The much-anticipated Dhara Rail Projects IPO opened for public subscription on December 23, 2025, and will continue until Friday, December 26, 2025. The IPO, listed under the SME platform, has been priced in a band of ₹20 to ₹126 per share, offering investors a chance to be part of the company’s growth story.
Market Performance on Day 1
The initial response from investors has been notable, reflecting confidence in the SME market segment:
- Overall subscription: 1.22x
- Retail investors: 0.33x
- Non-Institutional Investors (NII): 0.26x
- Qualified Institutional Buyers (QIBs): 3.50x
- Employee portion: 1.26x
By midday of December 23, the company had received bids for 32.38 lakh shares against an offer of 26.47 lakh shares, showing strong interest particularly from institutional investors.
IPO Snapshot
Dhara Rail Projects aims to raise ₹50.20 crore entirely through a fresh issue of 0.40 crore equity shares. Key IPO details include:
- Issue type: SME IPO, fully fresh issue
- Lot size: 1,000 shares
- Minimum investment for retail investors: ₹2.52 lakh at the upper price band
- Listing platform: NSE SME
- Tentative listing date: December 31, 2025
Allocation and allotment timeline:
- Basis of allotment: Expected on Monday, December 29, 2025
- Credit of shares & refunds: Scheduled for Tuesday, December 30, 2025
Ahead of the IPO, the company raised ₹14.28 crore from anchor investors on December 22, 2025, setting a positive tone for the public issue.
Utilisation of IPO Proceeds
The company has provided a clear plan for deploying the funds raised:
- Repayment/pre-payment of borrowings: ₹7 crore
- Working capital requirements: ₹30.50 crore
- Balance for general corporate purposes
This structured approach highlights the company’s focus on strengthening its balance sheet while supporting operational requirements.
About Dhara Rail Projects
Established in 2010, Dhara Rail Projects operates in the specialized railway services segment, catering to rolling stock and electrical systems. Key areas of operation include:
- Annual maintenance contracts and repair services
- Supply and commissioning of electrical equipment across trains
- Maintenance of train lighting and HVAC systems
- Servicing power car equipment and overhead equipment vehicles
- Outsourced assignments for coach operations and fault diagnosis
The company’s diverse portfolio and technical expertise make it a significant player in railway maintenance and electrical services.
Summary
The Dhara Rail Projects IPO presents a structured investment opportunity on the NSE SME platform. With clear plans for fund utilisation, strong initial subscription, and a robust business model in railway services, the IPO has caught the attention of institutional investors while slowly gaining traction among retail participants.
Investors can expect the basis of allotment on December 29, with shares credited and refunds processed by December 30, ahead of a tentative listing on December 31, 2025.
Source: Livemint
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