Dhara Rail IPO sees strong demand on day 1; fully booked, GMP at 12%

Dhara Rail Projects IPO subscription status Day 1: The initial public offering (IPO) of Dhara Rail Projects opened for public subscription on Tuesday, December 23, 2025. The SME public issue is receiving a solid response from investors, as it was fully subscribed within a few hours of opening. The issue was subscribed 1.55 times at 02:20 PM, according to data from the National Stock Exchange (NSE). 

 

The issue received bids for 4.42 million equity shares compared to 2.85 million shares on offer. The demand was primarily driven by qualified institutional buyers (QIBs) who subscribed to the allotted quota by 3.5 times, followed by non-institutional buyers (NIIs) at 1.23 times. However, the retail investors' quota was booked only 76 per cent so far.  

 

Established in 2010, Dhara Rail Projects operates in a specialised segment catering to railway rolling stock services and electrical systems. The company is involved in providing annual maintenance contracts, repair and upkeep services, and supply and commissioning of electrical equipment across different categories of trains.

Dhara Rail Projects IPO GMP

On Monday, the unlisted shares of Dhara Rail Projects were trading at ₹141, commanding a premium of ₹15 or 12 per cent compared to the upper end of the price band of ₹120 to ₹126, according to sources tracking unofficial markets.

Dhara Rail Projects IPO details

The three-day subscription window for the maiden public offering will close on Friday, December 26, 2025. The basis of allotment of shares is likely to be finalised on Monday, December 29, 2025. Shares of Dhara Rail Projects will be listed on the NSE SME platform, tentatively on Wednesday, December 31, 2025.

 

Dhara Rail Projects IPO, worth ₹50.2 crore, comprises a fresh issue of 4 million equity shares. There is no offer for sale (OFS) component. 

 

Dhara Rail Projects has set the price band in the range of ₹120 to ₹126 per share, with a lot size of 1,000 shares. Retail investors would require a minimum investment amount of ₹2,52,000 shares to bid for at least two lots comprising 1,000 shares each.  

 

Bigshare Services is the registrar for the public offering, while Hem Securities is the sole book-running lead manager.

 

According to the red herring prospectus (RHP), the company plans to use ₹7 crore from the net fresh issue proceeds for repayment or prepayment of debt, and ₹30.5 crore to meet its working capital requirements. The remaining funds will be used for general corporate purposes.