PS Raj Steels Lists at 3.57% Premium on NSE SME, Shows Further Strength in Early Trade

PS Raj Steels Limited, a stainless steel pipes and tubes manufacturer operating since 2004, made a modest entry into the public markets on Wednesday, February 19, 2025. The company, which specializes in manufacturing and supplying a wide range of stainless steel products from its Hisar facility, commenced trading on NSE SME with a reasonable premium and showed additional strength in early trading.

PS Raj Steels Listing Details 

The company's market debut presented a positive correlation between primary market enthusiasm and secondary market valuation:

• Listing Time & Price: When trading commenced at market open, PS Raj Steels shares debuted at ₹145 on NSE SME, showing a decent premium of 3.57% against the issue price of ₹140. This steady opening was supported by the IPO's strong oversubscription of 9.82 times.
• Issue Price Context: The company had fixed the IPO price at ₹140 per share. The market's response validates this pricing given the company's established presence in the stainless steel sector and robust manufacturing capabilities.
• Price Evolution: By 10:37 AM IST, the stock showed further strength, maintaining its gains at ₹145 after hitting an intraday high of ₹147.90, representing a positive gain of 5.64% from the issue price.

First-Day Trading Performance of Chandan Healthcare

The trading activity showed active participation with bullish sentiment:

• Volume and Value: Within the first few hours, trading volume reached 6.44 lakh shares, generating a turnover of ₹9.34 crore, with 100% of traded quantity marked for delivery.
• Demand Dynamics: The stock's trading pattern showed strong buying interest with orders for 39,000 shares against sell orders for 28,000 shares, indicating sustained demand at current levels.

Market Sentiment and Analysis

• Market Reaction: Positive opening followed by sustained performance
• Subscription Rate: The IPO had been subscribed 9.82 times overall
• Category-wise Response: NII portion showed strongest interest at 21.39 times, followed by retail at 10.04 times

Growth Drivers and Challenges 

Expected drivers of future performance:

• Strong distribution network
• Experienced management team
• Integrated manufacturing facility
• Industry expertise
• Strategic location
• Diverse customer base

Potential challenges:

• Working capital intensity
• Raw material price volatility
• Competitive pressures
• Geographic concentration
• Regulatory compliance
• Industry cyclicality

Utilisation of IPO Proceeds 

The ₹28.28 crore raised through fresh issue will be used for:

• Meeting working capital requirement

Financial Performance of PS Raj Steels

The company has shown steady growth:

• Revenue of ₹297.76 crore in FY2024
• H1 FY2025 (ended September 2024) showed revenue of ₹139.12 crore with PAT of ₹3.87 crore
• Net Worth of ₹34.43 crore as of September 2024
• Total borrowings of ₹17.25 crore
• Total assets of ₹55.36 crore as of September 2024

As PS Raj Steels begins its journey as a listed entity, market participants will closely monitor its ability to maintain growth momentum and operational efficiency. The positive listing and subsequent trading pattern reflect investors' confidence in the company's business model and growth prospects in India's stainless steel sector. The company's ability to manage working capital while expanding its distribution network will be crucial for sustaining investor confidence and supporting long-term value creation.