Rajputana Stainless Withdraws Anchor Book for Non-Compliance with SEBI Regulations Ahead of Rs 255-Crore IPO Launch

Rajputana Stainless Withdraws Anchor Book Ahead of IPO

Rajputana Stainless, a Gujarat-based stainless steel manufacturing company, has decided to withdraw its anchor book after managing to close with only one institutional investor on March 6.

The company is raising Rs 254.98 crore via its initial public offering (IPO) at the upper end of the price band of Rs 116-122 per share. The offer consists of a fresh issue of 1.46 crore shares worth Rs 178.73 crore and an offer-for-sale of 62.5 lakh shares worth Rs 76.25 crore.

The IPO, which is a combination of fresh issue and offer-for-sale, will open for public subscription on March 9 and close on March 11. The company had launched its anchor book on March 6 and attracted only one anchor investor, Shine Star Build Cap Private Limited, which acquired 8.19 lakh shares in the company for Rs 10 crore against the proposed anchor book of Rs 76.49 crore.

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As per the SEBI regulations, a company carrying an anchor book worth up to Rs 250 crore must attract a minimum of two anchor investors and a maximum of 15 anchor investors, subject to a minimum allotment of Rs 5 crore per anchor investor.

The company has reserved half of its offer size for qualified institutional buyers (QIB), which is Rs 127.49 crore of the Rs 254.98-crore offer, 15 percent for non-institutional investors, and 35 percent for retail investors.

The proceeds from the fresh issue will be utilized as follows: 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 repaying partial debt, and the remainder for general corporate purposes.

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

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