IPO Details
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IPO Size
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Schedule of Rajputana Stainless Ltd IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Rajputana Stainless Ltd IPO
The Rajputana Stainless Ltd IPO is a 100% book-built issue comprising fresh issue and an offer for sale. The fresh issue consists of up to 1,90,00,000 equity shares, while the offer for sale consists of up to 35,00,000 equity shares.
Objectives of Rajputana Stainless Ltd IPO
- Funding capital expenditure requirements for setting up of manufacturing facility for stainless steel seamless pipes to expand its product portfolio
- Funding working capital requirement for the proposed facility
- Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the company
- General corporate purposes
Rajputana Stainless Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 1,90,00,000 equity shares |
Offer for Sale | Up to 35,00,000 equity shares |
EPS in (₹) for FY 24 | 4.59 |
Rajputana Stainless Ltd IPO Share Offer and Valuation
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Bidders | Not less than 15% of the offer |
Retail Individual Bidders | Not less than 35% of the offer |
Industry Outlook
India, the second-largest crude steel producer, has also been a key player in the global steel market. The country's crude steel production capacity has increased from 142.3 Mn tonnes in FY 2020 to 179.5 Mn tonnes in FY 2024 (provision as per Ministry of Steel), registering a compounded annual growth of 6%.
Company Information
Rajputana Stainless Ltd is engaged in the business of manufacturing long and flat stainless-steel products. In addition to catering to the domestic market, the company’s products are exported to five countries in the international market i.e. UAE, USA, Turkey, Kuwait and Poland.
Strengths of Rajputana Stainless Ltd IPO
Established, Integrated Manufacturing Setup at Strategic Location
Rajputana Stainless Ltd primarily operates through its manufacturing facility which is spread across 35,196.98 sq.m of land at Halol Kalol Road, Kalol, Panchmahal, Gujarat. The company’s manufacturing facility is equipped with an induction furnace, AOD, CCM, heat treatment facilities, rolling mill and bright bar shop.
Diverse Product Portfolio
The company’s product portfolio comprises billets, forging ingots, rolled black bar, rolled bright bar, flat & patti and other ancillary products. It offers its products in more than 80 diverse grades of stainless steel.
Established Customer Base and Strong Relationships
The company has established strong customer relations through 20 years of operating experience. During the three-month period ending June 30, 2024 and Fiscal 2024, Fiscal 2023 and Fiscal 2022, the company catered to over 209 customers, 385 customers, 363 customers and 315 customers respectively, out of which around 150 customers have been associated with them for over a period of 3 years.
Risks of Rajputana Stainless Ltd IPO
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The company derives a significant portion of its revenue from operations from its top 10 customers and doesn’t have long-term contracts with all of these customers. If one or more of such customers choose not to source their requirements from the company or to terminate the contracts or purchase orders, the company’s business, cash flows, financial condition and results of operations may be adversely affected.
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The company’s manufacturing facility and proposed facility is located in Gujarat. Therefore, its operation is highly vulnerable to regional conditions and economic downturns in the region.
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The company derives the majority of sales from the domestic market and a significant portion of its domestic sales are derived from the states of Maharashtra, Gujarat and Uttar Pradesh. Any adverse developments in this market could adversely affect its business.
All Financial Information about Rajputana Stainless Ltd
Particulars (in Rs. crore)
Particulars (in Rs. crore)
Comparison with peers
| Parameter | Rajputana Stainless Ltd | Manglam Worldwide Ltd | Mukand Ltd | Electrotherm Ltd | Panchmahal Steel Ltd |
|---|---|---|---|---|---|
Revenue from Operations in ₹ crore for FY 24 | 909.808 | 818.108 | 5174.81 | 4271.5 | 427.62 |
Return on Net Worth for FY 24 (in %) | 28.17 | 12.74 | 11.15 | -40.63 | 1.89 |
Net Worth in ₹ crore for FY 24 | 112.2694 | 180.3814 | 921.10 | 781.12 | 156.89 |
Basic EPS in ₹ for FY 24 | 4.59 | 8.89 | 7.11 | 249.08 | 1.56 |
IPO Registrar and Book Running Lead Manager
KFin Technologies Ltd is the registrar of the Rajputana Stainless Ltd. Nirbhay Capital Services Private Ltd is the book running lead manager.
Business Model
Rajputana Stainless Ltd markets and sells its products under the name ‘RSL’. The company is engaged in the manufacturing of long and flat stainless-steel products comprising billets, forging ingots, rolled black bar, rolled bright bar, flat & patti and other ancillary products.
Company Growth Trajectory
Onwards, the year 2006 Rajputana Stainless Ltd has demonstrated consistent growth in terms of revenues and profitability. Its revenue from operations has grown from ₹36.0407 crore in fiscal 2006 to ₹909.808 crore in fiscal 2024, registering a CAGR of 19.65% in the last 18 years. Similarly, its profit after tax has grown from ₹0.7123 crore in fiscal 2006 to ₹31.62 crore in fiscal 2024, registering a CAGR of 23.46 % in the last 18 years.
Market Position
Rajputana Stainless Ltd has over 20 years of operating experience in manufacturing long and flat stainless-steel products. It offers its products in more than 80 diverse grades of stainless steel. As of June 30, 2024 and Fiscal 2024, its manufacturers network comprised 155 and 253 manufacturers customers and 54 and 132 traders, respectively across the country. Currently, it sells its products in 13 states and 2 union territories through direct sales and its traders’ network.
Rajputana Stainless Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 915.5025 | 950.6906 | 767.9299 |
Net Profit Before Tax (in ₹ crore) | 42.3226 | 28.5776 | 13.9354 |
EBITDA (in ₹ crore) | 59.4097 | 43.8458 | 30.245 |
EPS in ₹ | 4.59 | 3.49 | 1.26 |
Rajputana Stainless Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Net Profit Before Tax (in ₹ crore) | 42.3226 | 28.5776 | 13.9354 |
Net cash (used)/generated from operating activities (in ₹ crore) | 31.4896 | 25.1035 | (1.9391) |
Net cash from/ (used in) investing activities (in ₹ crore) | (6.4758) | (13.097) | (5.9877) |
Net cash used in financing activities (in ₹ crore) | (25.0267) | (11.9717) | 7.8843 |
Cash and cash equivalents (in ₹ crore) | 0.0376 | 0.0505 | 0.0158 |
How to Check Allotment Status of Rajputana Stainless Ltd IPO?
You can check the allotment status of the Rajputana Stainless Ltd IPO on the BSE website and on the registrar's website - KFin Technologies Ltd. Follow these steps 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 Rajputana Stainless Ltd
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To check the status on the registrar's website:
- Visit the website of KFin Technologies Ltd
- Choose IPO allotment status from “Products’ dropdown
- Click on any of the links
- Select the IPO
- Input either your application number, PAN number or Demat number
- Enter captcha and click on Submit
How to Apply for Rajputana Stainless Ltd IPO?
To apply for the Rajputana Stainless 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.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Rajputana Stainless Ltd IPO FAQs
What is the Rajputana Stainless Ltd IPO about?
The Rajputana Stainless Ltd IPO comprises a fresh issue and an offer for sale of up to 1,90,00,000 equity shares and 35,00,000 equity shares, respectively.
When will the IPO of Rajputana Stainless Ltd go live?
The exact dates of the IPO are not known. However, the IPO is expected to hit the market soon.
