Jajoo Rashmi Refractories Ltd IPO

About Jajoo Rashmi Refractories Ltd IPO

Jajoo Rashmi Refractories Ltd will soon launch its IPO, which will comprise a fresh issue and an offer for sale. While the fresh issue size is pegged at ₹150 crores, the offer for sale consists of up to equity shares with a face value of ₹10 each. The IPO opens on TBA and closes on TBA. The credit of shares to the demat account will take place on TBA. The basis of allotment and the initiation of refunds will take place on TBA.

Objectives of Jajoo Rashmi Refractories Ltd IPO

Part finance the cost of establishing new manufacturing facilities to expand our production capabilities of ferro alloys in the Proposed Bokaro Project

Funding working capital requirements of our Company

General Corporate Purposes

To be finalised upon determination of the Issue Price and updated in the Prospectus prior to the filing of the Prospectus with the RoC. The amount to be utilised for general corporate purposes shall not exceed 25% of the Gross Proceeds.

Industry Outlook

The global ferroalloys market is anticipated to expand at a compound annual growth rate (CAGR) of 5.9% over the period of 2023-2029. The primary factors propelling market growth are the rising demand for steel from various end-use industries, such as automotive, aerospace, energy, construction, and consumer goods, as well as the availability of low -cost raw materials and labor in developing countries.

The India ferro alloy production is expected to grow significantly at a CAGR of 6.8% during 2023-2029. India is one of the major producers of ferro alloys in the world, with a growing steel production industry and a strong focus on infrastructure development. As India is the largest exporter of ferro alloys, the exports of ferro alloy is expected to grow at a CAGR of 7% and 8% in terms of volume and value, respectively during 2023-2029.

Company Information

The company manufactures and exports ferro alloys (ferro silicon, ferro manganese, silico manganese) and refractory products used in steel production. With over two decades of operations, it runs three manufacturing units in Jaipur, Kalyaneshwari, and Kandla SEZ. The company primarily generates revenue from exports, operating across 29 countries, including the Middle East, Africa, South Asia, and Europe.

Risks of Jajoo Rashmi Refractories Ltd IPO

1. The company is highly dependent on its top 10 customers, who contributed 75.91%, 73.16%, 68.22%, and 57.02% of total revenue in the three-month period ended June 30, 2024, and in Fiscal 2024, 2023, and 2022, respectively. The loss of any key customer could significantly impact the company’s financial performance.

2. A substantial portion of the company’s export operations are concentrated in the Middle East, North Africa, and South East Asia. Any unfavourable economic or political developments in these regions could adversely affect revenue, cash flows, and financial stability.

3. They depend on a few key suppliers who help them procure raw materials for manufacturing their products. The company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event they are unable to procure adequate amounts of raw materials, at competitive prices, their business, results of operations and financial condition may be adversely affected.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

Bigshare Services Private Limited is the registrar of the Jajoo Rashmi Refractories Ltd. The book-running lead managers are:

• Unistone Capital Private Limited

Business Model

Jajoo Rashmi Refractories is a manufacturer and exporter of various grades of ferroalloys, which are primarily utilised as an essential raw material in the manufacturing of steel in the steel industry. They are also engaged in manufacturing a wide range of refractory products which are designed to withstand high temperature without deteriorating their physical and chemical properties, without melting or breaking. They primarily derive the majority of their revenue from their export operations. As of the three month period ended June 30, 2024, and as of March 31, 2024, March 31, 2023 and March 31, 2022, 90.97%, 91.47%, 92.32% and 80.36%, respectively, of their revenue from operations were generated from the export operations undertaken by their Company.

Company Growth Trajectory

The company commenced business by manufacturing quartz powder and over the years have been successful in expanding their product portfolio by adding additional refractory products such as, ramming mass, casting powder, nozzle filling compound, various grades of ferro alloys, such as, ferro silicon, ferro manganese and silico manganese. The company has taken advantage of the growing demand for steel and allied products from other countries and has expanded its operations across the globe. They spread to 29 countries and as of now they earn more than 90% of their reveneue from export operations.

How to Check the Allotment Status of Jajoo Rashmi Refractories Ltd IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Ltd. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Jajoo Rashmi Refractories Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of Bigshare Services Private Limited

• Visit the website of Bigshare Services Private Limited
• Choose ‘Public Issues’ from Investor Services dropdown
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to Apply for Jajoo Rashmi Refractories Ltd IPO?

Here are the steps to apply for Jajoo Rashmi Refractories Ltd IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.