Dhara Rail Projects IPO set for listing as GMP signals 10% premium

Dhara Rail Projects is set to make its debut on the NSE SME platform today, with grey market trends indicating a premium of around 10% over the issue price. The signalling comes after the Rs 50.2 crore IPO drew strong investor interest across categories, underscoring continued appetite for railway-linked infrastructure plays in the SME segment.

The IPO, which was priced in a band of Rs 120–126 per share, was entirely a fresh issue, with proceeds earmarked primarily for working capital needs and partial repayment of borrowings. At the upper end of the band, the company is valued at a pre-IPO market cap of about Rs 190 crore.

The issue witnessed heavy oversubscription, closing at nearly 112 times on the final day of bidding. Non-institutional investors led the demand, subscribing close to 200 times their allocated portion, while retail investors bid nearly 98 times the shares on offer. Qualified institutional buyers, excluding anchor investors, subscribed over 71 times, reflecting broad-based participation.


Dhara Rail Projects operates in a niche but essential segment of the railway ecosystem. Incorporated in 2010, the company provides annual maintenance contracts and repair services for railway rolling stock systems, including train lighting, HVAC systems, power car equipment, and overhead equipment maintenance vehicles.

Its scope of work also includes supply, installation, testing, and commissioning of electrical equipment for rolling stock, along with outsourced services for coach operations and troubleshooting.

The company works largely with the Ministry of Railways through tenders and collaborations with original equipment manufacturers, giving it steady exposure to government-led railway spending. As of September 2025, Dhara Rail Projects reported an order book of Rs 144.1 crore, providing medium-term revenue visibility.

Financially, the company has posted sharp improvement in recent years. Revenue for FY25 rose 40% year-on-year to Rs 48 crore, while profit after tax more than doubled to Rs 6.53 crore. For the six months ended September 2025, the company reported a PAT of Rs 7.06 crore.

The company raised Rs 14.28 crore from anchor investors ahead of the issue. Proceeds from the IPO will be used largely to meet working capital requirements, which is critical for contract execution, and to reduce debt, potentially improving cash flows going forward.

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