Rajesh Power Services is set to launch its initial public offering (IPO) from November 25 to November 27, 2024, with a price band fixed at ₹320 to ₹335 per share. The company, a prominent player in the power sector, specializes in engineering, procurement, and construction services for power transmission and distribution. With a significant revenue growth of 39.72% and an impressive profit increase of 285.44% in the last fiscal year, Rajesh Power Services is well-positioned for future expansion. The IPO aims to raise approximately ₹160.5 crore, which will be utilized for capital expenditures and working capital requirements.
₹130
₹335
₹636.50
Expert Opinions
Market sentiment for the Rajesh Power Services IPO is favorable, reflecting strong investor interest in the growing power sector. Company strengths include a robust track record in executing turnkey projects and a significant order book of ₹2,358.2 crores, indicating solid future revenue potential. The company has demonstrated impressive financial performance, with revenue growth of 39.72% and profit after tax surging by 285.44% in the last fiscal year.
However, potential risks and challenges include competition from established players and operational risks associated with large-scale projects. The valuation analysis places the IPO price band at ₹320-335 per share, which appears reasonable given its growth metrics and market position. From a long-term investment perspective, Rajesh Power Services is well-positioned to benefit from increasing investments in renewable energy and infrastructure development.
Investor Considerations
Investors considering the Rajesh Power Services IPO should evaluate several key aspects. Company performance and fundamentals indicate strong growth, with revenue rising by 39.72% and profit after tax increasing by 285.44% in the last fiscal year, showcasing operational efficiency. The sector outlook is promising, driven by India’s ambitious renewable energy targets and increasing investments in power infrastructure, positioning the company to capitalize on these trends.
The IPO valuation, set between ₹320 and ₹335 per share, appears reasonable given the company’s robust financial metrics and growth potential. Growth prospects are significant, with plans to expand into solar energy and green hydrogen production, aligning with global sustainability goals. However, investors should be aware of risk factors, including competition from established players and operational challenges associated with large-scale projects. A long-term investment horizon is advisable, as Rajesh Power Services is well-positioned to benefit from ongoing developments in the energy sector, making it an attractive investment opportunity.
| Date | GMP | Trend |
|---|---|---|
| 01 Dec 2024 11.20 | ₹130 | --- |
| 30 Nov 2024 13.10 | ₹130 | Up |
| 29 Nov 2024 10.59 | ₹100 | Up |
| 28 Nov 2024 10.40 | ₹80 | --- |
| 27 Nov 2024 11.26 | ₹80 | Up |
| 26 Nov 2024 10.56 | ₹60 | Down |
| 25 Nov 2024 16.20 | ₹70 | Down |
| 23 Nov 2024 11.21 | ₹90 | Down |
| 22 Nov 2024 17.59 | ₹100 | --- |
| 21 Nov 2024 10.56 | ₹100 | Up |
| 18 Nov 2024 12.33 | ₹00 | --- |
FAQs
The Grey Market Premium showed limited accuracy in predicting Rajesh Power Services’ listing performance. While the GMP of ₹150 predicted a significant premium of 44.78% over the issue price, the stock actually delivered a much stronger gain of 90%. With a substantial prediction error of 31.24%, the GMP correctly predicted the positive listing direction but significantly underestimated the magnitude of gains, demonstrating its limitations as a precise price predictor in this case.
Rajesh Power Services IPO Current GMP is ₹130.
Rajesh Power Services IPO Expected Returns is 38.81%.
Rajesh Power Services IPO estimated listing price is ₹465.