Rajputana Stainless IPO Sees Muted Demand on Day 1, GMP Suggests Potential Listing Gains
Rajputana Stainless IPO Update
Overview The initial public offering (IPO) of Rajputana Stainless opened on March 9 and closed on March 11. The IPO comprises a fresh issuance of up to 1.46 crore equity shares and an offer-for-sale of up to 62.5 lakh shares from promoter Shankarlal Deepchand Mehta, totaling ₹255 crore at the upper end of the price range.
Fund Utilization The funds raised from the fresh issue will be allocated towards establishing a manufacturing facility in Panchmahal district, Gujarat, expanding the product range, repaying debt, and addressing general corporate needs.
Company Background Rajputana Stainless was founded in 1991 as Rajputana Steel Castings and rebranded in 2007 following a strategic restructuring.
Grey Market Premium (GMP) and Listing Price The current GMP for Rajputana Stainless is 2. Based on the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Rajputana Stainless shares is ₹124 apiece, representing a 1.64% increase from the IPO price of ₹122.
Investor Takeaway
Investors should be cautious of the muted demand for Rajputana Stainless IPO on its first day.
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