Dhara Rail Projects IPO – Full IPO Overview
Dhara Rail Projects Limited is set to enter the capital markets through its Initial Public Offering (IPO) with the objective of raising funds to support business expansion, working capital requirements, and general corporate purposes. The IPO is expected to be listed on the SME platform, offering investors exposure to India’s rapidly expanding railway and infrastructure development sector.
The issue aims to strengthen the company’s execution capacity and financial flexibility as railway modernisation and public infrastructure spending continue to rise.
Dhara Rail Projects Limited, a specialized player in the railway infrastructure and rolling stock maintenance sector, is set to launch its Initial Public Offering (IPO) on December 23, 2025. The company, which provides critical services to Indian Railways—including maintenance for the elite Vande Bharat trains—aims to raise ₹50.20 crore to fund its next phase of growth.
Company Overview
Dhara Rail Projects Limited operates in the railway infrastructure and construction segment, undertaking projects related to railway track works, electrification, signalling support, and allied civil and engineering services.
The company primarily caters to government bodies, public sector undertakings, and infrastructure contractors, participating in India’s railway expansion, upgradation, and maintenance programmes.
With a project-oriented execution model, Dhara Rail Projects focuses on timely delivery, compliance, and technical execution.
Established in 2010, Mumbai-based Dhara Rail Projects has built a reputation for high-precision engineering and maintenance services. The company specializes in:
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Rolling Stock Maintenance: Repair and AMC (Annual Maintenance Contracts) for train lighting, HVAC systems, and power car equipment.
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Specialized Servicing: Maintenance for Overhead Equipment (OHE) vehicles and Tower Wagons.
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Infrastructure Projects: Supply, Installation, Testing, and Commissioning (SITC) of electrical equipment for various railway applications.
With a robust order book valued at approximately ₹144 crore (as of September 2025), the company is a key beneficiary of the Indian government’s aggressive push toward railway modernization.
IPO Details & Key Dates
The Dhara Rail Projects IPO is a Book Built Issue and will be listed on the NSE SME (NSE Emerge) platform.
| Event | Date (Tentative) |
| IPO Open Date | December 23, 2025 |
| IPO Close Date | December 26, 2025 |
| Allotment Finalization | December 29, 2025 |
| Refunds/Credit of Shares | December 30, 2025 |
| Listing Date | December 31, 2025 |
Price Band, Lot Size & Investment
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Price Band: ₹120 to ₹126 per equity share.
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Face Value: ₹10 per share.
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Lot Size: 1,000 shares (Note: Minimum retail application is 2,000 shares/2 lots as per SME rules).
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Minimum Retail Investment: ₹2,52,000.
Financial Performance & Growth
Dhara Rail Projects has shown a steady upward trajectory in its financial health. For FY25, the company reported a total revenue of ₹44.48 crore and a significant jump in Profit After Tax (PAT) to ₹6.53 crore, up from ₹1.33 crore in the previous year. This “boosted bottom line” reflects the company’s increasing involvement in high-margin maintenance contracts for premium train segments.
Objects of the Issue:
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Working Capital: ₹30.50 crore to support large-scale ongoing and upcoming contracts.
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Debt Reduction: ₹7.00 crore for the repayment or pre-payment of existing borrowings.
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General Corporate Purposes: For operational flexibility and brand-building activities.
Business Model & Operations
Dhara Rail Projects follows a contract-based B2B business model, where revenues are generated through:
- Execution of railway infrastructure projects
- Track laying, repair, and maintenance works
- Electrification and related civil engineering activities
- Project execution on EPC or sub-contract basis
The company’s revenues are largely linked to order book strength, execution timelines, and infrastructure spending cycles.
Services & Project Capabilities
The company’s service portfolio typically includes:
- Railway track construction and rehabilitation
- Electrification and associated civil works
- Signalling and allied railway infrastructure support
- Earthwork, foundations, and project logistics
Dhara Rail Projects emphasises technical expertise, safety compliance, and on-ground execution efficiency, which are critical in railway projects.
Operational Strengths
- Skilled technical and site execution teams
- Experience in working with public sector clients
- Compliance with railway safety and quality standards
- Project management capabilities for time-bound delivery
These strengths enable the company to participate in recurring railway infrastructure tenders.
Industry Overview & Market Opportunity
India’s railway sector is witnessing strong growth driven by:
- Massive government spending on railway modernisation and expansion
- Dedicated freight corridors and station redevelopment projects
- Electrification and safety upgrade initiatives
- Long-term focus on logistics and connectivity infrastructure
Companies like Dhara Rail Projects stand to benefit from consistent public infrastructure investments, especially in execution-focused rail projects.
Objectives of the IPO
The company proposes to utilise the IPO proceeds for:
- Working capital requirements
- Funding ongoing and future project execution
- General corporate purposes, including operational strengthening
These objectives aim to support scalability and improve project execution efficiency.
Key Strengths
✅ Exposure to Government-Backed Railway Projects
✅ Infrastructure Sector Tailwinds
✅ Execution-Focused Business Model
✅ Repeat Opportunities Through Tender-Based Projects
✅ Scalable Operations with Capital Support
Risks & Challenges
❌ Dependence on Government Spending & Tender Awards
❌ Project Execution & Delay Risks
❌ Working Capital Intensity
❌ Competition from Larger Infrastructure Players
Investors should consider these risks, especially common to SME infrastructure companies.
Investment Outlook
Short-Term View
- SME IPOs may experience listing volatility
- Market response depends on subscription levels and sentiment
Long-Term View
- Long-term railway capex provides demand visibility
- Growth linked to order book expansion and execution quality
- Suitable for investors with higher risk appetite and long-term horizon
Conclusion
The Dhara Rail Projects IPO offers investors an opportunity to participate in India’s railway infrastructure growth story through an SME-listed execution-focused company. While the sector benefits from strong government support, investors should carefully evaluate project execution risks, working capital needs, and SME liquidity factors before investing.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult a certified financial advisor before making investment decisions.
