New Delhi. Kolkata-based Rahee Infratech Limited, an integrated railway civil engineering, manufacturing and construction company in India, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO with a face value of Rs 2 per equity share is a mix of fresh issues of up to Rs 420 crore and an offer for sale of up to 2.7 million equity shares.
The offer for sale consists of the sale of equity shares up to 1,059,843 equity shares by Pradeep Khaitan, up to 519,400 equity shares by Pawan Khaitan, up to 834,257 million equity shares by Ravi Khaitan, up to 52,500 equity shares by Nandini Khaitan and up to 314,857 equity shares by Shashi Khaitan.
The company, in consultation with the book-running lead managers, may consider a further issue of equity shares through a private placement, preferential offer, or any other method aggregating up to Rs 84 crores, as pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The Offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.
The proceeds from the fresh issue to the extent of ₹ 50 crore for funding of capital expenditure requirements of our Company towards purchase of machinery, equipment and vehicles; Rs 280 crore for Funding the working capital requirements of the Company and rest for general corporate purposes.
Rahee Infratech Limited is focuses 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. It is an RDSO approved supplier of turnouts and special track devices to the Indian Railways.
As per the CARE report in its DRHP, it obtained a patent for improved switch expansion joint design duly head hardened in 2008, resulting in an increased life potential. It also patented a Zero Restraint Fastening System for steel sleepers on bridges in 2002. Both being licensed to the Indian railways for mass usage.
With the objective of introducing advanced fastening systems to the Indian Railways, in 2004, it entered into an agreement with Pandrol, a part of the Delachaux Group, headquartered in France, which is a global player in rail fastening systems and has provided services in more than 100 countries and 400 railways across the world
In 2022, it entered into a technical collaboration with Tracktec GmbH, Poland for manufacturing specialized turnouts and track device solutions. Through its collaboration it has the capability to providing high speed turnouts, semi-high speed turnouts, heavy haul turnouts with heavy
axle, Metro Railway and ballastless track turnout solutions and specialized swing nose crossings for rail and Metro Rail.
As of July 31, 2024, it has commissioned 105 major railway bridges in India including the under construction Khurda Road-Bolangir Project in Odisha, India has a length of over 5 kms.
Under the track works division, it undertakes the construction of ballasted and ballastless tracks and has executed the longest rail tunnel in the country in Jammu and Kashmir. Additionally it has provided ballastless tracks to Delhi Metro, Kolkata Metro and Nagpur Metro and is currently executing construction projects for the Mumbai Metro and Surat Metro. As of August 31, 2024, it has constructed more than 258.9 kms of ballastless tracks for the metro rails and has construction and 191.8 kms in progress
It also manufactures H-beam steel sleeper for bridges, steel channel sleeper for bridges and steel sleepers for standard track. As mentioned in the DRHP, it has designed, supplied and installed more than 2,400 sets of H-beam sleepers with fastening systems at the world’s highest steel arch rail bridge at Chenab in Jammu & Kashmir, India.
Rahee has four Manufacturing Facilities located in Howrah, West Bengal and Sangareddy District, Telangana and two steel fabrication sites located in Howrah, West Bengal and Dhenkanal, Odisha. Pandrol Rahee, its associate company has a fastenings manufacturing facility located in Hyderabad, Telangana, India and a castings facility in Barjora, West Bengal, India.
As of July 31, 2024, it had 16 bridge projects and 12 track projects under execution across 18 states in India. Its order book as of March 31, 2024 was ₹2296.27 crore. Going forward the company intends to maintain its focus on bridge and track works and also plan to pursue new areas in construction such as viaducts from Metro Rail and railway projects
Over the years it has developed strong relationships with its customers including Rail Vikas Nigam Limited, IRCON International Limited, Konkan Railway Corporation Limited and Texmaco Rail & Engineering Limited.
Rahee Infratech’s revenue from operations increased by 31.69% CAGR from ₹ 556.84 crore in Fiscal 2022 to ₹ 965.74 crore. Profit after tax increased to ₹ 71.31 crore for Fiscal 2024 from ₹ 37.81 crore for Fiscal 2022.
IIFL Securities Limited and Equirus Capital Private Limited are the book-running lead managers to the issue and KFin Technologies Limited is the registrar to the offer.
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