IPO Details
Issue Date
--
Investment/lot
--
Price Range
--
Lot Size
--
IPO Size
N/A
Schedule of Rahee Infratech Ltd
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Rahee Infratech Limited IPO
Rahee Infratech Limited IPO is an IPO of TBA. It consists of an offer for sale of up to 2,780,857 equity shares and a fresh issue aggregating up to ₹420 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Rahee Infratech Limited IPO
- Funding of capital expenditure requirements of the company towards the purchase of machinery, equipment and vehicles.
- Funding the working capital requirements of the company.
- General corporate purposes.
Rahee Infratech Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Up to 2,780,857 equity shares |
Fresh Issue | Aggregating up to ₹ 420 crores |
EPS (₹) For the year ended March 31, 2024 | 5.83 |
Rahee Infratech Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not more than 50% of the Issue |
Non-Institutional Investors (NIIs) | Not less than 15% of the Issue |
Retail Individual Investors | Not less than 35% of the Issue |
Industry Outlook
The Indian Railways is undergoing a significant transformation, marked by modernisation efforts and substantial infrastructure investments. As of 2024, the Indian Railways is focused on enhancing its operational efficiency, safety, and passenger experience. The network has seen a marked increase in electrification, with over 80% of its routes now electrified, aiming for complete electrification by CY30.
Indian Railways is on track to achieve higher freight output, total revenue, and track construction for the financial year FY23-24, having already laid 5,100 kilometres of new tracks, averaging over 14 kilometres per day.
Company Information
Rahee Infratech Limited is focused on providing manufacturing and construction services including the design, supply, construction and installation of tracks, turnkey bridge construction projects including both substructure and superstructure and the design, manufacture and supply of turnouts and track devices, rail fastening systems and sleepers.
Rahee Infratech Ltd Strengths
Integrated manufacturing and construction operations enabling them to provide comprehensive solutions to their customers in the railway infrastructure sector.
As an integrated construction and manufacturing company providing “design-led manufacturing and construction” solutions to their customers, they provide design, engineering solutions, manufacturing, testing and construction to ensure that our products and structures meet robust standards in reliability, safety and performance. As part of our operations through their Manufacturing Division, they design and manufacture turnout and track devices which include turnout systems, rail expansion joints, complete layouts and turnout components such as crossing and switch devices for railway tracks, for highspeed, heavy haul, urban and commuting railways.
Strong technical capabilities enhanced by relationships with reputed global rail technology players.
They have expanded their business by entering into strategic collaborations with established multi-national companies which have diverse experience in the rail industry. They entered into an agreement with Pandrol, a part of the Delachaux Group, headquartered in France, which is a global player in rail fastening systems which has provided services in more than 100 countries and 400 railways across the world (Source: CARE Report), in 2004, to manufacture and supply advanced elastic fastening systems to railways and metros in India by forming Pandrol Rahee.
Long standing relationships with customers and strong order book providing revenue visibility.
They have long standing relationships with their customers and have worked with some of their customers for several years including railway divisions in India as early as 1996, IRCON International Limited as early as 2001, Rail Vikas Nigam Limited as early as 2006 and railways in Bangladesh as early as 2005.
As of July 31, 2024, they have 16 bridge projects and over 12 track projects which are under execution across 18 states in India.
Risks of Rahee Infratech Limited IPO
-
Their business and revenues are substantially dependent on railroad infrastructure projects undertaken or awarded by government authorities and other government-owned public sector undertakings. 77.31% of their revenue from operations in fiscal 2024 is from government authorities and entities related to the government. Any change in government policies or the restructuring of existing projects may adversely affect their business and the results of operations. Further, revenue from government contracts is prone to delays and longer working capital cycles, which could, in turn, adversely affect their business and the results of operations.
-
Their raw material cost constitutes a significant percentage of their total expenses. Any increase in the prices, availability and quality of raw materials could adversely affect their reputation, business, results from operations, financial conditions and cash flows.
-
Their manufacturing facilities are currently concentrated in the states of West Bengal, Odisha and Telangana in India. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in West Bengal, Odisha or Telangana could have an adverse effect on their business, results of operations, financial condition and cash flows.
All Financial Information about Rahee Infratech
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Rahee Infratech Limited | GPT Infraprojects Limited | Rail Vikas Nigam Limited |
|---|---|---|---|
Total Income for the year ended March 31, 2024 (₹ in crores) | 975.180 | 1024.883 | 23074.800 |
P/E | - | 30.25 | 72.09 |
EPS (Basic) (₹) | 10.99 | 4.97 | 7.55 |
Return on Net Worth (%) | 22.76% | 20.48% | 19.51% |
NAV per share (₹) | 48.29 | 25.92 | 41.95 |
Anchor Investor Information
The Anchor Investors shall Bid during the Anchor Investor Bidding Date, i.e., one Working Day prior to the Bid/Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
IIFL Securities Limited Equirus Capital Private Limited
Registrar for the IPO is KFin Technologies Limited
Business Model
The company earns its revenue through the following sources:
- Providing manufacturing and construction services including the design, supply, construction and installation of tracks, turnkey bridge construction projects including both substructure and superstructure and the design, manufacture and supply of turnouts and track devices, rail fastening systems and sleepers.
Company Growth Trajectory
Rahee Infratech Limited is an integrated railway civil engineering, manufacturing and construction company in India with a 31.69% CAGR growth in revenue from fiscal 2022 to fiscal 2024.
As of July 31, 2024, they have 16 bridge projects and 12 track projects which are under execution across 18 states in India. Their order book as of March 31, 2024 was ₹2296.270 crores.
Company Market Position
Rahee Infratech Limited has been awarded as the “Company of the year (Construction)”by Outlook Business and “Excellence in Rail Infra Development” by the UrbanInfra Group.
As per the CARE Report, as of July 31, 2024, the company has constructed more than 185 kms of ballastless and ballasted tracks for Metro Rail in India which constitutes more than 19.5% of the total operational metro network of 945 kms in India (Source: CARE Report), with construction of 140 kms of ballastless track in progress for Metro Rail in India, which constitutes about 20% of the ~ 600+ kms under-construction metro network in India.
Rahee Infratech Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 556.838 | 785.821 | 965.737 |
Profit/ loss Before Tax (₹ crores) | 62.182 | 68.141 | 82.397 |
Net profit / (loss) (₹ crores) | 37.807 | 49.645 | 71.311 |
EBITDA (₹ crores) | 88.575 | 100.587 | 124.123 |
EPS (₹) | 5.83 | 7.65 | 10.99 |
Rahee Infratech Limited Company Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit/(loss) before tax (₹crores) | 62.182 | 68.141 | 82.397 |
Net Cash from Operating Activities (₹ crores) | 31.954 | 27.812 | 3.081 |
Net Cash from Investing Activities (₹ crores) | (28.786) | (32.337) | (48.419) |
Net Cash from Financing Activities (₹ crores) | 14.571 | 0.093 | 30.666 |
Cash and Cash Equivalents (₹ crores) | 29.041 | 24.609 | 9.937 |
How To Check Allotment Status of Rahee Infratech Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Rahee Infratech Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the KFin Technologies Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Rahee Infratech Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Rahee Infratech Ltd IPO FAQs
What is the Rahee Infratech Limited IPO?
The Rahee Infratech Limited IPO has an issue size of TBA. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Rahee Infratech Limited IPO?
KFin Technologies Limited is the registrar for this IPO.
Where can I read more about Rahee Infratech Limited business?
You may read more about Rahee Infratech Limited and its IPO from the company’s draft red herring prospectus (DRHP) here
