Dhara Rail Projects IPO Day 1: The initial public offering of Dhara Rail Projects opened for public subscription on December 23 and will remain open until Friday, December 26. The SME IPO has been priced in a band of ₹20 to ₹126 per share.

Through the issue, the company is looking to raise ₹50.20 crore, entirely via a fresh issue of 0.40 crore equity shares, with no offer-for-sale component.

The basis of allotment for the Dhara Rail Projects IPO is expected to be finalised on Monday, December 29, 2025. Shares are likely to be credited to the demat accounts of successful bidders on Tuesday, December 30, with refunds for unsuccessful applicants also scheduled to be processed on the same day. The stock is proposed to be listed on the NSE SME, with a tentative listing date of December 31, 2025.

The company has outlined that the net proceeds from the issue will be utilised mainly for repayment and/or pre-payment, in full or in part, of borrowings amounting to ₹7 crore, as well as for meeting working capital requirements estimated at ₹30.50 crore. The balance amount will be deployed towards general corporate purposes.

The IPO has a lot size of 1,000 shares, which translates into a minimum investment requirement of ₹2.52 lakh for retail investors at the upper end of the price band.

Ahead of the public issue, Dhara Rail Projects had raised ₹14.28 crore from anchor investors on December 22, 2025.

Hem Securities Ltd. is acting as the book-running lead manager for the issue, while Bigshare Services Pvt. Ltd. has been appointed as the registrar. Hem Finlease Pvt. Ltd. will serve as the market maker for the IPO.

Dhara Rail Projects IPO GMP Today

Investor sentiment toward the IPO is strong, as its grey market premium (GMP) is ₹15 on December 23. This suggests that the SME stock was likely to debut at ₹141, a premium of 11.90% from IPO price of ₹126.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Dhara Rail Projects IPO subscription status

The SME IPO was subscribed 1.22x by 12:10 pm on Day 1. The retail portion was subscribed 0.33x, and NII portion was booked 0.26x, Qualified Institutional Buyers (QIBs) portion received 3.50x bids. Moreover, the employee portion was subscribed 1.26x.

The company has received bids for 32.38 lakh shares against 26.47 shares on offer.

About Dhara Rail Projects

Founded in 2010, Dhara Rail Projects operates in a specialised segment catering to railway rolling stock services and electrical systems. The company is engaged in providing annual maintenance contracts, repair and upkeep services, as well as the supply and commissioning of electrical equipment across different categories of trains.

Its operations span the maintenance of train lighting and HVAC systems, servicing of power car equipment, and work related to overhead equipment maintenance vehicles, including tower wagons. In addition, the company undertakes outsourced assignments linked to coach operations and fault diagnosis.