Rajesh Power Services redirects IPO funds to BESS facility

Rajesh Power Services Limited has redirected Rs 25.10 crore of initial public offering, or IPO, capital-expenditure proceeds to a battery energy storage system, or BESS, facility and associated infrastructure. Rajesh Power Services obtained shareholder approval on September 24, 2026, and reported nil utilisation of the full revised allocation at September 30, 2026.

Why did Rajesh Power Services change its IPO spending plan?

Rajesh Power Services replaced three originally stated capital-expenditure objects with a Rs 25.10 crore BESS facility and associated infrastructure. The board recommended the change in IPO objects at its September 3, 2026 meeting, and shareholders approved it through a special resolution at the company’s 17th annual general meeting on September 24, 2026.

The earlier capital-expenditure plan comprised Rs 17.94 crore for cable identification, testing and fault-location equipment, Rs 4.16 crore for a 1,300 kilowatt DC solar power plant, and Rs 3 crore for in-house green-hydrogen technical expertise and associated electrolyser equipment. These three amounts total Rs 25.10 crore, matching the amount assigned to the BESS facility under the modified IPO object.

The filing does not state a commercial reason for replacing the cable-equipment, solar-power and green-hydrogen projects. It says the variation was made under Section 27 of the Companies Act, 2013 and Rule 7 of the Companies (Prospectus and Allotment of Securities) Rules, 2014, which govern changes in IPO objects after issue.

Rajesh Power Services completed its IPO in financial year 2024-25, issuing 47.90 lakh equity shares at Rs 335 each. The issue included a fresh issue of 27.90 lakh shares aggregating Rs 93.47 crore and an offer for sale of 20 lakh shares aggregating Rs 67 crore; its shares were listed on BSE Limited’s SME platform from December 2, 2024.

How much had Rajesh Power Services spent on the BESS facility?

Rajesh Power Services had spent none of the Rs 25.10 crore allocated to the BESS facility and associated infrastructure by September 30, 2026. The IPO-proceeds statement records nil utilisation and an unutilised amount of Rs 25.10 crore for the modified object, leaving the entire allocation available at the reporting date.

The disclosure distinguishes the new BESS object from the three original capital-expenditure objects, whose entries no longer carry active utilisation or unutilised balances in the post-modification table. The confirmed comparison is therefore between the original Rs 25.10 crore combined capex allocation and the identical Rs 25.10 crore BESS allocation, not between spending on separately active projects.

The revised amount was unspent even though the modification received shareholder approval six days before the September 30, 2026 reporting date. Rajesh Power Services operates in one reportable segment, engineering, procurement and construction, or EPC, and states that all of its revenue is derived from domestic EPC projects.

Where did Rajesh Power Services use its other IPO proceeds?

Rajesh Power Services had utilised Rs 67.20 crore of Rs 93.46 crore in IPO proceeds by September 30, 2026. The remaining Rs 25.10 crore was exactly the balance assigned to the BESS facility and associated infrastructure after the approved variation in objects.

Working-capital requirements absorbed Rs 30 crore, general corporate expenses used Rs 22.86 crore, and issue-related expenses used Rs 14.34 crore. Unlike the BESS allocation, each of these categories had no unutilised balance at September 30, 2026, according to the utilisation statement.

Actual IPO expenses were Rs 14.34 crore, below the Rs 15.50 crore estimate in the prospectus. Of that actual expense, Rs 7.41 crore related to the offer-for-sale portion and was debited to selling shareholders; Rajesh Power Services said lower expenses and the recovery from sellers created Rs 8.56 crore available for working-capital requirements.

What do Rajesh Power Services’ latest results show?

Rajesh Power Services reported standalone revenue from operations of Rs 929.26 crore for the half year ended September 30, 2026, compared with Rs 637.81 crore in the half year ended September 30, 2025. Standalone profit after tax rose to Rs 78.49 crore from Rs 58.06 crore over the same year-earlier comparison.

The September 2026 half-year revenue was lower than Rs 990.12 crore in the half year ended March 31, 2026. Standalone profit after tax was also below the Rs 79.47 crore reported in that immediately preceding half year, while the filing does not identify BESS-related revenue or expenditure because the revised Rs 25.10 crore allocation remained unutilised.

On a consolidated basis, Rajesh Power Services reported profit after tax of Rs 79.22 crore for the half year ended September 30, 2026, compared with Rs 58.78 crore a year earlier. The consolidated figure included a Rs 0.93 crore share of profit from joint ventures, whereas the standalone results record a single domestic EPC reporting segment.

The audit committee reviewed, and the board approved, the unaudited standalone results on November 2, 2026. Rajesh Power Services also reported one investor complaint received and resolved during the September 2026 half year, while its half-year earnings per share were not annualised.

Conclusion

Rajesh Power Services has changed the destination of its IPO capital-expenditure allocation rather than increased the amount. The Rs 25.10 crore previously assigned across cable equipment, a 1,300 kilowatt solar plant and green-hydrogen capability is now designated for a BESS facility and associated infrastructure, with the full amount unspent at September 30, 2026.

The next point to watch is whether Rajesh Power Services begins using the Rs 25.10 crore BESS allocation in later IPO-proceeds disclosures. The September 30, 2026 statement leaves deployment of the modified object unresolved, while the approved plan identifies the BESS facility and associated infrastructure as its intended use.