Upcoming IPOs in 2024: Rahee Infratech, a prominent player in the railway civil engineering sector, has filed a draft red herring prospectus (DRHP) for its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) on September 30, 2023. This IPO is set to be an attractive investment opportunity, combining a fresh issue of shares with an offer for sale (OFS) by existing shareholders.
Rahee Infratech IPO Breakdown
The Rahee Infratech IPO will have a face value of ₹2 per equity share. It includes a fresh issue of equity shares amounting to ₹420 crore alongside an OFS of up to 2.7 million equity shares. The OFS will consist of significant contributions from key shareholders, including 1,059,843 shares from Pradeep Khaitan, 519,400 shares from Pawan Khaitan, 834,257 shares from Ravi Khaitan, 52,500 shares from Nandini Khaitan, and 314,857 shares from Shashi Khaitan.
Company Overview
Rahee Infratech is specialized in railway civil engineering, manufacturing, and construction activities. With its extensive experience, the company has excelled in bridge construction and track laying, having successfully completed 105 significant railway bridges and constructed over 258.9 km of ballastless tracks for metro rail systems. This solid experience not only underlines the company’s expertise but also its commitment to quality and safety in large-scale infrastructure projects.
Current Projects and Order Book
As of July 31, 2024, Rahee Infratech has 16 bridge projects and 12 track projects in progress across 18 states, which highlight the company’s robust operational capabilities and market reach. The company’s order book stood at a remarkable ₹2,296.27 crore as of March 31, 2024, indicating a healthy demand for its services. Looking ahead, Rahee Infratech aims to continue focusing on bridge and track projects while also exploring new areas such as viaducts for metro and railway infrastructure.
Clientele and Partnerships
Rahee Infratech boasts a diverse client list featuring major entities in the railway industry, including Rail Vikas Nigam and IRCON International. The company’s commitment to excellence is evidenced by these critical partnerships, which help enhance its operational capacity and technical know-how.
Manufacturing and Technological Collaborations
The company operates four manufacturing facilities located in West Bengal and Telangana, along with two steel fabrication sites in West Bengal and Odisha. Furthermore, Rahee Infratech has established strategic partnerships with international firms like Pandrol and Tracktec GmbH, enabling the adoption of advanced railway technologies and innovative construction methods.
Financial Performance
Rahee Infratech has shown impressive financial growth, with operational revenue skyrocketing at a compound annual growth rate (CAGR) of 31.69%, jumping from ₹556.84 crore in FY 2022 to ₹965.74 crore in FY 2024. The profit after tax (PAT) also demonstrated a significant increase, rising to ₹71.31 crore in FY 2024, up from ₹37.81 crore in FY 2022. These figures position Rahee Infratech as a financially viable option for potential investors looking to capitalize on the booming infrastructure sector.
IPO Management and Process
The Rahee Infratech IPO is being managed by IIFL Securities and Equirus Capital. The share sale will follow a book-building process, designed to ensure fair allocation across various investor categories. This structured approach is likely to attract a broad spectrum of investors, from retail participants to institutional investors.
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