Thu Oct 24 11:37:57 UTC 2024: Rajesh Power Services Ltd (RPSL) has filed a draft red herring prospectus (DRHP) with BSE SME for its initial public offering (IPO). Key details include:

1. **IPO Structure**: The IPO consists of a fresh issuance of 27.90 lakh equity shares and an offer for sale of up to 20 lakh equity shares, all with a face value of Rs. 10, via the book-building route.

2. **Selling Shareholders**: The offer for sale is made by various shareholders including Beena Panchal and Krunal Panchal among others.

3. **Business Focus**: RPSL specializes in EPC contracting and turnkey services for power transmission and distribution, including services like underground cable networks and substations.

4. **Utilization of Proceeds**: The company aims to utilize Rs. 25.10 crore from the IPO for:
– Purchasing cable equipment (Rs. 17.94 crore)
– Setting up a 1,300 kW DC Solar power plant (Rs. 4.16 crore)
– Developing expertise in producing green hydrogen (Rs. 3 crore)
Additionally, Rs. 30 crore is allocated for working capital and the remaining funds for corporate purposes.

5. **Order Book**: RPSL has a substantial order book valued at Rs. 2,358.17 crore, covering various contracts in design, engineering, and construction related to power substations.

6. **Consultancy Services**: The company also offers consultancy for designing power substations and cable systems, and is an accredited contractor with several state utilities and PSUs.

7. **Investment in Technology**: RPSL has invested in HKRP Innovations Ltd, which delivers IT-based solutions for the energy sector, including IoT and cloud solutions.

8. **Solar Energy Initiatives**: The company began solar power generation in 2012, operating a 1-MW solar plant in Gujarat, supplying power to local discoms.

Overall, RPSL’s IPO aims to enhance its capital capabilities for growth in the power sector while also expanding into renewable energy solutions.

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