Rajesh Power Services Lists at 90% Premium, Extends Gains on BSE SME

Rajesh Power Services Limited, established in 1971 and specializing in power transmission and distribution services along with EPC contracting, made its market debut on Monday, 2nd December 2024, with its shares listing on the BSE SME platform. The company serves major clients including GIFT City, Gujarat Metro Rail, Adani Renewables, and Reliance Industries.

Rajesh Power Services  Listing Details

• Listing Time & Price: At market open, Rajesh Power Services shares listed at ₹636.50 on BSE SME, marking a strong start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. Rajesh Power had set its IPO price band from ₹319 to ₹335 per share, with the final issue price being fixed at the upper end of ₹335.
• Percentage Change: By 10:16 AM IST, the stock was trading at ₹668.30, extending its gains to 99.49% over the issue price.

First-Day Trading Performance

• Price Range: Hit a high of ₹668.30 and low of ₹636.50 in early trading, with VWAP at ₹648.13.
• Market Capitalisation: As of 10:16 AM IST, the company's market capitalisation stood at ₹1,203.43 crore, with free float market cap at ₹228.65 crore.
• Trading Volume: The traded
• volume was 13.26 lakh shares with a traded value of ₹85.96 crore, with 100% deliverable quantity.

Rajesh Power Services  Market Sentiment and Analysis

• Market Reaction: Strong buying interest with the stock hitting the upper circuit at ₹668.30.
• Subscription Rate: The IPO was heavily oversubscribed by 59 times (as of November 27, 2024, 6:19:07 PM), with NIIs leading at 138.46 times subscription, followed by QIBs at 46.39 times, and retail investors at 31.96 times.
• Pre-listing Signals: Grey market premium had indicated a 47% premium before listing.

Rajesh Power Services Growth Drivers and Challenges

Expected drivers of future performance:

• Strong order book worth ₹2,358.17 crore
• Expansion into renewable energy sector
• Focus on solar and hydrogen electrolyzers
• 20+ years of EPC contracting experience

Potential challenges:

• High working capital requirements
• Project execution risks
• Sector competition
• Regulatory changes

Utilisation of IPO Proceeds 

Rajesh Power plans to use the funds for:

• Purchase of testing equipment
• Setting up 1300 KW DC Solar Power Plant
• Green Hydrogen technology development
• Working capital requirements
• General corporate purposes

Rajesh Power Services Financial Performance 

The company has shown strong growth:

• Revenue increased by 39.72% to ₹295.06 crore in FY2024 from ₹211.18 crore in FY2023
• Profit After Tax rose by 285.44% to ₹26.02 crore in FY2024 from ₹6.75 crore in FY2023
• H1 FY2025 showed revenue of ₹317.85 crore with PAT of ₹27.68 crore

As Rajesh Power begins its journey as a listed entity, market participants will closely monitor its ability to execute its large order book and expand into green energy sectors. The strong listing and continued momentum suggest positive investor sentiment towards the company's prospects in the power infrastructure sector.