Polite Powertech Files Draft Papers For IPO To Raise Funds For Working Capital

Polite Powertech, a Surat-based power infrastructure EPC company, has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise funds through an initial public offering, primarily to support its working capital requirements. 

IPO Structure And Fund Utilisation 

The proposed IPO comprises a total of 1.25 crore equity shares, including a fresh issue of 1 crore shares and an offer-for-sale (OFS) of 25 lakh shares. 

Promoter Yogeshkumar Narottambhai Patel will offload shares under the OFS component. 

The company plans to utilise ₹100 crore from the fresh issue towards working capital, with the remaining proceeds earmarked for general corporate purposes. 

Focus On Power And Renewable EPC Projects 

Incorporated in 2023, Polite Powertech operates in the engineering, procurement, and construction (EPC) segment of the power sector. The company specialises in high-voltage and extra-high-voltage transmission lines, underground and overhead cabling, solar EPC projects, and air- and gas-insulated substations. 

It has executed transmission projects up to 220 kV and distribution projects up to 33 kV, catering to state utilities, power companies, and industrial clients. 

Financial Performance: Strong Growth Trajectory 

Polite Powertech has demonstrated sharp financial growth in a short span. For FY25, the company reported a profit of ₹13.02 crore, a significant jump from ₹0.84 crore in the previous year.  

Revenue surged to ₹155.6 crore, compared to ₹24.6 crore a year earlier. In the first half of the current financial year, the company recorded a profit of ₹10.7 crore on revenue of ₹97.3 crore, indicating continued momentum. 

Industry Positioning And Advisors 

The company operates in a competitive landscape alongside listed players such as Rajesh Power Services, Advait Energy Transitions, and Viviana Power Tech. 

For the IPO, Arihant Capital Markets and Valmiki Leela Capital have been appointed as the book-running lead managers. 

Read More: Upcoming IPO: SBI Funds Management Filed DRHP with SEBI! 

Conclusion 

Polite Powertech’s IPO plans come amid strong growth in the power EPC sector, with the company aiming to strengthen its balance sheet and capitalise on rising infrastructure demand. 

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