Dhara Rail Projects, a company that provides maintenance and electrical services for Indian railways, is opening its initial public offering (IPO) on Tuesday.
Key IPO Details
- Issue size: About Rs 50 crore (0.40 crore fresh shares)
- Price band: Rs 120 – Rs 126 per share (face value Rs 10)
- Listing: NSE SME, expected on 31 December
- Subscription period: Opens Tuesday, closes 26 December 2025
- Allotment date: 29 December; shares and refunds on 30 December
How to Apply
- Retail investors: Minimum 2 lots (2,000 shares) – roughly Rs 2.5 crore at the top of the band.
- High‑net‑worth individuals: Minimum 3 lots (3,000 shares) – about Rs 3.8 crore.
Company Overview
Founded in 2010, Dhara Rail Projects focuses on railway rolling‑stock services and electrical systems. Its work includes:
- Maintenance of train lighting, HVAC, and power‑car equipment
- Upkeep of overhead equipment and tower‑wagon vehicles
- Outsourced coach‑operation and troubleshooting services
Financial Snapshot
- Revenue growth: ~40% increase from FY24 to FY25
- Profit after tax (PAT): Jumped ~120% year‑on‑year, reaching Rs 6.53 crore in FY25
- Half‑year PAT (till Sep 2025): Rs 7.06 crore
- Order book (Sept 2025): About Rs 144 crore, giving visibility for near‑term revenue
Use of IPO Proceeds
- ~Rs 7 crore to repay or pre‑pay existing borrowings
- ~Rs 30.5 crore for working‑capital needs
- Remaining funds for general corporate purposes and growth initiatives
Market Sentiment
The grey‑market premium (GMP) is around 6%, indicating modest optimism without expectations of large short‑term price jumps. Investors appear to be focusing on the company’s fundamentals and upcoming order flow.
Quick Takeaway
Dhara Rail Projects offers exposure to India’s growing railway infrastructure sector. The IPO’s modest size, clear use of funds, and solid order backlog make it a straightforward option for investors who want a niche play in rail services.
Disclaimer
Remember, this is just an overview, not a recommendation. Do your own research and consider your risk tolerance before investing.