Ahmedabad-based Rajesh Power files DRHP with BSE SME

The company intends to utilise Rs25.10 crore of the total IPO proceeds for capital expenditures, such as purchasing cable identification, testing, and fault location equipment (Rs17.94 crore), setting up a DC Solar power plant with a capacity of 1300 KW (Rs4.16 crore), and developing technical expertise in the production of Green Hydrogen and associated equipment such as electrolysers in-house (Rs3 crore).

Hyderabad: Rajesh Power Services Limited (RPSL), a leading service provider for the power sector, on Thursday announced the filing of its Draft Red Herring Prospectus (DRHP) with BSE SME. The company’s initial public offering comprises a fresh issuance of 27,90,000 equity shares, each with a face value of Rs10 and an offer for sale of up to 20,00,000 equity shares, each with a face value of Rs10, through the book-building route.

The offer for sale is made by the selling shareholders, Beena Panchal, Krunal Panchal, Nehal Panchal, Rajendra Baldevbhai Patel, Praful Patel, Vishal Patel, Kalaben Kantibhai Patel and Jyotsna Ramesh Patel.

ISK Advisors Private Limited is the sole Book Running Lead Manager to the Issue, and Bigshare Services Private Limited is the Registrar.

RPSL is in the business of EPC (Engineering, Procurement & Construction) contracting and providing Turnkey services to power transmission and distribution utilities / PSUs / Private Entities since decades. RPSL’s diverse range of services include EHV/HV/LV underground cable networks, EHV substations and O&M activities.

According to DRHP, the company intends to utilise Rs25.10 crore of the total IPO proceeds for capital expenditures, such as purchasing cable identification, testing, and fault location equipment (Rs17.94 crore), setting up a DC Solar power plant with a capacity of 1300 KW (Rs4.16 crore), and developing technical expertise in the production of Green Hydrogen and associated equipment such as electrolysers in-house (Rs. 3 crore). The company plans to use Rs30 crore for additional working capital requirements, and the remaining capital will be utilised for general corporate purposes.

Rajesh Power Services also provides consultancy services related to designing of power substations and cable systems. The company has a robust order book of Rs2358.17 crore, comprising projects related to Turnkey-based contracts, Design Engineering Procurement, and substation construction. The company is an accredited contractor with various State Transmission and Distribution Utilities along with leading PSUs and reputed private clients.

RPSL has invested in HKRP Innovations Limited, which provides customised IT-based solutions to the energy sector. The company provides Internet of Things (IoT) and cloud-based solutions to power girds and the renewable energy sector. HKRP provides innovative solutions like “Smart Feeder Management System” (SFMS), “Virtual Feeder Segregation” (VFS), “RTMS for Oil Well”, and “Solar Energy Data Management” (SEDM).

The company, under the leadership and vision of Kurang Panchal and Rajendra Baldevbhai Patel, entered into solar power generation by setting up 1MW solar power plant at Vill-Patdi in Surendra Nagar district in Gujarat in 2012. The plant was set up under one of the first solar schemes launched in 2012 by the Gujarat government under the leadership of Prime Minister Shri Narendra Modi (then Chief Minister of Gujarat). The Solar plant is currently operational and generating solar power and supplying power to PGVCL DISCOM.

The company has registered Rs284.96 crore in revenue from operations with a profit (PAT) of Rs26.02 crore in the fiscal year 2024, compared with Rs207.17 crore and a profit (PAT) of Rs6.75 crore in FY23.