Rajputana Stainless to Launch IPO Next Week: Price Band, GMP, and Key Details Revealed

Rajputana Stainless IPO

Key Figures:

• ₹255 crore: Target amount to be raised from the primary market
• ₹254.98 crore: Amount to be raised from the book-building issue
• ₹178.73 crore: Fresh issue of 1.47 crore equity shares
• ₹76.25 crore: Offer for sale (OFS) component of 62.50 lakh shares
• ₹116 to ₹122: IPO price band per share
• ₹13,420: Minimum investment amount required by a retail investor

IPO Details:

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• Issue Open Date: March 9, Monday
• Issue Close Date: March 11, Wednesday
• Allotment Date: March 12, Thursday
• Listing Date: March 16, Monday
• Lot Size: 110 shares

Company Overview:

Rajputana Stainless Ltd is a stainless-steel products manufacturer that markets its products under the ‘RSL’ brand. The company operates an integrated production setup with consistently high-capacity utilization. Its melting and rolling operations typically run at nearly full capacity, maintaining utilization rates close to 100%.

Financials:

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• The company plans to deploy ₹98 crore from IPO proceeds towards repayment of borrowings, reducing its Total Debt/Equity from 0.8x to 0.2x.
• At the upper price band of ₹122, Rajputana Stainless IPO is valued at a P/E of 25.6x and EV/EBITDA of 12.6x on a post-issue basis.

Recommendation:

SBI Securities recommends investors to subscribe to the issue at the cut-off price for a long-term investment horizon.