Rajputana Industries IPO: Issue Price And Day 1 Subscription Status

The initial public offering (IPO) of Rajputana Industries Limited opened for subscription on Tuesday. The Rajputana Industries IPO is a book-built issue valued at Rs 23.88 crores, consisting of a fresh issue of 62.85 lakh shares.

The price band for the IPO has been set between Rs 36 and Rs 38 per share. Retail investors can apply for a minimum lot of 3,000 shares, which requires an investment of Rs 1,14,000. High Net-Worth Individuals must apply for at least 6,000 shares, amounting to Rs 2,28,000.

The IPO will close on August 1. Allotment of shares is expected to be finalised on August 2, with the tentative listing date on NSE SME set for August 6.

As per the company's red herring prospectus, 17.09% of the shares offered is reserved to QIBs, 14.32% to NII, 31.98% to retail investors and 25.63% to Anchor investors.

Holani Consultants Private Ltd. is the book-running lead manager for this IPO, while Bigshare Services Pvt. Ltd. is the registrar. Holani Consultants will also act as the market maker.

Established in 2011, Rajputana Industries Ltd. specialises in manufacturing a diverse range of non-ferrous metal products, including copper, aluminum, brass, and various alloys sourced from recycled scrap metal. The company processes scrap metal into billets of various metals such as aluminum, copper, and brass at its manufacturing facility in Sikar, Rajasthan.

These billets are then used to produce products like copper rods, aluminum rods, copper mother tubes, brass wires, and super-enamelled copper conductors.

The proceeds from the Rajputana Industries IPO will primarily support the company’s working capital requirements and facilitate the purchase of a grid solar power generating system. Additionally, the proceeds will be used for general corporate purposes, enhancing the company's operational and financial stability.

Rajputana Industries Ltd. has demonstrated strong financial performance with a revenue increase of 28.11% for the financial year ending March 31, 2024, compared to the previous year. The company’s profit after tax (PAT) saw a rise of 65.54% over the same period, reflecting robust growth and improved profitability.