Rajgor Castor Derivatives Ltd. IPO: Review, Valuation & GMP Today

Rajgor Castor Derivatives Limited - Complete Overview

Founded in 2018, Rajgor Castor Derivatives Limited is primarily involved in producing Refined Castor Oil First Stage Grade (F.S.G.), Castor De-Oiled Cake, and High Protein Castor De-Oiled Cake for the domestic market. 

The company maintains testing laboratories on its manufacturing premises and boasts a well-equipped quality control department staffed by experienced professionals to ensure a seamless manufacturing process.

The company distributes its products in various states across India, including Gujarat, Delhi, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Telangana, Uttar Pradesh, and Uttarakhand.

As of March 31, 2023, the company has achieved a revenue of Rs 42,878.06 lacs.

 

What does the company do?

Rajgor Castor Derivatives Limited is primarily involved in the production of Refined Castor Oil First Stage Grade (F.S.G.), Castor De-Oiled Cake, and High Protein Castor De-Oiled Cake for the domestic market. 

 

 

IPO Overview

Rajgor Castor Derivatives Limited IPO date is scheduled from October 17, 2023, to October 20, 2023. The SME IPO is expected to be listed on October 31, 2023. 

The company aims to raise Rs. 47.81 Cr. through this upcoming SME IPO, categorised as a Book Built Issue IPO. The Rajgor Castor Derivatives Limited IPO price has been set between the range of Rs. 47 to Rs. 50 per share. 

In terms of allocation, the company has earmarked 50% of the shares for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

Rajgor Castor Derivatives Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	17 October 2023
IPO Closing Date	20 October 2023
IPO Allotment Date	26 October 2023
Refund initiation	27 October 2023
IPO Listing Date	31 October 2023

 

Rajgor Castor Derivatives Limited IPO Details 

IPO Opening & Closing Date	17 October to 20 October 2023
Face value	Rs.10 per Share
Issue Price	Rs. 47 to Rs. 50 per Share
Lot Size	3000 Shares
Price of 1 Lot	Rs. 150,000
Issue Size	9,561,000 Shares (aggregating up to Rs. 47.81 Cr)
Offer for sale	666,000 shares of Rs.10 (aggregating up to Rs. 3.33 Cr)
Fresh issue	8,895,000 Shares (aggregating up to Rs. 44.48 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Skyline Financial Services Pvt. Ltd.

 

Rajgor Castor Derivatives Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Rajgor Castor Derivatives Limited IPO Reservation

Institutional Share Portion	50%
Non-Institutional share Portion	15%
Retail share Portion	35%

 

Company Financial

Amount in Lakhs

Period	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	7,782.64	3,753.42	2,578.48
Total Revenue	42,887.35	4,091.30	1,100.69
PAT	554.47	52.19	-180.18
Net worth	2,365.55	201.90	149.71
Reserve & Surplus	2,150.97	190.12	137.93
Total Borrowings	4,450.93	1,809.51	2,286.28

 

Category-wise Revenue Bifurcation of the company

(Amount in Lakhs)

Particular	31 Mar 2023	31 Mar 2022	31 Mar 2021
Revenue from Trading	856.53	3,820.22	849.30
Revenue from Manufacturing	42006.31	-	-
Other operating revenue (Revenue from lease rental and Miscellaneous Income)	15.21	146.99	125.36
Total	42,878.06	3,967.21	974.66

 

Product-wise Revenue Bifurcation of the company

(Amount in Lakhs)

Particular	31 Mar 2023	31 Mar 2022	31 Mar 2021
A. Revenue from Trading
Castor Seed	-	2,768.67	827.04
Guar Seeds	670.83	-	-
Chana	185.70	-	-
Kala Cotton	-	-	22.26
Castor FSG Oil	-	1,051.55	-
Total (A)	856.53	3,820.22	849.30
B. Revenue from Manufacturing
Refined Castor Oil First Stage Grade	37,267.82	-	-
High Protein	959.94	-	-
Castor De Oiled Cake	3,378.01	-	-
Other Byproducts	400.54	-	-
Total (B)	42,006.31	-	-
Total Revenue from Product (A+B)	42,862.85	-	849.30
C. Other Operating Revenue
Revenue from Lease Rental and Miscellaneous Income	15.21	146.99	125.36
Total Revenue from Operations (A+B+C)	42,878.06	3,967.21	974.66

 

State-wise Revenue Bifurcation of the Company

(Amount in Lakhs)

Particular	31 Mar 2023	31 Mar 2022	31 Mar 2021
Gujarat	35,615.02	3,820.22	849.30
Delhi	6,304.10	-	-
Madhya Pradesh	60.47	-	-
Maharashtra	255.39	-	-
Punjab	17.67	-	-
Rajasthan	205.35	-	-
Telangana	11.06	-	-
Uttar Pradesh	369.24	-	-
Uttarakhand	24.55	-	-
Total	42,862.85	3,820.22	849.30

 

Objective of the Issue 

The funds raised from the Issue will be allocated for the following objectives:

• Meeting working capital needs.
• General corporate purposes.
• Covering expenses related to the public offer.

 

Promoters and Management of Rajgor Castor Derivatives Limited

Mr. Brijeshkumar Vasantlal Rajgor, Vasantkumar Shankarlal Rajgor, and Maheshkumar Shankarlal Rajgor are the promoters of the company.

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding

 

Peer Comparison

Company Name	EPS (Rs.)	P/E Ratio	Revenue from operations (Rs. in Lakhs)
Rajgor Castor Derivatives Limited	30.06	-	42,878.06
Jayant Agro Organics Limited	14.02	10.47	113,982.36
NK Industries Limited	(2.68)	Negative	240.56

 

IPO's Valuations

According to the information provided in the company's DRHP for assessing the IPO valuation, the EPS of the share is Rs. 30.06 and the Rajgor Castor Derivatives Limited IPO price falls within the range of Rs. 47 to Rs. 50 per share. Based on the upper band of the issue price the P/E ratio of the company is 1.66.

 

Dividend Policy 

As per the Rajgor Castor Derivatives Limited IPO DRHP, the company did not distribute any dividends in the previous year, and the future dividend payments are contingent upon the company's future performance.

 

IPO's Strengths

• Proficient Leadership Team.
• Expandable Business Model.
• Robust Quality Control and Assurance Measures.
• Varied Business Model and Customer Portfolio.

 

IPO Weaknesses 

• The company's promoters are currently involved in specific legal disputes and claims.
• The company's operations are subject to seasonal fluctuations.
• The company typically conducts its business through purchase orders and does not engage in long-term contracts with most customers.
• The company relies on a limited number of customers for its sales.
• A significant portion of the company's revenue is generated from its operations in the Gujarat region.
• The company requires various approvals, NOCs, licenses, registrations, and permits as part of its regular business operations.
• Failure to comply with amendments in Safety, Health, Environmental laws, and other relevant regulations could have adverse effects on the company's performance.
• The company operates in a competitive business environment, both domestically and globally.
• The company has experienced negative cash flows in the past.
• In the last twelve months, the company issued Equity Shares at a price lower than the Issue Price.

 

 

IPO GMP Today

The Latest GMP of Rajgor Castor Derivatives SME IPO GMP is Rs. 10.

 

Conclusion

The company operates within a competitive environment and has faced negative cash flow in the past. The significant increase in the company's profits in FY 23 may appear to be more of a cosmetic enhancement for the IPO. It is recommended that investors exercise caution and conduct a thorough analysis before considering an investment in this company to mitigate potential negative outcomes.

 

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.

 

 

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