Dhara Rail Projects IPO

About Dhara Rail Projects IPO

The IPO of Dhara Rail Projects comprises a fresh issue of up to 39,84,000 equity shares. There’s no offer for sale in this IPO, which is a 100% book-built issue. The price band is ₹120 to ₹126 per share.

Dhara Rail Projects IPO opens on December 23, 2025 and closes on December 26, 2025. The allotment of shares will take place on December 29, 2025. The credit of shares to the Demat account will take place on December 30, 2025. The initiation of refunds will take place on December 30, 2025. The listing of shares will take place on December 31, 2025.

The lot size of shares in the IPO is 1000. The minimum number of lots in the IPO for retail investors is 2. The minimum investment amount required by a retail investor is ₹2,52,000 based on the upper price.

Incorporated in 2010, Dhara Rail Projects is an ISO 9001:2015 certified company, engaged in the business of executing various types of contractual railway projects and related services which includes annual maintenance contracts (AMC) and repair services for a wide range of railway rolling stock systems.

Objectives of Dhara Rail Projects IPO

The company plans to utilise the IPO proceeds for:

• Repayment and/or pre-payment, in full or part, of borrowing availed by the company
• Meeting working capital requirements
• General corporate purposes

Market maker reservation portion is 5.12% of the issue size.

Industry Outlook

India's railway network is recognised as one of the largest railway systems in the world under single management. The railway network is also ideal for long-distance travel and movement of bulk commodities, apart from being an energy-efficient and economic mode of conveyance and transport.

In FY25, Indian Railways loaded 1,617.0 MT of freight and revenue rose by approximately ₹1.75 lakh crore (US$ 20.5 billion) compared to 1.70 lakh crore (US$19.8 billion) last year. The Indian Railway network is growing at a healthy rate. In the next five years, the Indian railway market is expected to be the third largest, accounting for 10% of the global market.

The government has announced two key initiatives for seeking private investments-running passenger trains by private operators across the railways network and redevelopment of railway stations across the country. According to Indian Railways, these projects have the potential of bringing an investment of over US$ 7.5billion in the next five years.

Dhara Rail Projects Company Information

Incorporated in 2010, Dhara Rail Projects is an ISO 9001:2015 certified company, engaged in the business of executing various types of contractual railway projects and related services which includes annual maintenance contracts (AMC) and repair services for a wide range of railway rolling stock systems.

The company provides services to the Ministry of Railways, Government of India, either through directly awarded contracts secured via competitive tendering, which may range up to 3 years, or through pre-bid arrangements with various OEMs.

Strengths of Dhara Rail Projects

• Diversified order book of projects across India
• Revenue from multiple geographies
• Assured quality services
• Experienced senior management

Risks of Dhara Rail Projects

• Adverse change in policy of the Ministry of Railways may lead to contracts being foreclosed
• Labour intensive industry and business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by employees
• Adverse developments impacting operations in various Railway zones could negatively affect revenue and overall financial performance
• Materially adverse social, political, or economic developments, including civil disruptions in Mumbai, Maharashtra, may adversely impact business operations
• Insufficient cash flows from operations or inability to borrow to meet working capital requirements may materially and adversely affect business

Comparison with Peers

There are no listed companies in India that are engaged in the business line similar to that of Dhara Rail Projects. Thus, it is not possible to provide an industry comparison in relation to that of Dhara.

Anchor Investor Bidding Date

Anchor portion of the IPO opens for bidding December 22, 2025.

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Bigshare Services
• Book Running Lead Manager: Hem Securities

Dhara Rail Projects Business Model

Dhara Rail Projects primarily undertakes annual maintenance contracts and repair services for:

• Train lighting equipment across all categories of rolling stock including the latest-generation Vande Bharat trains
• Overhead equipment maintenance vehicles
• Power car equipment
• Heating, ventilation and air conditioning (HVAC) systems used in rolling stock

It also supplies, installs, tests and commissions various electrical equipment across all types of rolling stock. It’s also involved in various outsourcing services for passenger coaches, covering en route operations and troubleshooting.

Dhara Rail Projects Growth Trajectory

The revenue from operations of Dhara Rail Projects grew from ₹26.6011 crores in FY 23 to ₹44.4842 crores in FY 25. Its EBITDA margin grew from 2.80% in FY 23 to 11.88% in FY 25, while PAT margin has grown from 4% in FY 23 to 14.67% in FY 25. Revenue from multiple geographies and assured quality services have helped the company grow over the years.

Dhara Rail Projects Market Position

Dhara Rail Projects has been associated with Indian Railways since its incorporation and has built a long-term relationship with Indian Railways, by delivering its services through directly awarded contracts obtained via competitive tendering, as well as by pre-bid arrangements with various OEMs. It has diversified its presence beyond the Central Railway to include zones such as East Coast Railway, Western Railway, North Central Railway and Eastern Railway.

How to Apply for the Dhara Rail Projects IPO?

• Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.