R Karunanidhe Construction (RKCPL), an infrastructure and engineering company with a strong footprint in highways, bridges, and railway projects, has filed Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), seeking to raise INR 1,250 crore through an IPO. The issue comprises a fresh issue of shares worth up to INR 700 crore and an offer for sale (OFS) of up to INR 550 crore.
RKCPL IPO Structure
RKCPL IPO will be a combination of a fresh issue and an OFS. Promoters Naresh Kumar and Krishan Kumar Goyal will each offload shares worth up to INR 275 crore through the OFS.
The company’s key promoters are Ram Kumar Goyal, Naresh Kumar, and Krishan Kumar Goyal, who collectively hold the majority stake. Pre-issue shareholding shows Krishan Kumar Goyal (48.5%) and Naresh Kumar (46%) as the dominant shareholders, with minor stakes held by Ram Kumar Goyal (3%) and Sushma (2.5%).
Equirus Capital and Anand Rathi Advisors are acting as the Book Running Lead Managers (BRLMs), while MUFG Intime India has been appointed as the registrar to the issue.
RKCPL IPO: Use of Funds
RKCPL plans to deploy the net proceeds as follows:
- INR 130.02 Cr– Capital expenditure for purchase of construction equipment
- INR 200 Cr – Funding working capital requirements
- INR 50 Cr – Pre-payment/repayment of borrowings
- INR 138 Cr – Investment in subsidiaries (Bathinda Ludhiana Highway, Poanta Saheb Highway, and Ambala Ring Road Highway) for debt reduction
- Balance – For general corporate purposes
RKCPL IPO: Business Overview
Founded with roots dating back to 1998, RKCPL has evolved into a multi-sector EPC and HAM contractor. The company’s portfolio spans highways, bridges, railways, viaducts, elevated corridors, and specialized structures.
Its operations are broadly classified into:
- EPC Contracts: Covering highways, bridges, and railway projects
- HAM Projects: Hybrid Annuity Model road projects, reducing financial risks while offering steady annuity income
- Operations & Maintenance Services: Performed under EPC/HAM agreements
RKCPL has successfully delivered landmark projects including the Muzaffarnagar-Haridwar elevated corridor, Dhaula Kuan T-junction improvement, and Sonepat-Bawana Urban Extension Road, among others. It is also engaged in ongoing projects across Delhi, Gujarat, Maharashtra, Telangana, Odisha, Punjab, Haryana, and Uttarakhand.
Order Book Strength
As of 31 July 2025, RKCPL reported a healthy order book of INR 2,617.5 crore spread across 17 projects.
- By Segment:
- EPC (Roads, Highways & Bridges): INR 1,924.70 crore (73.5%)
- Railways: INR 198.41 crore (7.6%)
- HAM: INR 494.4 crore (18.9%)
- By Geography:
- Punjab (26.8%), Telangana (25.7%), Odisha (14.6%), Gujarat (12.3%), Haryana (9.3%), Maharashtra (8.3%)
- By Client Base:
- NHAI: 59.1%
- MoRTH: 17.8%
- Govt. of Odisha: 14.6%
- Indian Railways: 7.6%
Financial Performance
RKCPL has shown consistent growth over the past three fiscals:
- Revenue from operations rose from INR 861.7 cr in FY23 to INR 1,270.6 cr in FY25.
- Profit after tax grew from INR 965 cr in FY23 to INR 164.6 cr in FY25.
- EPS improved from INR 7.31 (FY23) to INR 12.47 (FY25).
Notably, the company has managed to complete projects without liquidated damages and even earned early completion bonuses, reflecting robust project execution capabilities.
Operations, Resources & Competitive Edge
- Maintains a fleet of 730 owned construction equipment and vehicles, ensuring operational independence.
- Employs 1,655 permanent staff across civil, mechanical, and administrative divisions.
- Procures raw materials like cement, steel, and bitumen from established suppliers including Ultratech Cement, HPCL, Wonder Cement, and Shree Cement.
RKCPL operates in a highly competitive EPC market, facing rivals such as Ceigall India, GR Infra, HG Infra, KNR Constructions, PNC Infratech, J Kumar Infraprojects, and Ashoka Buildcon. Aggressive bidding practices in the sector often lead to margin compression, making execution efficiency the key differentiator.
Outlook
With a robust order book, growing revenues, disciplined execution, and strong promoter backing, RKCPL IPO is positioned to attract significant investor attention. The proceeds aimed at deleveraging, capacity expansion, and strengthening working capital are expected to bolster its growth trajectory in India’s expanding road and infrastructure sector.
If successful, RKCPL IPO will not only provide partial exits to promoters but also enhance the company’s visibility and funding capacity to compete aggressively in the EPC and HAM space.
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