Rajesh Power Services Ltd on Monday staged a remarkable market debut as the stock got listed with a premium of 90 per cent, at Rs 636.50, on the BSE SME platform over its issue price of Rs 335. As the maiden session progressed, the SME counter went on to further scale a 5 per cent upper price band of Rs 668.30. This translated into a 99.49 per cent rally compared to its initial public offering (IPO) price of Rs 335.
Earlier in July this year, bourses decided to put an overall capping up to 90 per cent over the issue price for SME IPOs during the special pre-open session. Eventually, the counter can trade in the 5 per cent upper or lower circuit levels in the trade-to-trade segment.
"The price band cap is (+)(-) 5 per cent for the first 10 sessions when the stock trades in trade-to-trade segment. Thereafter the circuit band is fixed by the exchange which could be 10 per cent to 20 per cent," market expert Arun Kejriwal stated.
Around 13.70 lakh shares were last seen changing hands on BSE. Turnover on the counter came at Rs 88.85 crore, commanding a market capitalisation (m-cap) of Rs 1,203.43 crore. Last checked, there were 20,88,400 buy orders against sell orders of nil shares.
The Gujarat-based company's initial share sale was open between November 25 and November 27. At the time of closing, the SME issue was overall subscribed 59 times.
It recorded a standalone net profit of Rs 26.02 crore for the financial year ended on March 31, 2024 (FY24), up 285.48 per cent from Rs 6.75 crore recorded in the previous fiscal 2023. Revenue from operatations during the same period rose 37.55 per cent to Rs 285 crore from Rs 207.2 crore in the year-ago period.
As of March 2024, Rajesh Power has an order book of Rs 2,358.2 crore, which required to be executed over the three financial years.
The firm offers execution of turnkey projects, operation & maintenance, and consultancy services for power utility companies (both renewable and non-renewable segments). It has invested in HKRP Innovations Ltd (HKRP), which offers customised IT solutions for the energy sector.