Last day! Dhara Rail IPO closes today; subscription rises 21x, GMP 13%

Dhara Rail Projects has been subscribed to over 20 times so far, led by robust participation from all the investor categories

Dhara Rail Projects IPO Day 3 subscription status: With the subscription window set to close today, the initial public offering (IPO) of Dhara Rail Projects continues to attract overwhelming demand. The public issue has been subscribed to over 20 times so far, led by robust participation from all the investor categories.

 

As per NSE data, the Dhara Rail IPO received bids for 58.99 million shares against 2.85 million shares on offer as of 12:45 PM on December 26. This translates into an overall subscription of 20.69 times.

 

NIIs were most aggressive, oversubscribing their quota by 40.70 times, followed by retail investors at 19.61 times. The subscription from qualified institutional buyers (QIBs) stood at 16.56 times.

 

 

Dhara Rail Projects operates in a specialised segment catering to railway rolling stock services and electrical systems. It provides annual maintenance contracts, repair and upkeep services, and supply and commissioning of electrical equipment across different categories of trains.

Dhara Rail Projects IPO GMP today

The upbeat market mood was also mirrored in the grey market. Dhara Rail’s unlisted shares were trading at ₹143, signalling a grey market premium (GMP) of ₹17 or 13.5 per cent over the upper price band on the final day of bidding.

Dhara Rail Projects IPO details

The ₹50.2-crore IPO comprises a fresh issue of 4 million equity shares. The public issue is priced in the ₹120–₹126 per share range with a lot size of 1,000 shares. A retail investor needs a minimum investment amount of ₹2,52,000 to apply for at least two lots.

 

Bigshare Services is acting as the registrar for the public offering, while Hem Securities is serving as 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. 

Dhara Rail  IPO timeline

With the subscription closing today, the basis of allotment is expected to be finalised on Monday, December 29. Successful bidders may receive shares in their demat accounts by December 30. Dhara Rail is scheduled to list on the NSE SME platform on Wednesday, December 31, marking its debut on Dalal Street.