DHARA RAIL PROJECTS IPO

DHARA RAIL PROJECTS IPO

Snapshot of the IPO

Important Dates for Investors

• Opening Date: 23 Dec 2025
• Closing Date: 26 Dec 2025
• UPI Payment Deadline: 26 Dec 2025 (5 PM)
• Allotment Announcement: 29 Dec 2025
• Refund Processing: 30 Dec 2025
• Demat Credit: 30 Dec 2025
• Stock Market Listing: 31 Dec 2025
• Mandate Validity End: 11 Jan 2026
• Anchor Investor Lock-in Release (50%): 28 Jan 2026
• Anchor Investor Lock-in Release (Remaining): 28 Mar 2026

*Dates may be revised as per official updates.

Exploring Dhara Rail Projects: Company Overview

Founded in April 2010 as a private entity and subsequently converted into a public limited company in August 2025, Dhara Rail Projects Limited (DHARAIL) stands as an ISO 9001:2015 certified enterprise deeply entrenched in India’s dynamic railway infrastructure and services sector. The company, promoted by Mr. Tejas Lalit Mehta, Mrs. Jagruti Tejas Mehta, and Ms. Dhara Tejas Mehta, has carved a niche for itself through its comprehensive involvement in executing contractual railway projects and delivering specialized maintenance and repair services.

At its core, DHARAIL specializes in a wide array of services crucial for the upkeep and modernization of railway systems. This includes executing annual maintenance contracts and providing meticulous repair services for railway rolling stock systems, train lighting equipment, overhead equipment (OHE) maintenance vehicles, power car equipment, and advanced HVAC systems. Furthermore, the company is proficient in the supply, installation, testing, and commissioning of various electrical equipment tailored for diverse railway applications.

Dhara Rail Projects primarily caters to the Ministry of Railways, Government of India, securing significant contracts through competitive tenders. The company also collaborates strategically with original equipment manufacturers (OEMs), enhancing its service delivery capabilities. Its operational model is firmly built on long-term service contracts, leveraging deep technical expertise, and adhering to stringent compliance standards. The company’s strong foundation is bolstered by its experienced management team, well-established relationships within the Indian Railways ecosystem, and a proven capability to service modern rolling stock, including advanced train systems like the Vande Bharat Express.

IPO Issue Structure and Capital Inflow

The Dhara Rail Projects IPO is structured to raise capital entirely through a fresh issue of shares, signaling the company’s intent to channel all proceeds directly into its operational and strategic objectives. This approach ensures that the entire corpus generated from the IPO will contribute to the company’s growth trajectory.

The fresh issue component, comprising the entirety of the funds raised, aims to bolster the company’s financial position, supporting its expansion plans and ongoing operational requirements. This indicates a direct infusion of capital for internal growth and development.

Strategic Allocation of IPO Proceeds

The capital raised through the IPO will be strategically deployed across several key areas, designed to strengthen Dhara Rail Projects’ financial health, enhance its operational capabilities, and support its long-term growth objectives. The planned utilization reflects a balanced approach towards managing existing liabilities and funding future expansion initiatives.

A significant portion, approximately 60.76%, is earmarked for working capital requirements. This allocation is crucial for ensuring smooth day-to-day operations, managing project cycles, and maintaining liquidity. Additionally, a notable 13.94% will be utilized for the repayment or pre-payment of existing borrowings, which could lead to improved financial stability and reduced interest expenses. The remaining 25.30% is allocated for general corporate purposes, providing the company with flexibility to pursue various strategic initiatives, invest in technology, or address unforeseen business needs as they arise.

Dhara Rail Projects: Distinctive Advantages

Dhara Rail Projects has cultivated a set of robust competitive strengths that position it favorably within the Indian railway sector. These strengths underscore its operational excellence, market relationships, and future growth potential.

• Extensive Industry Experience: With over a decade of operational experience in railway maintenance and electrical services, the company possesses deep domain knowledge and expertise crucial for navigating complex projects and service demands.
• Quality and Compliance Excellence: Being an ISO 9001:2015 certified entity, Dhara Rail Projects demonstrates a strong commitment to quality management and adheres to rigorous compliance systems, enhancing client trust and operational efficiency.
• Strategic Relationships: The company benefits from established and long-standing relationships with key stakeholders, including the Indian Railways and leading OEM partners, which are vital for securing contracts and collaborative growth opportunities.
• Advanced Rolling Stock Servicing: Its capability to service modern rolling stock, including high-speed trains like the Vande Bharat, highlights its technical prowess and adaptability to evolving railway technologies.
• Experienced Promoter-Led Management: The company’s operations are guided by a promoter-led management team possessing profound industry expertise, ensuring strategic direction and efficient execution of projects.

Key Considerations and Potential Risks

While Dhara Rail Projects exhibits significant strengths, investors should also be aware of certain potential risk factors that could influence its performance and growth trajectory.

• High Dependence on Indian Railways: A substantial portion of the company’s revenue is derived from contracts with the Indian Railways. Any slowdown in railway spending or a shift in procurement policies could significantly impact its financial performance.
• Exposure to Government Policies: The business is susceptible to changes in government policies, regulations, and railway budget allocations, which can directly affect project pipeline and profitability.
• Working Capital Management: The nature of contractual projects in infrastructure often entails high working capital needs. The company’s dependence on timely receivables for cash flow management poses a risk, as delays could affect liquidity.
• Competitive Tendering Environment: Operating in a competitive tendering environment means the company faces constant pressure on pricing and margins from other players, which could impact its profitability.
• Compliance and Safety Norms: Non-compliance with strict quality or safety norms specific to the railway sector could lead to penalties, reputational damage, and loss of future contract opportunities.

Live Subscription Status: Investor Interest

The initial subscription data provides an early indication of investor interest in the Dhara Rail Projects IPO. These figures reflect the demand across various investor categories as of the reported time.

As of 05:00 PM on December 23, 2025, the IPO has witnessed an overall subscription of 2.54 times. Qualified Institutional Buyers (QIB) have shown significant interest, subscribing 4.55 times their reserved portion, while Non-Institutional Investors (NII) have subscribed 2.35 times. Retail Individual Investors (RII) have subscribed 1.47 times. These early numbers will evolve throughout the subscription period. Investors should note that Grey Market Premium (GMP) figures, often reported unofficially, are speculative and should not be the sole basis for investment decisions. Official exchange data on subscription levels remains the most reliable indicator of demand.

Participating in the Dhara Rail Projects IPO

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes.