Rajgor Castor Derivatives IPO : Check GMP, subscription status on day 3, other key details

Rajgor Castor Derivatives Ltd IPO opens for subscription on Tuesday, October 17, and closes on Friday, October 20. Rajgor Castor Derivatives IPO's price band is set in the range of ₹47 to ₹50. Investors can bid for a minimum of 3000 shares and in multiples thereof.

Brijeshkumar Vasantlal Rajgor, Vasantkumar Shankarlal Rajgor and Maheshkumar Shankarlal Rajgor are the company's promoters. Products based on castor oil are produced by Rajgor Castor Derivatives Limited for the Indian market. The company offers the following products: Grade F.S.G. (First Stage Refined Castor Oil): G.F.S. Castor oil is bleached to meet British Standard requirements.

It is utilised in a variety of products, including paints, lubricants, medicines, cable insulators, sealants, inks, rubber, and textiles. It is also applied to food grains to protect them from insects and fungi, and it is used as a skin moisturiser, eyelash and hair grower, constipation reliever, and immune system booster.

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Rajgor Castor Derivatives Ltd IPO detail

Rajgor Castor Derivatives IPO consists of fresh issue of shares of up ₹44.48 crore and an offer for sale (OFS) of up 666,000 shares equity shares of face value of ₹10 each by a promoter and others. The total size of the IPO is ₹47.81 crore.

Rajgor Castor Derivatives IPO raised ₹13.56 crore from anchor investors, as per reports.

The offer proceeds from the new issue will be used for the following purposes: to cover public offering costs, general company purposes, and working capital requirements.

The Rajgor Castor Derivatives IPO's book running lead manager is Beeline Capital Advisors Pvt Ltd, and the registrar is Link Intime India Private Ltd. Spread X Securities is the market maker for the Rajgor Castor Derivatives IPO.

Rajgor Castor Derivatives Ltd IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

Also Read: Rajgor Castor Derivatives Ltd IPO opens next week, price band set at ₹47-50 per share. Check GMP, review, other detail

Rajgor Castor Derivatives Subscription Status

Rajgor Castor Derivatives subscription status was 12.90 times on day 3. The issue received positive response from retail investors who's portion set was subscribed 17.49 times, and somewhat good response from non-institutional buyers who's portion set was subscribed 5 times, according to data on chittorgarh.com. Qualified Institutions Buyers subscribed to the issue 10.78 times.

The company has received bids for 8,03,13,000 shares against 62,26,000 shares on offer, at 12:43 IST, according to data on chittorgarh.com.

Rajgor Castor Derivatives subscription status was 6.16 times on day 1, and the issue was subscribed 10.79 times on day 2. 

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Rajgor Castor Derivatives Ltd IPO GMP today

Rajgor Castor Derivatives Ltd IPO GMP or grey market premium is +10. This indicates Rajgor Castor Derivatives share price were trading at a premium of ₹10 in the grey market on Thursday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Rajgor Castor Derivatives share price was indicated at ₹60 apiece, which is 20% higher than the IPO price of ₹50.

On last 10 sessions grey market activities, today IPO GMP points upward and expects a strong listing. The lowest GMP is ₹6, while the highest GMP is ₹10, according to investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Rajgor Castor Derivatives Ltd IPO Review

“Rajgor Castor Derivatives Ltd is in the business of castor oil related derivatives that has huge and growing demand. The company scaled up its operations post the pandemic and is poised for bright prospects ahead. Based on FY24 annualized earnings, the issue appears fully priced. Well-informed investors may park funds for long-term rewards," said Dilip Davda, the contributing editor at Chittorgarh.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.