Dhara Rail Projects IPO 2025: GMP, Price Band, Dates, Financials, Risks & Review
Dhara Rail Projects IPO is an upcoming SME IPO that has attracted attention due to its involvement in railway infrastructure projects across India. The company operates primarily in executing contractual railway projects and related services, making it a key player in India’s growing railway modernization and expansion drive.
This detailed IPO review covers issue details, company profile, financial performance, strengths, risks, subscription data, FAQs, and investment outlook, making it a complete guide for investors.
Dhara Rail Projects IPO Key Details
| Particulars | Details |
|---|---|
| IPO Name | Dhara Rail Projects Limited IPO |
| IPO Type | SME IPO |
| Issue Size | ₹50.20 Crore |
| Price Band | ₹120 – ₹126 per share |
| Lot Size | 1,000 shares |
| Minimum Investment | ₹2,40,000 |
| Face Value | ₹10 per share |
| IPO Opening Date | 23 December 2025 |
| IPO Closing Date | 26 December 2025 |
| Tentative Allotment Date | 29 December 2025 |
| Tentative Listing Date | 31 December 2025 |
| Listing Exchange | NSE SME |
| Registrar | Bigshare Services Pvt Ltd |
| IPO Document | RHP Available |
Subscription Status (as per screenshot)
| Category | Subscription |
|---|---|
| Qualified Institutional Buyers (QIB) | 3.50x |
| Non-Institutional Investors (NII) | 0.33x |
| Retail Individual Investors (RII) | 0.33x |
| Total Subscription | 1.20x |
About Dhara Rail Projects Limited
Dhara Rail Projects Limited is engaged in executing railway infrastructure projects and providing related services primarily for Indian Railways. The company focuses on construction, upgrading, and maintenance of railway-related assets.
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Incorporated: 2010
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Managing Director / CEO: Mr. Tejas Lal Mehta
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Business Model: EPC & contract-based railway projects
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Client Base: Largely dependent on Indian Railways
The company claims to have executed multiple projects across different railway zones in India and maintains ISO-certified quality systems.
Strengths of Dhara Rail Projects IPO
✅ ISO 9001:2015 Certified
The company is ISO-certified for quality management systems, indicating standardized processes and operational discipline.
✅ Strong Order Book
Dhara Rail Projects has a diversified order book of around 60 ongoing projects, amounting to approximately ₹143.78 crore, largely from Indian Railways.
✅ Pan-India Presence
The company operates across Central, East Coast, Western, North Central, and Eastern Railway zones, reducing dependency on a single geography.
✅ Consistent Revenue & Profit Growth
The company has shown steady growth in revenue and profit after tax (PAT) over the last three financial years.
Financial Performance of Dhara Rail Projects
Revenue Growth (₹ in Crore)
| Financial Year | Revenue |
|---|---|
| FY23 | ₹26.60 Cr |
| FY24 | ₹31.47 Cr |
| FY25 | ₹44.48 Cr |
Profit After Tax (PAT)
| Financial Year | PAT |
|---|---|
| FY23 | ₹1.06 Cr |
| FY24 | ₹2.97 Cr |
| FY25 | ₹6.53 Cr |
📌 Observation: The company has delivered strong growth momentum, especially in FY25, supported by higher project execution and order inflows.
Risks Associated with Dhara Rail Projects IPO
⚠ Heavy Dependence on Indian Railways
A significant portion of revenue is derived from Indian Railways. Any reduction in government spending or delays in payments can impact financial performance.
⚠ Working Capital Intensive Business
The company reported negative cash flow from operating activities in recent years, indicating dependence on timely receivables and borrowing.
⚠ Supplier Concentration Risk
The top 10 suppliers account for a large portion of total purchases. Any disruption could affect project execution timelines.
⚠ Geographic Concentration
A large portion of operations are concentrated in a few states, exposing the company to regional policy, economic, or environmental risks.
⚠ High Receivables
Trade receivables increased significantly, which may strain liquidity and working capital requirements.
Application Details
| Category | Details |
|---|---|
| Apply As | Individual Investor |
| Price Band | ₹120 – ₹126 |
| Application Amount | ₹2 – ₹5 Lakh |
| Shares per Lot | 1,000 |
Dhara Rail Projects IPO FAQs
Q1. What is the issue size of Dhara Rail Projects IPO?
The IPO issue size is ₹50.20 crore.
Q2. What are the IPO opening and closing dates?
The IPO opens on 23 December 2025 and closes on 26 December 2025.
Q3. What is the minimum investment required?
Minimum investment is ₹2,40,000 for one lot.
Q4. What is the allotment date?
The tentative allotment date is 29 December 2025.
Q5. On which exchange will the shares be listed?
The shares will be listed on NSE SME.
Q6. Who is the registrar of the IPO?
The registrar is Bigshare Services Pvt Ltd.
Q7. Is Dhara Rail Projects IPO suitable for retail investors?
As an SME IPO, it carries higher risk and volatility. Investors should apply only after assessing risk tolerance.
Investment Outlook: Should You Invest?
Dhara Rail Projects IPO offers exposure to the railway infrastructure sector, which benefits from long-term government investment. The company shows improving financials and a strong order book, but also carries SME-specific risks, including liquidity constraints and dependence on a single client.
🔹 Suitable for: High-risk investors with SME IPO experience
🔹 Not suitable for: Conservative or short-term investors
Disclaimer
This article is for educational and informational purposes only. It is not investment advice. IPO investments are subject to market risks. Readers are advised to read the Red Herring Prospectus (RHP) carefully and consult a SEBI-registered financial advisor before investing. The author is not responsible for any financial losses.
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