Rahee Infratech files papers for Rs 420 crore IPO

Kolkata-based Rahee Infratech Limited, a railway civil engineering, manufacturing and construction company, has filed its draft red herring prospectus (DRHP) with market regulator SEBI to raise Rs 420 crore in fresh capital through an initial public offering (IPO), in which promoters will also dilute their stake by up to 2.7 million equity shares.

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 crore as a pre-IPO placement, which shall not exceed 20 per cent of the size of the fresh issue, officials said.

The IPO will have a face value of Rs 2 per equity share.

According to the filing, the proceeds from the fresh issue will be used to fund capital expenditure requirements, including Rs 50 crore for the purchase of machinery, equipment, and vehicles, Rs 280 crore for working capital requirements, and the remainder for general corporate purposes.

As of July 31, it had 16 bridge projects and 12 track projects under execution across 18 states in India. Its order book as of March 31, 2024, stood at Rs 2,296 crore.

Rahee operates four manufacturing facilities located in Howrah, West Bengal, and Sangareddy District, Telangana, along with two steel fabrication sites in Howrah, West Bengal, and Dhenkanal, Odisha . Pandrol Rahee, its associate company, has a fastenings manufacturing facility in Hyderabad, Telangana, and a castings facility in Barjora, West Bengal.

Rahee Infratech said it provides manufacturing and construction services, including design, supply, construction, and installation of tracks, turnkey bridge construction projects, including both substructure and superstructure, as well as the design, manufacture, and supply of turnouts, track devices, rail fastening systems, and sleepers.

Under its track works division, Rahee undertakes construction of ballasted and ballastless tracks. It has executed the longest rail tunnel in the country, located in Jammu and Kashmir, and has supplied ballastless tracks for Delhi Metro, Kolkata Metro, and Nagpur Metro.

Currently, the company is working on construction projects for the Mumbai Metro and Surat Metro. As of August 31, 2024, Rahee has constructed more than 258.9 km of ballastless tracks for metro rail projects and has an additional 191.8 km under construction.