Rajputana Stainless IPO

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

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.

Risks of Rajputana Stainless Ltd IPO

• 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.

• 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.

• 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.

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.

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 Neo 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.