patel | Promoter | 11.83% | — |
| Mr. Kurang Ramchandra Panchal | Promoter | 11.83% | — |
| Mr. Kaxil Prafulbhai Patel | Promoter | 9.86% | — |
| Mr. Utsav Nehal Panchal | Promoter | 9.86% | — |
| Kurang Ramchandra Panchal | Promoter | — | — |
| Rajendra Baldevbhai Patel | Promoter | — | — |
| Kaxil Prafulbhai Patel | Promoter | — | — |
| Utsav Nehal Panchal | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.