Rahee Infratech Limited Files for Rs 420 Crore IPO

Kolkata-based Rahee Infratech Limited has filed its draft red herring prospectus with SEBI to raise Rs 420 crore through an IPO. The funds will be used for capital expenditure, working capital, and corporate purposes. The company is involved in various railway construction projects across India.

Kolkata-based Rahee Infratech Limited, specializing in railway civil engineering, manufacturing, and construction, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise Rs 420 crore in fresh capital through an initial public offering (IPO). The IPO will include the dilution of the promoters' stake by up to 2.7 million equity shares.

The company, along with book-running lead managers, is considering a further issue of equity shares through private placement or preferential offers, potentially adding up to Rs 84 crore, not exceeding 20 percent of the fresh issue's size. The IPO will have a face value of Rs 2 per equity share.

The raised proceeds are earmarked for capital expenditure, including Rs 50 crore for machinery and equipment, Rs 280 crore for working capital, and remaining funds for general corporate purposes. As of late July, Rahee is undertaking bridge and track projects across 18 Indian states, with its order book totaling Rs 2,296 crore by March 2024.