Rajputana Industries IPO Debuts at 90% Premium

On August 6, Rajputana Industries Limited's Initial Public Offering (IPO) made a significant entry on the NSE SME platform, opening at ₹72.20 per share, a 90% increase from the issue price of ₹38. Early trading saw the stock rise further to ₹75.80, almost doubling its initial value. Throughout the day, over 8.46 lakh shares were traded, amounting to a trade value of ₹6.25 crore, while the company's market valuation reached ₹168.39 crore.

Prior to the IPO, Rajputana Industries secured ₹6.12 crore from anchor investors on July 29, who were allocated 16.11 lakh shares at ₹38 each. The IPO, open from July 30 to August 1, concluded with allotments finalized on August 2. The offering was significantly oversubscribed, achieving an overall subscription rate of 376.41 times. The retail category was oversubscribed 524.61 times, Qualified Institutional Buyers (QIB) subscribed 177.94 times, and Non-Institutional Investors (NII) subscribed 417.95 times.

Rajputana IPO aimed to generate ₹23.88 cr by issuing 62.85 lakh new shares, priced between ₹36 and ₹38 per share. The funds raised will be utilized for enhancing working capital, acquiring a grid solar power generating system, and supporting general corporate purposes. Holani Consultants acted as the book-running lead manager, with Bigshare Services Pvt Ltd serving as the registrar for the IPO.

Established in 2011, Rajputana Industries specializes in manufacturing a variety of non-ferrous metal products, including copper, aluminum, brass, and various alloys, from recycled scrap metal. The company's facility in Sikar, Rajasthan processes scrap metal into billets, which are further produced into rods, wires, and conductors for various industrial applications.

or the financial year ending March 31, 2024, Rajputana Industries reported a 28% increase in revenue, reaching ₹327 crore, and a 65% rise in profit after tax (PAT), amounting to ₹5 crore.

To Summarize

Rajputana Industries' shares debuted on the NSE SME platform at ₹72.20, a 90% premium over the IPO price of ₹38. The stock climbed to ₹75.80 early in trading, reflecting a 5% increase from the opening price and nearly doubling the issue price. 

Strong oversubscription and robust initial performance indicate market confidence in the company's future prospects. The capital raised will support Rajputana Industries' expansion plans and operational needs, positioning it for continued growth.