Rajputana Biodiesel Lists at 90% Premium, Hits Upper Circuit on NSE SME

Rajputana Biodiesel Limited, established in 2016 and specializing in biofuel production with a 24 KL/day capacity facility in Phulera, Rajasthan, made its market debut on Tuesday, 3rd December 2024, on the NSE SME platform.

Rajputana Biodiesel Listing Details

• Listing Time & Price: At market open, Rajputana Biodiesel share price listed at ₹247 on NSE SME, marking a strong start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. Rajputana Biodiesel had set its IPO price band from ₹123 to ₹130 per share, with the final issue price being fixed at the upper end of ₹130.
• Percentage Change: By 10:03:46 AM IST, the stock hit the upper circuit at ₹259.35, extending its gains to 99.49% over the issue price.

Rajputana Biodiesel First-Day Trading Performance

• Price Range: Hit a high of ₹259.35 and low of ₹247 in early trading, with VWAP at ₹253.10.
• Market Capitalisation: As of 10:03:46 AM IST, the company's market capitalisation stood at ₹182.41 crore.
• Trading Volume: The traded volume was 2.83 lakh shares with a traded value of ₹7.16 crore.

Rajputana Biodiesel Market Sentiment and Analysis

• Market Reaction: Strong buying interest with the stock hitting the upper circuit, evidenced by buy orders for 29.24 lakh shares with no sellers.
• Subscription Rate: The IPO was massively oversubscribed by 718.81 times (as of November 28, 2024, 6:19:59 PM), with NIIs leading at 1,345.96 times subscription, followed by retail investors at 746.57 times, and QIBs at 177.38 times.
• Trading Range: Price band set between ₹234.65 and ₹259.35, with the stock trading at the upper band.

Rajputana Biodiesel Growth Drivers and Challenges

Expected drivers of future performance:

• Strategic location in RIICO Industrial Area
• Diverse product portfolio including biodiesel and glycerine
• Strong focus on renewable energy sector
• Expansion plans through subsidiary

Potential challenges:

• High debt-to-equity ratio of 1.26
• Limited production capacity
• Raw material price fluctuations
• Regulatory risks in biofuel sector

Utilisation of IPO Proceeds

Rajputana Biodiesel plans to use the funds for:

• Subsidiary expansion plans
• Working capital requirements
• General corporate purposes

Financial Performance

The company has shown strong growth:

• Revenue increased by 128% to ₹53.68 crore in FY2024 from ₹23.54 crore in FY2023
• Profit After Tax rose by 168% to ₹4.52 crore in FY2024 from ₹1.69 crore in FY2023
• Four months ended July 2024 showed revenue of ₹27.79 crore with PAT of ₹2.60 crore

As Rajputana Biodiesel begins its journey as a listed entity, market participants will closely monitor its ability to execute expansion plans and maintain growth momentum. The strong listing and immediate upper circuit suggest robust investor confidence in the company's prospects in the growing biofuel sector.