Rajputana Industries Ltd IPO: Review, Valuation, Date & GMP

Rajputana Industries Limited IPO - Complete Overview

Rajputana Industries Limited IPO an SME IPO is a book-built issue of Rs.23.88 crore by Rajputana Industries Limited which was established in 2011 and uses recycled waste metal to create a broad variety of non-ferrous metal products in copper, brass, aluminum, and other alloys. The company uses scrap metal that is purchased from open markets to make billets of metals like copper, brass, aluminum, etc. 

The waste metal is recycled in the company's Sikar, Rajasthan, manufacturing facility and turned into billets. These billets are either sold by the company to different manufacturers or are used in the production of copper rods, aluminum rods, copper mother tubes, brass wires, super-enameled copper conductors, and a host of other items. Depending on the needs of the clientele and/or market demand, these wires, tubes, rods, billets, and bars are produced in a range of sizes and forms.

The company is producing cables, which are mostly utilized in the construction sector, particularly in residential buildings, and as underwater cables for motors, to broaden its product line. By using the manufacturing plant's extra space, the proposed cable factory will be erected in the business's current production facility.

The company employed 98 people full-time as of July 10, 2024. These workers were in the following departments: production and operations, quality control, compliance, maintenance, marketing and logistics, accounting and finance, and permanent employees.

The company plans to launch its SME IPO on July 30, 2024.

 

Rajputana Industries Limited IPO Overview

Rajputana Industries Limited's IPO of Rs.23.88 crore comprises a wholly Fresh Issue of 62.85 lac Shares (amounting to Rs.23.88 crores). This SME IPO will be available to investors on July 30, 2024, and conclude on August 1, 2024. The anticipated listing date for the IPO is Tuesday, August 6, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.36 to Rs.38.

If you want to apply for the IPO, Click Here to Open a Demat Account.

Company Financial

The company's revenue increased by 28.11%, while profit after tax (PAT) increased by 65.54% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.32,701.29 lac.

• The net worth of the company is Rs.3,257.20 lac.

• The company's EBITDA is Rs.3,572.45 lac.

• The total assets of the company are Rs.14,974.8 lac.
  
  

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	14,974.81	11,781.27	10,236.66
Total Revenue	32,701.29	25,524.98	24,450.96
PAT	512.64	309.67	263.77
Net Worth	3,257.20	2,743.85	1,712.39
Borrowing	2,936.30	3,001.61	2,537.98

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lac)

Net Cash Flow In Multiple Activities	30 Sep 2023	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	736.17	-338.23	881.96
Net Cash Flow Investing Activities	-157.13	-212.84	-63.94
Net Cash Flow Financing Activities	-529.07	539.69	-819.34

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Fund its working capital requirements.

• Buy a Grid Solar Power Generating System.

• Corporate Purposes.

Peers of Rajputana Industries Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Nupur Recyclers Limited	10	1.54	62.14
Baheti Recycling Industries Limited	10	6.94	40.20

 

Evaluation

The price of this IPO is Rs.36 to Rs.38 for each Share.

Evaluation Of P/E Ratio

Considering the FY ended 31 March 2024, with EPS of Rs.2.19 from the last year, the resulting P/E ratio is 17.35x.

Considering the weighted EPS of Rs.1.75 for the last three years, the P/E ratio is 21.71x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 44.35x.

Particulars	P/E Ratio (x)
Highest	59.04
Lowest	29.66
Average	44.35

In simple words, the P/E ratio of Rajputana Industries Limited-IPO (17.35x), compared with the industry’s average P/E of 44.35x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• Senior management with extensive experience and skilled personnel.

• Long-standing ties with current clients.

• Emphasis on quality.

• Established manufacturing facility.

• Creative ideas.

• Knowledge and expertise in the industry.
  
  

IPO’s Weaknesses

• During fiscal years 2021 and 2022, the company's working capital was negative. The operational performance may suffer if working capital requirements are not maintained.

• Daily, weekly, and monthly price fluctuations are restricted, which might negatively impact a shareholder's capacity to sell equity shares or the price at which it can do so at a given moment.

• The market in which it works is quite volatile, particularly when it comes to copper, brass, and aluminum pricing.

• Most of the clients are buy orders only and don't get into long-term contracts.

• The Net Proceeds of the Issue may not be fully utilized by the Company for the purposes specified in FY 2024–2025.

• The company has experienced negative cash flow in various activities and may continue in the future which could affect the company’s performance.

IPO GMP Today

Rajputana Industries Limited IPO’s latest GMP is Rs.45.

 

Rajputana Industries Limited IPO Timetable (Tentative)

The IPO is scheduled from July 30 to August 1, 2024, with allotment on August 2, 2024 refund initiation on August 5, and listing on August 6, 2024.

Events	Date
IPO Opening Date	July 30, 2024
IPO Closing Date	August 1, 2024
IPO Allotment Date	August 2, 2024
Refund Initiation	August 5, 2024
IPO Listing Date	August 6, 2024

 

Rajputana Industries Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 30, close on August 1, and offer a total issue size of 6,285,000 Shares (aggregating up to Rs.23.88 Cr) comprising a whole fresh issue size of 6,285,000 Shares (totaling up to Rs.23.88 Cr).

IPO Opening & Closing Date	July 30, 2024 to August 1, 2024
Face Value	Rs.10 per Share
Issue Size	6,285,000 Shares (totaling up to Rs.23.88 Cr).
Offer For Sale	NA
Fresh Issue	6,285,000 Shares (totaling up to Rs.23.88 Cr).
Listing At	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Rajputana Industries Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (3000 Shares) amounting to Rs.114000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (6000 Shares) amounting to Rs.228000.

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

 

Rajputana Industries Limited IPO Reservation

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

 

Promoters And Management Of Rajputana Industries Limited IPO

• M/s Shera Energy Limited

• M/s Isha Infrapower Private Limited

• Mrs. Shivani Sheikh

• Mr. Sheikh Naseem

Pre-Issue Promoter Shareholding	92.15%
Post-Issue Promoter Shareholding	-

Rajputana Industries Limited IPO Lead Managers

• Holani Consultants Private Limited.
  
  

 

Dividend Policy

The company has no formal dividend policy.

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

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 IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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