Rajputana Stainless IPO opens March 9: Check 10 key things to know from RHP before investing

Rajputana Stainless Ltd has set a price band of ₹116-122 per share for its upcoming initial public offering (IPO), which aims to raise ₹255 crore.

The company's first public offering is set to commence on March 9 and will close on March 11, as stated in their announcement.

The IPO consists of a fresh issuance of up to 1.46 crore equity shares along with an offer-for-sale of up to 62.5 lakh shares by promoter Shankarlal Deepchand Mehta, totaling to ₹255 crore at the maximum price point.

Funds raised from the new issue will be utilised to establish a manufacturing facility in Panchmahal district, Gujarat, broaden the product range, pay off existing debt, and address general corporate needs.

Rajputana Stainless IPO GMP today was ₹0, which meant shares were trading at their issue price of ₹122 with no premium or discount in the grey market, according to investorgain.com.

Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.

Rajputana Stainless IPO - Promoters

Shankarlal Deepchand Mehta, Babulal D. Mehta, Jayesh Natvarlal Pithva, and Yashkumar Shankarlal Mehta serve as the promoters of the company.

Rajputana Stainless IPO - Peers

The company's listed peers are Mangalam Worldwide Ltd (with a P/E of 22.57), Mukand Ltd (with a P/E of 26.34), Electrotherm Ltd (with a P/E of 3.16), and Panchmahal Steel Ltd (with a P/E of 182.18).

Rajputana Stainless IPO - Business

Founded in 1991, Rajputana Stainless specializes in the production of long and flat stainless-steel items. The company provides a variety of stainless steel products, such as billets, forging ingots, rolled black and bright bars, flat & patti, along with other related offerings, across more than 80 different grades.

Rajputana Stainless IPO - Products Sales Network

The majority of their products are mainly marketed within the country through direct sales and a network of traders. Besides serving the domestic market, our products are currently being exported to nine (9) countries internationally, specifically including Turkey, UAE, Poland, Portugal, USA, South Africa, South Korea, Czech Republic, and Kuwait.

Rajputana Stainless IPO - Customers

During the fiscal year ending in 2025, the company served over 370 clients, with approximately 167 of these clients having been with us for more than three years. These long-term clients accounted for ₹70,684.93 lakhs of revenue from operations, representing 75.83% of the total revenue from operations for the fiscal year 2025. This illustrates the robustness and reliability of their customer relationships, especially with repeat clients who rely on their stainless-steel products for their industrial requirements.

Rajputana Stainless IPO - Manufacturing Facility

The company mainly operates through its manufacturing facility, which spans approximately 35,196.98 square meters, located along the Halol Kalol Road in Kalol, Panchmahal, Gujarat (Manufacturing Facility).

This manufacturing facility is situated on the Halol – Godhra highway, providing easy access for the transportation of our products. It is outfitted with an induction furnace, Argon Oxygen Decarburization (“AOD”) system, Continuous Casting Machine (“CCM”), heat treatment facilities, an Oxygen and Nitrogen Plant, a rolling mill, and a bright bar shop.

Rajputana Stainless IPO - Group companies

The companies in the group consist of Steel Icon Stainless Private Ltd, Bhansali Bright Bars Private Ltd, Rutvij Stainless Private Ltd, Steel Inox Private Ltd, Ventana Speciality Private Ltd, Rajputana Bright Bars Private Ltd, Kanungo Ferromet Private Ltd, Cetus Engineering Private Ltd, and Neo Ferromet Private Ltd.

Rajputana Stainless IPO - Key risks

Some of the key risks are as follows;

1. The manufacturing plant and the planned facility are situated in Gujarat, making their operations particularly susceptible to local conditions and economic declines in the area.
2. The bulk of their revenue comes from the domestic market, with a notable segment of these sales stemming from Maharashtra, Gujarat, and Uttar Pradesh. Any negative changes in this market could negatively impact their business.

Rajputana Stainless IPO - Financial

In FY25, the company's operational revenue was reported at ₹932 crore, an increase from ₹910 crore in FY24. The net profit for the period was ₹40 crore, up from ₹31.6 crore.

Lock-in of equity shares allotted to anchor investors

A lock-in period of 90 days will apply to 50% of the equity shares allocated to the anchor investors starting from the date of allotment, while a lock-in period of 30 days will be applicable to the remaining 50% of the equity shares also from the date of allotment.

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