IPO Structure
Total Issue Size: ₹255 crore (at upper band)
Fresh Issue: Up to 1.46 crore equity shares
Offer for Sale (OFS): Up to 62.5 lakh shares by promoter
> Use of Proceeds (Fresh Issue Portion)
Setting up a new manufacturing facility in Panchmahal, Gujarat
Product portfolio expansion
Debt repayment
General corporate purposes
Balanced structure: Not 100% OFS — which is a positive signal.
About the Company
Incorporated in 1991 (earlier Rajputana Steel Castings), the company restructured and became Rajputana Stainless in 2007.
> Business Profile:
Manufactures stainless steel long and flat products:
Billets
Forging ingots
Rolled black bars
Serves:
Domestic market (direct + traders)
Exports to UAE, US, Turkey, Kuwait, and Poland
Industry Type: Stainless steel manufacturing (cyclical, commodity-linked)
Financial Snapshot
Particulars FY24 FY25
Revenue ₹910 Cr ₹932 Cr
Net Profit ₹31.6 Cr ₹40 Cr
Observations:
✔ Revenue growth: Modest (~2.4%)
✔ Profit growth: Strong (~26%)
✔ Margin improvement visible
But revenue growth is relatively slow compared to profit jump — investors should check whether margin expansion is sustainable.
Key Positives
✔ Expansion plan in Gujarat
✔ Profit growth improving
✔ Exports diversification
✔ Debt repayment from IPO proceeds
Key Risks
⚠ Commodity price volatility
⚠ Cyclical industry
⚠ Revenue growth modest
⚠ Margin sustainability question
⚠ Promoter OFS portion present
What Investors Should Check in DRHP
Before applying:
Debt-to-equity ratio
ROE / ROCE
Cash flow from operations
Customer concentration
Raw material dependency
Disclaimer
This IPO analysis is provided for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities.
The content is based on publicly available information and may be subject to change. Investors should carefully read the official RHP/DRHP filed with the Securities and Exchange Board of India (SEBI) and consult a qualified financial advisor before making any investment decision.
IPO investments are subject to market risks. IPORupee shall not be responsible for any losses arising from reliance on this information.
