PS Raj Steels IPO GMP, Price, Date & Allotment Status

PS Raj Steels IPO-Complete Overview

PS Raj Steels IPO under the SME IPO category is a book-build issue of Rs.28.28 Cr (20.20 lac Shares) by PS Raj Steels Limited, which was incorporated in November 2004. The company deals with stainless steel pipes and tubes in India.

The products offered by the company:

• Outer Diameter Pipes ( ½" - 18")

• Nominal Bore (NB) Pipes (from 3/8" - 18")

• Section Pipes (square, rectangular, and oval shapes)

• Slotted Pipes. 

The different products offered by the Company primarily serve the following sectors: food processing, furniture, households, railways, door frames, gates, sugar mills, rice plants, and heat exchangers.

The manufacturing unit of the company is located in Haryana and in an area of 3 acres

 

PS Raj Steels IPO Overview

This PS Raj Steels IPO date is 12 February 2025, and its ‘initial public offering’ will end on 14 February 2025.    

This Rs.28.28 crore new SME IPO comprises a totally fresh issue of 20.20 lac Shares.

This upcoming IPO date is on 12 Feb 2025. The PS Raj Steels IPO Price is Rs.132 to Rs.140 for each Share. 

The expected IPO listing date is 19 Feb 2025, and the listing at NSE and SME.

The GMP of current IPOs can be viewed on our Live IPO GMP page, where you can get the current SME IPO GMP of all open IPOs.

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Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

 

Industry-wise Revenue Breakdown (30 Sep 2024)

(Amount in lac)

 

Industry-wise Revenue Breakdown (FY24)

(Amount in lac)

Industry-wise Revenue Breakdown (FY23)

(Amount in lac)

(Source: RHP)

 

 

The Objective of The Issue

To fulfill the need for working capital.

Peers of PS Raj Steels Ltd. 

 

Evaluation

The IPO price is Rs.132 to Rs.140 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.11.53 from the last year, the resulting P/E ratio is 12.14x.

Considering the weighted EPS of Rs.9.05 for the last three years, the P/E ratio is 15.47x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 48.55x.

In simple words, the P/E ratio of this IPO (12.14x), compared with the industry’s average P/E of 48.55x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• A strong distribution network with customer orientation.

• A team endowed with highly qualified professionals and senior managers.

• An integrated manufacturing facility.

• Long-standing relationship with the stainless-steel industry.

 

IPO’s Weaknesses

• The drop in trading revenue is projected for FY 2025, following the reduction in sales to one of the group subsidiary companies, Steelmint Industries Pvt. Limited. Since this entity is an important customer of the company, such a sales loss can further worsen the company’s overall trading revenue.

• The rapid shift in steel price is an active aspect in the company’s standing; such volatility is subject to global economic conditions, discrepancies in supply and demand, or other possible market movements.

• The company’s production processes require employees to work under dangerously unsafe conditions. Any accident that occurs is likely to result in financial claims against the company and loss of reputation.

 

PS Raj Steels IPO GMP 

PS Raj Steels IPO GMP has not started yet as of 06 Feb 2025.

IPO Timetable (Tentative)

The IPO date is February 12, with allotment on February 17, refund initiation on February 18, and listing on 19 February 2025.

 

PS Raj Steels IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 20,20,000 Shares (Rs.28.28 Cr).

 

PS Raj Steels IPO Lot Details 

The PS Raj Steels Limited IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,40,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.2,80,000.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of PS Raj Steels Ltd.

• Mr. Raj Kumar Gupta

• Mr. Deepak Kumar

• Mr. Gaurav Gupta

• Mr. Vishal Gupta

• Ms. Nikita Gupta

• M/s Raj Kumar HUF

• M/s Deepak Kumar HUF

• M/s Gaurav Gupta HUF.

 

IPO Lead Managers

Khambatta Securities Limited.

 

Dividend Policy

The company has not declared a dividend in the last three years.

Conclusion

The PS Raj Steels IPO appears fully priced and is an opportunity in the stainless-steel business. It has a strong distribution network and an experienced team but is faced with the risks of revenue dependence on group entities and steel price volatility. Presently, the company is trading at a P/E that is lower than the industry average, which could suggest valuation. Investors are encouraged to do their due diligence on the financials, risks, and growth opportunities before applying.

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DISCLAIMER: NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company  Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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