Rajputana Biodiesel IPO: GMP, Price, Date, Review

Rajputana Biodiesel IPO-Complete Overview

Rajputana Biodiesel IPO under the SME IPO category is a book-built issue of Rs.24.70 crore by Rajputana Biodiesel Limited, incorporated in 2016 to produce and provide biofuels and associated products like glycerin and fatty acids.

The production facilities of the company are located at G24 RIICO Industrial Area, Phulera, Rajasthan 303338 rectangular within 4000 square meters. The organization is licensed to produce thirty kiloliters per day (kl/pd) and its available set-up can only produce twenty-four kiloliters per day (kl/pd).

The products manufactured by Rajputana Biodiesel include Bio-Diesel, Crude Glycerin, Castic Potash Flakes, Waste Sludge, Used Cooking Oil, Esterified Fatty Acid, Methanol, Citric Acid, Refined Rice Oil, Crude Sunflower Oil, Sodium Methoxide, RBD Palm Sterin, Job Work: semi-refining of glycerine for other manufacturers, and Fats.

Rajputana Biodiesel IPO Overview

This Rajputana Biodiesel IPO date is on 26 November 2024, and its ‘initial public offering’ will end on 28 November 2024. 

The Rs.24.70 crore new SME IPO comprises a wholly fresh issue of 19 lac Shares. 

This upcoming IPO date is from November 26 to November 28, 2024. Rajputana Biodiesel IPO Price is Rs.123 to Rs.130 for each Share. 

The expected Rajputana Biodiesel IPO listing date is Tuesday, 03 December 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO Click Here

Company Financial

The company’s revenue grew by 128% and PAT increased by 168% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Sales Breakdown  

(Amount in lac)

State-wise Revenue Breakdown  

(Amount in lac)

The Objective of the Issue

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

• loan for capital expenditures needed to expand the current manufacturing facility (the Project) to the subsidiary, Nirvaanraj Energy Private Limited, located at H No. 576, Sheel Kunj Ph- II, Roorkee Road, Dist.- Meerut, Meerut, Uttar Pradesh, India, 250001 (NEPL).

• Financing the business's working capital needs.

• General corporate purposes.

Peers of Rajputana Biodiesel Ltd.

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

Evaluation

The Rajputana Biodiesel Limited IPO price is Rs.123 to Rs.130 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.9.16 from the last year, the resulting P/E ratio is 14.19x.

Considering the weighted EPS of Rs.6.76 for the last three years, the P/E ratio is 19.23x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 51.41.

IPO's Strengths 

• Skillful and competent figureheads.

• Loyalty of Clients.

• Active data entry operations or the task of data processing.

• Steady financial Status.

• Woman empowerment is a priority area of the Organization.

• Expansion Possibility due to wastage in supply.

IPO’s Weaknesses

• Dependency on Regulation: The company’s results are highly influenced by the government’s stance and laws governing the biofuels sector, which could alter at any moment.

• Volatility of Raw Materials: Changes in the supply and price of raw materials (e.g. used frying oil) may result in changes in production costs.

• Competition in the Industry: The biofuel industry is highly competitive and demands creativity and low costs to retain leadership.

• Operational Hurdles: There may be revenue and profit implications in the short run due to production or distribution delays.

Rajputana Biodiesel IPO GMP

IPO GMP today is Rs.65 as of 21 November 2024. With a price of Rs.130 per Share, the expected Rajputana Biodiesel IPO listing price is Rs.195 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from November 26 to November 28, 2024, with allotment on November 29, refund initiation on November 29, and listing on December 03, 2024.

Rajputana Biodiesel IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 1,900,000 Shares (Rs.24.70 Cr).

IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,30,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.2,60,000.

IPO Reservation (% of Net Issue)

Promoters And Management of Rajputana Biodiesel Ltd.

• Mr. Sarthak Soni

• Mr. Tanay Attar

• Mr. Sudeep Soni

• Mrs. Madhuri Surana 

IPO Lead Managers

• GYR Capital Advisors Private Limited.

Dividend Policy

The company has not paid dividends in the last three FYs.

Conclusion

Rajputana Biodiesel IPO presents appealing growth potential, given the vast biofuel market supported by the financial performance and a lucrative P/E ratio. The funds raised will be utilized for enhancing the company’s infrastructure, working capital, and other corporate purposes. It has discipline and customer loyalty as some of its strong points but adversity includes regulatory dependency and stiff competition in the market. However, investors must consider the valuation and the potential of this offer before investing in it.

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:

DISCLAIMER: NOT any 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. 

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