Rajesh Power Services Limited provides consultancy to state transmission and distribution companies and private utilities and industries.
Rajesh Power Services IPO looks to raise Rs 160.47 crores.

About Rajesh Power Services Limited

• Rajesh Power Services Limited offers services to Renewable Power sector (solar power) and Non-Renewable Power sector.
• Rajesh Power Services Limited works as an Engineering, Procurement and Construction (EPC) contractor and providing services to power transmission and distribution utilities companies.
• Company offers services of implementation of Turnkey projects for laying Extra High Voltage cables & transmission lines, setting up Extra High Voltage (EHV) substation, Design and implication of underground power distribution system.
• Company is also in providing service of Operations and Maintenance which includes operating and maintaining solar plants and EHV substations.
• Further, the company is also engaged into providing Utility Services to power plants and power transmission companies, services include cable fault location and rectification, replacement and retrofitting of transformers and switch gears.
• RPSL also provides Consultancy Services with regard to designing of power substations and cable system.
• The Promoters of the company are Mr. Rajendra Baldevbhai Patel, Mr. Kurang Ramchandra Panchal, Mr. Kaxil Prafulbhai Patel And Mr. Utsav Nehal Panchal.

Financials: Rajesh Power Services IPO 

Anchor: Rajesh Power Services IPO 

Rajesh Power Services IPO : Salient Points

• The company is an accredited contractor with various state transmission and distribution utilities along with leading PSUs and reputed private clients.
• Rajesh Power Services also provides consultancy services related to designing of power substations and cable systems.
• Net issue proceeds use:
•  Rajesh Power Services intends to utilise Rs. 25.10 crore of the total IPO proceeds for capital expenditures, such as purchasing cable identification, testing, and fault location equipment (Rs. 17.94 crore), setting up a DC Solar power plant with a capacity of 1,300 kW (Rs.4.16 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 Rs.30 crore for additional working capital requirements, and the remaining capital will be utilised for general corporate purposes.
• Rajesh Power Services has invested in HKRP Innovations Limited, which provides customized IT-based solutions for the energy sector. The company provides Internet of Things (IoT), cloud-based solutions to power girds and the renewable energy sector. HKRP also provides innovative solutions like “Smart Feeder Management System” (SFMS), “Virtual Feeder Segregation” (VFS), “RTMS for Oil Well”, and “Solar Energy Data Management” (SEDM).
• Rajesh Power Services Ltd entered solar power generation by setting up 1-MW 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. The solar plant is currently operational and generating solar power and supplying power to state discoms Paschim Gujarat Vij Company Ltd (PGVCL).
• Clients

• Peers

• The company has a robust order book of Rs.2,358.17 crore, comprising projects related to Turnkey-based contracts, design engineering procurement, and substation construction.
• PE 10.9x (annualized) ; 19.xx ; PE Fy24: 23.2
• I intend to apply in Rajesh Power Services IPO . The sector enjoys good flow of orders and company’s growth has outpaced the sector. There is good valuation comfort vis-a-vis peers.
• GMP as reported on social media is around Rs. 105 (31%).
• Isk Advisors are the lead book running manager with few issues handled but mostlly these issues have fared well on the bourses. They have managed SME IPOs like Sattrix Information Security Limited, Vishwas Agri Seeds Limited. Sadhav Shipping Limited,Magson Retail And Distribution Limited,Sealmatic India Limited, Technopack Polymers Limited, Maruti Interior Products Limited IPO, Advait Infratech Limited.
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.