RKCPL Unveils ₹1,250 Crore IPO to Fund Capex, Working Capital, and Debt Reduction

Mumbai, September 25, 2025: RKCPL Limited has filed DRHP (Draft Red Herring Prospectus) for a ₹1250 crore IPO (Initial Public Offering). The IPO will comprise a ₹700 crore fresh issue and an OFS (Offer For Sale) component of ₹550 Crore by promoters Naresh Kumar and Krishan Kumar Goyal. The infrastructure company will use the IPO proceeds to strengthen the company’s equipment base, meet working capital requirements, and invest in key highway subsidiaries.

Founded in 2013 and converted into a public company in 2025, RKCPL has executed over 80 projects across India. The company has not declared dividends in the last three years.

RKCPL IPO Financial Performance (Restated)

RKCPL has shown consistent growth over the past three years, with revenue rising from ₹861.72 crore in FY23 to ₹1,270.66 crore in FY25. Profit after tax (PAT) nearly doubled in this period, reaching ₹164.58 crore, while EPS improved from ₹7.31 to ₹12.47, reflecting stronger profitability. Net worth also expanded significantly to ₹569.05 crore in FY25, backed by retained earnings and business expansion.

However, borrowings increased sharply to ₹509.26 crore, indicating higher leverage to support growth. The company’s strong order book of ₹2,617.51 crore across 17 projects highlights solid execution visibility for the near term.

RKCPL IPO Structure

The issue consists of a fresh component of ₹700 crore and OFS of ₹550 crore. The pre-IPO allotment is up to ₹140 crore. The stock will be listed on both NSE and BSE. The lead managers of the issue are Equirus Capital and Anand Rathi Advisors. The Registrar of the Issue is MUFG Intime India Pvt. Ltd..

The IPO will see participation from institutional, non-institutional, and retail investors, with specific quotas allocated to each category. The price band, lot size, and anchor investor details will be announced before the opening.

RKCPL IPO Use of Proceeds

The company plans to use ₹130.02 crore for the purchase of construction equipment. Around ₹200 crore will be allocated for working capital requirements, and ₹50 crore will be utilized for debt repayment. The company plans to invest ₹138 crore in the Hybrid Annuity Model (HAM) subsidiaries, and the remaining amount will be used for general corporate purposes.

The equipment acquisition plan includes ready-mix concrete trucks, excavators, cranes, rollers, hot-mix plants, pavers, graders, and loaders, enabling faster execution and qualification for larger projects.

RKCPL IPO Segment and Order Book

RKCPL’s project portfolio spans highways, bridges, rail structures, and drainage systems. Its HAM exposure includes key projects such as the Bathinda–Ludhiana Highway, Paonta Sahib Highway, and Ambala Ring Road. Currently, EPC projects make up nearly three-fourths of the order book, with the remaining portion in HAM projects

REF: https://nsearchives.nseindia.com/corporate/Registration_24092025201805_RKCDRHP.pdf

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