Upcoming IPO: Jaipur-based Jajoo Rashmi Refractories, a manufacturer and exporter specialising in various grades of ferro alloys critical for steel production, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company looks to raise ₹150 crore via the initial share sale.
Jajoo Rashmi Refractories IPO consists entirely of a fresh issue of shares with a face value of ₹10, with no offer-for-sale component. Out of the funds raised, ₹61.83 crore will be utilised for the establishment of new manufacturing facilities for ferro alloys in Bokaro, Jharkhand, ₹47.67 crore for working capital requirements, and the remaining for general corporate purposes.
The issue will follow a book-building process, allocating not more than 50% to Qualified Institutional Buyers (QIB), while 15% and 35% of the net offer will be reserved for Non-Institutional Investors and Retail Investors, respectively.
Company Overview and Expansion Plans
Founded in 1995, Jajoo Rashmi Refractories is the flagship company of the Jajoo Rashmi Group. Starting as a manufacturer and exporter of refractory products for the global steel industry, the company has expanded its portfolio to include ferro alloys like ferro silicon, ferro manganese, and silico manganese. With operations spanning 29 countries, its exports form a substantial 91% of total revenue, highlighting its strong international presence.
The company operates three manufacturing facilities across Jaipur (Rajasthan), Kalyaneshwari (West Bengal), and Kandla SEZ (Gujarat). Notably, the Kandla unit is export-oriented, leveraging its SEZ location. Together, these units offer an installed production capacity of 78,000 MTPA. Further expansion is underway with the development of a facility in Bokaro, Jharkhand, aimed at boosting ferro alloy production.
Performance highlights
On the financial front, the company reported a 43.12% increase in revenue, to ₹334.03 crore in FY24 from ₹233.39 crore in FY22. Meanwhile, its profit after tax jumped 176.81% in the same period, reaching ₹24.28 crore in FY24.
Revenue from operations for the three months ending June 30, 2024, stood at ₹117.45 crore, with a profit after tax at ₹6.39 crore.
Jajoo Rashmi Refractories emphasises quality across its operations, incorporating automation in its West Bengal plant to enhance consistency. Each facility is equipped with dedicated quality control teams, and third-party agencies conduct additional testing before product dispatch, the company informed.
Unistone Capital Private is the sole book-running lead manager, while Bigshare Services Private is the registrar. The company's equity shares will be listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).
