Rajesh Power’s IPO Gets Overwhelming Response, Shares List at 90% Premium
The IPO consisted of up to 47.9 million equity shares
December 2, 2024
Ahmedabad-based Rajesh Power Services (RPSL), a renewable and non-renewable energy solutions provider, has gone public with its Initial Public Offering (IPO) on the BSE SME platform. The IPO received an overwhelming response, with the issue being subscribed 59 times when it closed on November 27, 2024, and raised ₹1.6 billion (~$18.8 million)
The IPO consisted of up to 47.9 million equity shares with a face value of ₹10 (~$0.11) each, comprising:
- Fresh Issue: Up to 27.9 million equity shares
- Offer for Sale (OFS): Up to 20 million equity shares by existing shareholders
Additionally, up to 244,000 equity shares were reserved for the market maker to ensure post-listing liquidity.
The IPO of Rajesh Power Services Limited was structured to allocate up to 50% of the net issue to Qualified Institutional Buyers.
At least 15% of the net offer was reserved for Non-Institutional Investors, while Retail Individual Investors were allotted at least 35% of the net offer.
The company’s shares were listed at a substantial 90% premium over the IPO price on December 2, 2024, opening at ₹636.50 (~$7.51) per share compared to the issue price of ₹335 (~$3.95).
Ahead of the IPO, Rajesh Power raised ₹447.6 million (~$5.2 million) from anchor investors by selling 1.336 million equity shares at ₹335 (~$3.95) each. Prominent investors, including Moneywise Financial Services, Negen Undiscovered Value Fund, YR Investment Opportunities Fund, and IMAP India Capital Investment Trust, subscribed to the shares.
Several clean energy companies have issued IPOs this year. Two leading renewable energy companies—Premier Energies and Waaree Energies—raised about $850 million in their initial public offerings this year.
A few clean energy companies took the QIP (qualified institutional placement) route to raise money. Adani Energy Solutions raised equity capital twice this year through QIPs for $1.5 billion. Its second QIP in October received bids 4.2 times the deal size. JSW Energy raised $600 million earlier in the year.