Gujarat-based Stainless-Steel Company Rajputana Stainless Limited, engaged in the business of manufacturing of long and flat stainless-steel products comprising of billets, forging ingots, rolled black bar, rolled bright bar, flat & patti and other ancillary products under the brand name of “RSL”, has refiled its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO).
The Company had filed its IPO papers with Sebi on December 30, 2024.
The IPO, with a face value of Rs 10, is a mix of fresh issue of shares up to 14.65 million equity shares and an offer-for-sale of up to 6.25 million shares by Shankarlal Deepchand Mehta.
The proceeds from the fresh issue to the extent of Rs 18.31 crore funding capital expenditure requirements in relation to the setting up of the Proposed Facility; Rs 98 crore for full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the Company; and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50% of the Offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Rajputana Stainless specializes in manufacturing a wide range of long and flat stainless-steel products, including billets, forging ingots, rolled black bars, rolled bright bars, flats, pattis, and other ancillary offerings under the brand name of “RSL”. Its diverse product portfolio spans over 80 distinct stainless-steel grades. Presently, it operates exclusively on Business-to-Business (“B2B”), catering to a customer base that primarily comprises manufacturers and traders.
The company primarily serves the domestic market through direct sales and an extensive network of traders. Additionally, it exports its products to eight international markets: the UAE, USA, Turkey, Portugal, South Africa, Czech Republic, Kuwait, and Poland.
Leveraging its expertise, advanced processes, and infrastructure, Rajputana Stainless caters to a variety of industries. Its products are used across a diverse range of industries, including bar processing, seamless pipes, forging, wire manufacturing, engineering, casting, fasteners, utensils manufacturing, pump and shaft and auto industry.
Since its inception, the company has produced and delivered over 5 lakhs metric tonnes of stainless-steel products from Fiscal 2006 to Fiscal 2024, earning a reputation as a trusted vendor. Over the years, it has established strong customer relationships. During the period ending Fiscal 2024, it served 385 customers, out of which 150 customers have been associated with the company for over three years, which contributing ₹607.58 crore or 66.78% of the revenue from operations in Fiscal 2024.
The majority of its revenue comes from the domestic market, with sales distributed across 13 states and 2 union territories.
Rajputana Stainless operates a state-of-the-art manufacturing facility spanning approximately 35,196.98 square meters, located on Halol Kalol Road in Kalol, Panchmahal, Gujarat. The facility is equipped with advanced machinery, including an induction furnace, Argon Oxygen Decarburizer (AOD), Continuous Casting Machine (CCM), heat treatment systems, oxygen and nitrogen plants, a rolling mill, and a bright bar shop. With a combination of mechanized processes and skilled human expertise, the facility maintains high manufacturing standards.
As of December 31, 2024, the facility has an installed melting capacity of 48,000 MTPA, rolling capacity of 36,000 MTPA, and bright bar capacity of 6,000 MTPA.
The Company’s revenue from operations was ₹947.67 crore in Fiscal 2023 to ₹909.80 crore in Fiscal 2024. Profit after tax increased by 31.54% from ₹24.04 crore in Fiscal 2023 to ₹31.63 crore in Fiscal 2024.
For the nine months ended December 31, 2024, revenue from operations stood at Rs 684.13 crore, and profit after tax stood at Rs 31.58 crore.
Nirbhay Capital Services Private Limited is the sole book-running lead manager and Kfin Technologies Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
Leave a Reply