Dhara Rail Projects Ltd IPO
Miscellaneous
Price Band
₹120 – ₹126
Lot Size
1000
Minimum Bid Quantity
2000
Minimum Investment
₹252000
Issue Size
₹50.2Cr
Opens
2025-12-23
Closes
2025-12-26
Listing
31-12-2025
Subscription Status
Qualified Institutional Buyers
71.3 x
Non-Institutional Investor
146.66 x
Retail Individual Investor
95.35 x
Total
102.85 x
IPO Details
Issue Type
EQUITY
Face Value
₹10
Tick Size
1
ISIN
INE2HJL01019
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Dhara Rail Projects Limited is engaged in executing contractual railway projects and related services in India. Its activities include annual maintenance contracts and repair services for railway rolling stock systems, covering train lighting equipment across all categories of rolling stock, including Vande Bharat trains, and maintenance of overhead equipment maintenance vehicles (tower wagons), power car equipment and HVAC systems used in coaches. The company also undertakes supply, installation, testing and commissioning of various electrical equipment across different types of rolling stock. It provides outsourcing services for passenger coaches, including en route operations and troubleshooting. Dhara Rail Projects mainly serves the Ministry of Railways through competitively tendered contracts or arrangements with original equipment manufacturers (OEMs) for specified periods. The company operates from its registered office at Girgaum, Mumbai, Maharashtra, and executes projects at different railway locations based on contracts obtained through government and rail authority procurement platforms. Use of proceeds: This is a fresh issue of shares. Therefore, the net proceeds from the fresh issue will go to the company. They will be utilised for the following purposes: Repayment and/or pre-payment, in full or part, of borrowing availed by the company — Rs 7 crore. To meet the working capital requirements of the company — Rs 30.5 crore. General corporate purposes.
Pros
- • The company is ISO 9001:2015 certified for its quality management systems.
- • Dhara Rail Projects claims to have a diversified order book of 60 ongoing projects across India, amounting to Rs 143.78 crore for Indian Railways as of December 12, 2025. In its industry, the company considers the number, size and duration of simultaneous projects as an indicator of anticipated future revenue.
- • The company claims to have a long-standing association with Indian Railways since its incorporation, with work obtained through competitively tendered direct contracts and pre-bid arrangements with various OEMs. It further claims that over time its reliance on OEM collaborations has reduced, with a greater share of business now coming from direct contracts across multiple zones, including Central, East Coast, Western, North Central and Eastern Railways, leading to lower revenue concentration in a single zone.
Cons
- • Dhara Rail Projects’ business and revenue are substantially dependent on the Ministry of Railways, Government of India. Revenue from direct railway contracts accounted for 74.60 percent, 69.18 percent, 31.44 percent and 35.18 percent of revenue from operations in the period ended September 30, 2025 and FY25, FY24 and FY23, respectively, while revenue from pre-bid OEM arrangements contributed 25.40 percent, 30.82 percent, 68.56 percent and 64.82 percent in the same periods. Any adverse change in railway policies, budget allocations, contract terms, or cancellation/foreclosure of such contracts can materially affect the company’s business, cash flows and financial performance.
- • Dhara Rail Projects operates in a labour-intensive segment and reports sizable employee benefit expenses. Employee benefit expenses accounted for Rs 8.53 crore (44.15 percent) of the company’s total expense for the period ended September 30, 2025; Rs 11.07 crore (28.07 percent) in FY25; Rs 10.92 crore (36.10 percent) in FY24 and Rs 9.17 crore (35.38 percent) in FY23. Any sustained increase in employee-related costs or difficulty in retaining and replacing staff could adversely affect the company’s profitability and ability to execute projects on time.
- • Revenue from the Central Railway Zone accounted for 22.22 percent, 37.76 percent, 65.90 percent and 70.53 percent of total revenue from operations in the period ended September 30, 2025 and FY25, FY24 and FY23, respectively. Any unfavourable operational, policy, political, social, or economic developments in the region, or the company’s inability to meaningfully expand into other geographies, could adversely affect its business, increase revenue concentration risk, and hurt overall financial performance.
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