Rajesh Power Services Limited[/caption]Rajesh Power Services has caught the market's attention with its IPO offering. On Day 2 of subscription, the IPO continues to generate significant interest, showcasing robust investor participation. With a blend of promising financials and strategic growth plans, this article dives into the details of the Rajesh Power Services IPO, including its subscription status, GMP, and other essential aspects.
Rajesh Power Services' IPO entered its second day on November 26, 2024, amid notable market interest. Aimed at raising ₹160.47 crore, the IPO features a price band of ₹319-₹335 per share. Investors are keenly watching the IPO's subscription status, grey market premium (GMP), and future prospects. Here’s a detailed look at how the IPO is shaping up.
Rajesh Power Services IPO Day 2: Subscription Status and Investor Response
How is the subscription progressing on Day 2?
By 11:05 AM on Day 2, the IPO was subscribed 2.68 times overall. The retail investor segment led the charge with a subscription rate of 4.06 times, while non-institutional investors (NII) followed at 3.04 times. However, the Qualified Institutional Buyers (QIB) portion had yet to see any bids.
- Retail Investors: Strong enthusiasm with 4.06x subscription.
- NII Category: Steady growth with 3.04x bids.
- QIB Segment: Awaiting significant participation.
Rajesh Power Services IPO GMP Today
What is the Grey Market Premium (GMP)?
As of today, the GMP stands at ₹70 per share. This suggests a potential listing price of ₹405, offering a 20.9% premium over the issue's upper price band of ₹335. However, the GMP has seen a decline from ₹90 over the past three sessions, reflecting cautious market sentiment.
Date | GMP (₹) | Potential Listing Price (₹) |
November 23, 2024 | 90 | 425 |
November 25, 2024 | 80 | 415 |
November 26, 2024 | 70 | 405 |
Breakdown of the IPO Structure
What does the IPO offer?
The Rajesh Power Services IPO includes a combination of fresh issue and offer for sale (OFS):
- Fresh Issue: 27.9 lakh shares aggregating ₹93.47 crore.
- Offer for Sale (OFS): 20 lakh shares worth ₹67 crore.
The promoters’ stake, currently at 100%, will reduce to 73.4% post-issue, ensuring wider public ownership. Allocations are structured as follows:
- QIBs: Up to 50%.
- Retail Investors: At least 35%.
- NIIs: A minimum of 15%.
Investor Highlights: Lot Sizes and Costs
What’s the minimum investment?
Investors can apply in lots, with the following minimum requirements:
- Retail Investors: Minimum lot size of 400 shares (₹1.34 lakh).
- HNIs: Minimum two lots, or 600 shares (₹2.68 lakh).
This allocation ensures accessibility across various investor categories while maintaining a balance between retail and institutional interest.
Strategic Utilization of Funds
Where will the funds be used?
Proceeds from the IPO will be allocated strategically:
- Capital Expenditure: Purchase of advanced cable identification and testing equipment.
- Solar Initiatives: Establishment of a 1300 KW DC Solar Power Plant.
- Green Hydrogen R&D: Development of in-house expertise and equipment.
- Working Capital: Addressing additional operational needs.
- General Corporate Purposes: Enhancing business capabilities.
Key Dates and Timeline
Event | Date |
IPO Opening Date | November 25, 2024 |
IPO Closing Date | November 27, 2024 |
Allotment Finalization | November 28, 2024 |
Refund Initiation | November 29, 2024 |
Listing Date | December 2, 2024 |
Company Overview
Who is Rajesh Power Services?
Founded in 1971, Rajesh Power Services is a leader in providing consultancy services to state transmission and distribution companies, as well as private utilities. The company has diversified its portfolio with investments in cutting-edge technologies, including IoT and renewable energy.
Key offerings include:
- Smart Feeder Management Systems (SFMS).
- Real-Time Monitoring Systems (RTMS).
- Solar Energy Data Management (SEDM).
For FY24, the company reported a 39.72% revenue growth and an impressive 285.44% increase in profit.
Rajesh Power Services IPO Day 2: Check Subscription Status, GMP & Other Details
The IPO's progress highlights strong investor confidence. The subscription rates, despite varying across segments, underscore its appeal. Meanwhile, the GMP trends provide a glimpse of the market’s expectations. For investors, Day 2 has reinforced the IPO’s potential as a medium- to long-term investment.
Expert Analysis and Recommendations
Should you invest in Rajesh Power Services IPO?
Dilip Davda of Chittorgarh.com offers an 'apply' rating, noting the company’s strong financial performance and reasonable pricing. With an order book worth ₹2,358.17 crore, the IPO presents a compelling case for investors seeking diversified exposure in the energy sector.
FAQs
1. What is the price band for Rajesh Power Services IPO?
The price band is set at ₹319-₹335 per share.
2. What is the GMP of Rajesh Power Services IPO today?
As of today, the GMP is ₹70 per share.
3. How many times was the IPO subscribed on Day 2?
The IPO was subscribed 2.68 times overall by 11:05 AM.
4. What is the minimum investment for retail investors?
Retail investors must apply for a minimum lot size of 400 shares, amounting to ₹1.34 lakh.
5. When will the shares be listed?
The shares will be listed on the BSE SME platform on December 2, 2024.
6. Who is the lead manager for the IPO?
Isk Advisors Pvt Ltd is the book-running lead manager for the issue.
Conclusion
The Rajesh Power Services IPO continues to draw significant attention on Day 2. With a promising GMP and robust subscription levels, the offering showcases the company’s growth potential and strategic focus. Whether you’re a retail investor or an institutional buyer, this IPO provides an exciting opportunity to invest in India’s dynamic power sector.
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