Rajputana Stainless IPO: Price band set at ₹116-122 per share; check key dates, issue details, more

Rajputana Stainless IPO price band has been fixed in the range of ₹116 to ₹122 per equity share of the face value of ₹10. The Rajputana Stainless IPO date of subscription is scheduled for Monday, March 9 and will close on Wednesday, March 11. The allocation to anchor investors for the Rajputana Stainless IPO is scheduled to take place on Friday, March 6.

The floor price is 11.60 times of the face value of the equity shares and the cap price is 12.20 times of the face value of the equity shares. The Rajputana Stainless IPO lot size is 110 equity shares and in multiples of 110 equity shares thereafter.

Rajputana Stainless 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 Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, Rajputana Stainless IPO basis of allotment of shares will be finalised on Thursday, March 12 and the company will initiate refunds on Friday, March 13, while the shares will be credited to the demat account of allottees on the same day following refund. Rajputana Stainless share price is likely to be listed on BSE and NSE on Monday, March 16.

Rajputana Stainless IPO details

The company aims to raise ₹254.98 crore, which comprises a new issue of shares valued at ₹179 crore, alongside an Offer for Sale (OFS) component amounting to ₹76 crore from promoter Shankarlal Deepchand Mehta.

Promoters, including Shankarlal Deepchand Mehta, own a 78.21% stake in Rajputana Stainless, while the remaining 21.79% is held by public shareholders.

A portion of the net proceeds from the fresh issue will be allocated for establishing a manufacturing facility for stainless steel seamless pipes to broaden its product range. Additionally, funds will be used to repay debt, with the rest reserved for general corporate expenses.

Nirbhay Capital Services serves as the book running lead manager, while Kfin Technologies is the registrar for the issue.

Company Details

Rajputana Stainless Limited focuses on the production of both long and flat stainless steel items.

The company provides an array of stainless steel products, which includes billets, forging ingots, rolled black and bright bars, flat bars, and other associated items, across more than 80 different grades.

Primarily, the company markets its products within the domestic market through direct sales and traders, while also exporting to five countries: UAE, USA, Turkey, Kuwait, and Poland.

The company leverages its expertise and facilities to supply raw materials for a variety of sectors, including seamless pipes, aerospace, forging, oil and gas, defense, automotive, aviation, and precision engineering.

As per red herring prospectus (RHP), the company's listed peers are Mangalam Worldwide Ltd (with the 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).

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