The Indian SME IPO market is heating up! This week, six companies are set to make their public market debut, including Rajesh Power Services, Rajputana Biodiesel, Apex Ecotech, Abha Power and Steel, Agarwal Toughened Glass India, and Ganesh Infraworld. With a combined target of ₹410 crores, these IPOs offer a diverse range of investment opportunities. Let’s explore what each IPO has to offer and why they could be worth your attention.
Rajesh Power Services IPO
Rajesh Power Services IPO is a public offering to raise ₹160.47 crores. This involves a fresh issue of shares worth ₹93.47 crores and an offer for sale of shares worth ₹67.00 crores. The IPO will open for subscription on November 25, 2024, and close on November 27, 2024. The shares are expected to list on the BSE SME on December 2, 2024. Investors can apply for a minimum of 400 shares, with a minimum investment of ₹134,000.
| Offer Price | ₹319 – ₹335 per share |
| Face Value | ₹10 per share |
| Opening Date | 25 November 2024 |
| Closing Date | 27 November 2024 |
| Total Issue Size (in Shares) | 4,790,000 |
| Total Issue Size (in ₹) | ₹160.47 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 400 Shares |
| Listing at | BSE, SME |
Objectives of the Rajesh Power Services IPO
The funds raised will be used for:
- Capital Expenditure:
- Purchase of cable identification, testing, and fault location equipment.
- Setting up a 1300 KW DC Solar Power Plant.
- Development of expertise in Green Hydrogen production and associated equipment like Electrolysers.
- Additional Working Capital Requirements.
- General Corporate Purposes.
Grey Market Premium Rajesh Power Services IPO (GMP)
As of November 25, 2024, the GMP for Rajesh Power Services IPO is ₹90. This indicates a potential listing price of ₹425 per share, offering a potential return of 26.87%.
Overview of Rajesh Power Services IPO Company
Established in 1971, Rajesh Power Services Limited is a leading provider of consultancy services to state transmission and distribution companies, private utilities, and industries. The company specializes in:
- EHV Underground Cables and Transmission Lines
- EHV AIS/GIS Substations
- HV/MV/LV Underground Cable Laying and Overhead MVCC Conductor Installation
- Distribution Network Revamping
- Power Supply Arrangements for Solar Power Plants
- Operation and Maintenance Services
Rajesh Power Services has a strong client base, including prominent names such as GIFT City, Gujarat Metro Rail Corporation, IFFCO, Adani Renewables, Reliance Industries, Torrent Power, and more.
Financial Strength
Rajesh Power Services has demonstrated strong financial performance in recent years. Between FY23 and FY24, the company’s revenue increased by 39.72%, and its profit after tax (PAT) surged by 285.44%. This growth trajectory highlights the company’s robust financial position and its potential for future growth
SWOT Analysis of Rajesh Power Services
| STRENGTHS | WEAKNESSES |
| Long-standing presence in the power sector since 1971 Diverse client base, including government entities and private giants. Strong revenue and profit growth trajectory. Expertise in renewable energy and IT-driven energy solutions. | Focus on project-based revenue, which can be cyclical. High capital expenditure requirements for scaling operations. |
| OPPORTUNITIES | THREATS |
Expansion in renewable energy with growing demand for solar and green hydrogen projects. Rising government focus on infrastructure development and sustainability. Potential for growth in IT-based power management solutions. | Competitive market with several established players in EPC and power consulting.Regulatory risks in the energy sector. Volatility in raw material and operational costs. |
Rajputana Biodiesel IPO
Rajputana Biodiesel is set to raise ₹24.70 crores through its IPO. The entire issue is a fresh issue of 19 lakh shares. The IPO will open for subscription on November 26, 2024, and close on November 28, 2024. The shares are expected to list on the NSE SME on December 3, 2024. Investors can apply for a minimum of 1000 shares, with a minimum investment of ₹130,000.
| Offer Price | ₹123 – ₹130 per share |
| Face Value | ₹10 per share |
| Opening Date | 26 November 2024 |
| Closing Date | 28 November 2024 |
| Total Issue Size (in Shares) | 1,900,000 |
| Total Issue Size (in ₹) | ₹24.70 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 1000 Shares |
| Listing at | NSE, SME |
Source: SEBI
Objectives of the Rajputana Biodiesel IPO
The funds raised from the IPO will be utilized for:
- Loaning to a subsidiary company for expansion of its manufacturing facility
- Funding working capital requirements
- General corporate purposes
Grey Market Premium of Rajputana Biodiesel IPO (GMP)
As of November 25, 2024, the GMP for Rajputana Biodiesel IPO is ₹70. This indicates a potential listing price of ₹200 per share, offering a potential return of 53.85%.
Company Overview
Founded in 2016, Rajputana Biodiesel is a biofuel producer and supplier. The company’s primary products include bio-diesel, glycerine, and fatty acids. Its manufacturing facility, located in Rajasthan, has an approved capacity of 30 kiloliters per day and a current installed capacity of 24 kiloliters per day.
Financial Strength
Rajputana Biodiesel has demonstrated strong financial growth. Between FY23 and FY24, the company’s revenue increased by 128%, and its profit after tax (PAT) surged by 168%. This i growth trajectory highlights the company’s robust financial position and its potential for future growth.
SWOT Analysis of Rajputana Biodiesel
| STRENGTHS | WEAKNESSES |
| Significant growth in revenue and profitability. Strong and diverse product portfolio in biofuels and related products. Established manufacturing facility with significant production capacity. | Single production facility. High reliance on subsidiary (NEPL) for scaling operations. |
| OPPORTUNITIES | THREATS |
Consistent growth in demand for biofuels due to environmental concerns and government policies. Potential for expansion into international markets for biodiesel and by-products. Increasing adoption of waste-to-energy solutions, such as used cooking oil. | Rising competition in the biofuels market. Price volatility in raw materials like cooking oil and methanol. Regulatory and policy risks in the renewable energy sector. |
APEX Ecotech IPO
Apex Ecotech is set to raise ₹25.54 crores through its IPO. The entire issue is a fresh issue of 34.99 lakh shares. The IPO will open for subscription on November 27, 2024, and close on November 29, 2024. The shares are expected to list on the NSE SME on December 4, 2024. Investors can apply for a minimum of 1600 shares, with a minimum investment of ₹116,800.
| Offer Price | ₹71 – ₹73 per share |
| Face Value | ₹10 per share |
| Opening Date | 27 November 2024 |
| Closing Date | 29 November 2024 |
| Total Issue Size (in Shares) | 3,499,200 |
| Total Issue Size (in ₹) | ₹25.54 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 1600 Shares |
| Listing at | NSE, SME |
Surce ApexEcotech
Objectives of the IPO
The funds raised from the IPO will be utilized for:
- Meeting working capital requirements
- General corporate purposes
- Meeting public issue expenses
Grey Market Premium (GMP)
As of November 25, 2024, the GMP for Apex Ecotech IPO is ₹0. This indicates a potential listing price of ₹73 per share.
Company Overview
Founded in 2009, Apex Ecotech specializes in providing water and wastewater treatment solutions. The company offers a range of services, including:
- Raw water treatment
- Effluent and sewage treatment
- Sludge dewatering
- Wastewater recycling
- Zero Liquid Discharge (ZLD) systems
- Operation and maintenance services
Apex Ecotech has a strong customer base, including renowned companies like Aditya Birla Group, Ashok Leyland, Apotex Research, and many more. The company has successfully implemented ZLD systems achieving high recovery rates for water reuse.
Financial Strength
Apex Ecotech has achieved significant financial growth. Its revenue and profit after tax (PAT) witnessed impressive growth rates of 53.1% and 88.31%, respectively, between FY23 and FY24. This strong financial performance positions the company for future success.
SWOT Analysis of Apex Ecotech
| STRENGTHS | WEAKNESSES |
| Strong expertise in water and wastewater treatment Diversified client base, including reputed companies Proven track record in delivering complex projects Focus on sustainable and eco-friendly solutions Strong financial performance and growth prospects | Availability of a limited number of key personnel Potential exposure to regulatory changes and environmental risks Competition from established players in the industry. |
| OPPORTUNITIES | THREATS |
Growing demand for water and wastewater treatment solutionsIncreasing focus on environmental sustainability Expansion into new markets and geographies Potential for partnerships and collaborations with other companies | Economic slowdown or recession Fluctuations in raw material prices Intense competition from established players Potential for technological disruptions |
Abha Power and Steel IPO
Abha Power and Steel is set to raise ₹38.54 crores through its IPO. This involves a fresh issue of shares worth ₹31.04 crores and an offer for sale of shares worth ₹7.50 crores. The IPO will open for subscription on November 27, 2024, and close on November 29, 2024. The shares are expected to list on the NSE SME on December 4, 2024. Investors can apply for a minimum of 1600 shares, with a minimum investment of ₹120,000.
| Offer Price | ₹75 per share |
| Face Value | ₹10 per share |
| Opening Date | 27 November 2024 |
| Closing Date | 29 November 2024 |
| Total Issue Size (in Shares) | 5,139,200 |
| Total Issue Size (in ₹) | ₹38.54 Cr |
| Issue Type | Fixed Price Issue IPO |
| Lot Size | 1600 Shares |
| Listing at | NSE, SME |
Objectives of the IPO
The funds raised from the IPO will be utilized for:
- Modernizing and upgrading manufacturing facilities
- Funding working capital requirements
- General corporate purposes
Grey Market Premium (GMP)
As of November 25, 2024, the GMP for Abha Power and Steel IPO is ₹0. This indicates a potential listing price of ₹75 per share.
Company Overview
Founded in 2004, Abha Power and Steel manufactures iron and steel products. The company’s product range includes mild steel, manganese steel, stainless steel, and low—and high-alloy castings.
The company’s manufacturing facility, located in Bilaspur, Chhattisgarh, has an installed capacity of 14,400 metric tonnes per annum. It caters to various industries, including steel, power, cement, and railways.
Financial Strength
Abha Power and Steel’s financial performance has been mixed. Between FY23 and FY24, the company’s revenue decreased by 6%, while its profit after tax (PAT) increased by 170%. This indicates potential growth opportunities but also highlights challenges in revenue growth.
SWOT Analysis of Abha Power and Steel
| STRENGTHS | WEAKNESSES |
| Experienced management team Diverse product rangeStrong customer base in various industries ISO 9001:2015 certification | Dependence on a few key customers Exposure to fluctuations in raw material prices Potential for operational challenges |
| OPPORTUNITIES | THREATS |
Growing demand for steel products in IndiaGovernment initiatives to boost the manufacturing sector Potential for expansion into new product segments and markets | Intense competition from established players Economic slowdown or recession Changes in government policies and regulations |
Agarwal Toughened Glass India IPO
Agarwal Toughened Glass India is set to raise ₹62.64 crores through its IPO, which is a fresh issue of 58 lakh shares. The IPO will open for subscription on November 28, 2024, and close on December 2, 2024. The shares are expected to list on the NSE SME on December 5, 2024. Investors can apply for a minimum of 1200 shares, with a minimum investment of ₹129,600.
| Offer Price | ₹105 – ₹108 per share |
| Face Value | ₹10 per share |
| Opening Date | 28 November 2024 |
| Closing Date | 2 December 2024 |
| Total Issue Size (in Shares) | 5,799,600 |
| Total Issue Size (in ₹) | ₹62.64 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 1200 Shares |
| Listing at | NSE, SME |
Objectives of the Agarwal Toughened Glass IPO
The funds raised from the IPO will be utilized for:
- Purchasing machinery for the existing manufacturing unit
- Repaying borrowings
- Meeting working capital requirements
- General corporate expenses
Grey Market Premium (GMP) of Agarwal Toughened Glass IPO
As of November 25, 2024, the GMP for Agarwal Toughened Glass India IPO is ₹10. This indicates a potential listing price of ₹118 per share, offering a possible return of 9.26%.
Company Overview of Agarwal Toughened Glass IPO
Incorporated in 2009, Agarwal Toughened Glass India is a manufacturer of tempered glass products. The company’s products find applications in various industries, including:
- Shower doors
- Refrigerator trays
- Mobile screen protectors
- Bulletproof glass for diving masks
- Plates and cookware
The company is ISO 9001:2015 certified and caters to a diverse clientele, including offices, hotels, institutions, banks, and more.
Financial Strength
Agarwal Toughened Glass India’s financial performance has been mixed. Between FY23 and FY24, the company’s revenue decreased slightly by 0.25%, while its profit after tax (PAT) surged by 795.66%, indicating significant improvement in profitability. However, revenue growth remains challenging.
SWOT Analysis of Agarwal Toughened Glass India
| STRENGTHS | WEAKNESSES |
| Extensive product portfolio catering to diverse industries. ISO 9001:2015 certification, ensuring quality management standards. Strong profitability growth (nearly 8x PAT increase year-on-year).Established testing and quality control processes. | Decline in revenue growth in FY 2023-24, reflecting possible challenges in market demand or pricing. Dependency on industrial clients, making it vulnerable to economic cycles. |
| OPPORTUNITIES | THREATS |
Growing demand for tempered glass across residential and commercial projects. Expansion opportunities in international markets for specialized glass products. Increasing usage of glass in innovative applications, such as smart homes and automotive technology. | Fierce competition from numerous players in the glass manufacturing industry. Vulnerability to fluctuations in raw material costs, which can erode profit margins. Potential impact of evolving regulations on industrial glass applications. |
Ganesh Infraworld IPO
Ganesh Infraworld is set to raise ₹98.58 crores through its IPO, which is a fresh issue of 118.77 lakh shares. The IPO will open for subscription on November 29, 2024, and close on December 3, 2024. The shares will list on the NSE SME on December 6, 2024. Investors can apply for a minimum of 1600 shares, with a minimum investment of ₹132,800.
| Offer Price | ₹78 – ₹83 per share |
| Face Value | ₹5 per share |
| Opening Date | 29 November 2024 |
| Closing Date | 3 December 2024 |
| Total Issue Size (in Shares) | 11,876,800 |
| Total Issue Size (in ₹) | ₹98.58 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 1600 Shares |
| Listing at | NSE, SME |
Objectives of the Ganesh Infraworld IPO
The funds raised from the IPO will be utilized for:
- Meeting long-term working capital requirements
- General corporate purposes
Grey Market Premium (GMP) of Ganesh Infraworld IPO
As of November 25, 2024, the GMP for Ganesh Infraworld IPO is ₹9. This indicates a potential listing price of ₹92 per share, offering a potential return of 10.84%.
Company Overview
Incorporated in 2017, Ganesh Infraworld is a construction company offering a wide range of construction services. The company specializes in:
- Civil and Electrical Infrastructure Projects: Construction of residential, commercial, and industrial buildings, as well as electrical infrastructure projects like substations and power lines.
- Road and Rail Infrastructure Development Projects: Construction of roads and railway infrastructure, including OHE installation.
- Water Infrastructure Development Projects: Construction of water distribution systems, water treatment plants, and reservoirs.
Ganesh Infraworld has a diverse client base, including government organizations and private companies. The company operates in various states across India.
Financial Strength
Ganesh Infraworld has demonstrated strong financial growth. Between FY23 and FY24, the company’s revenue increased by 116%, and its profit after tax (PAT) surged by 198%. This growth trajectory highlights the company’s robust financial position and its potential for future growth.
| STRENGTHS | WEAKNESSES |
| Diverse expertise across civil, electrical, rail, and water infrastructure projects. Strong financial performance with significant revenue and profit growth. Established relationships with key clients in multiple industries. | Dependence on government projects like Har Ghar Jal Mission, which are subject to policy changes. High operational costs in EPC services, potentially impacting margins. |
| OPPORTUNITIES | THREATS |
Increasing demand for infrastructure development in India, especially in water distribution and railways. Potential for expanding operations into untapped states and regions. Opportunities to secure contracts under government initiatives promoting infrastructure development. | Competition from established players in the construction and EPC sectors. Regulatory and environmental approvals could delay project timelines. Vulnerability to economic cycles impacting infrastructure investment. |
Conclusion:
As the Indian SME IPO market continues to gain momentum, this week’s offerings present a diverse range of investment opportunities. While these IPOs hold promise, investors must conduct thorough research or consult with financial advisors to make informed investment decisions. By understanding the fundamentals of each company, their growth potential, and the risks involved, investors can navigate this exciting market and potentially reap significant rewards.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
