Rajputana Stainless Secures Rs 10 Crore via Anchor Investor, Set to Commence IPO on March 9

Rajputana Stainless Raises Rs 10 Crore from Anchor Investor Ahead of IPO

Rajputana Stainless, a Gujarat-based manufacturer of long and flat stainless-steel products, has secured Rs 10 crore from Shine Star Build Cap, its sole anchor investor, on March 6. This investment comes a day before the company's initial public offering (IPO) opens for public subscription.

The IPO will run from March 9 to March 11, with a price band of Rs 116-122 per share. Rajputana Stainless has allocated 8.19 lakh equity shares to the anchor investor at the upper price band of Rs 122 per share.

The company is raising Rs 254.98 crore through its IPO, consisting of a fresh issue of 1.46 crore shares worth Rs 178.73 crore and an offer-for-sale of 62.5 lakh shares amounting to Rs 76.25 crore. The Rs 178.73 crore raised from the fresh issue will be utilized for:

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• Rs 18.57 crore for the expansion of the existing manufacturing facility at Panchmahal, Gujarat through forward integration and diversification of product portfolio.
• Rs 98 crore for the repayment of certain outstanding borrowings.
• Remaining funds for general corporate purposes.

The company plans to establish a stainless-steel seamless pipes manufacturing unit with a proposed installed capacity of 9,600 MTPA on vacant industrial land within the premises of the existing manufacturing facility.

Nirbhay Capital Services is acting as the merchant banker for the Rajputana Stainless IPO.