The IPO with a face value of Rs 10 is entirely a fresh issue of shares up to Rs 150 crore with no offer for sale component.
FinTech BizNews Service
Mumbai, 23 December, 2024: Jaipur-based Jajoo Rashmi Refractories Limited manufacturer and exporter of various grades of ferro alloys, such as, ferro silicon, ferro manganese and silico manganese, an essential raw material in manufacturing of steel in the steel industry, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise Rs 150 crore through Initial Public Offering (IPO). The IPO with a face value of Rs 10 is entirely a fresh issue of shares up to Rs 150 crore with no offer for sale component. The proceeds from the fresh issue to the extent of Rs 61.83 crore will be used for part finance the cost of establishing new manufacturing facilities to expand its production capabilities of ferro alloys in the Proposed Bokaro Project, Rs 47.67 crore for funding working capital requirements of its Company and general corporate purposes. The Issue is being made through the book-building process, wherein not more than 50% of the Issue 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.
Jajoo Rashmi Refactories, the flagship entity of the Jajoo Rashmi Group, has a legacy of over two decades. Established in 1995 with its first manufacturing unit in Jaipur, the group began as a manufacturer, trader, and exporter of various refractory products, catering primarily to the global steel manufacturing industry. Initially, the company focused on producing quartz powder. Over the years, it expanded its product portfolio to include diverse refractory products such as ramming mass, casting powder, and nozzle filling compounds. Additionally, the company ventured into manufacturing and exporting various grades of ferro alloys, including ferro silicon, ferro manganese, and silico manganese.
Leveraging its extensive experience, Jajoo Rashmi Refactories has also automated several processes in its West Bengal manufacturing unit, reducing reliance on manual labor and ensuring consistent quality in its products. The company specializes in a wide range of refractory products designed to endure high temperatures while retaining their physical and chemical properties without melting or breaking. These products are tailored to meet the demands of steel manufacturers worldwide. Exports is the backbone of Jajoo Rashmi Refactories’ operations, contributing significantly to its revenue. For the three-month period ended June 30, 2024, and the fiscal year ended March 31, 2024, export operations accounted for 90.97% and 91.47% of the company's revenue, respectively. Its export network spans 29 countries, including regions in the Middle East, Africa, Southeast Asia, South Asia, Western Europe, and East Asia.
Domestically, the company operates three zero-waste manufacturing units in Jaipur (Rajasthan), Kalyaneshwari (West Bengal), and Kandla SEZ (Gujarat). The Kandla unit, located within a Special Economic Zone (SEZ), is a 100% export-oriented facility. Together, these units boast a cumulative installed production capacity of 78,000 MTPA. To further bolster its operations, the company is expanding its production capabilities by establishing a new facility in Bokaro, Jharkhand, to increase its ferro alloys output.
Maintaining quality is a cornerstone of the company’s operations. Each manufacturing unit is equipped with a dedicated quality control and assurance team, complemented by third-party quality agencies, to conduct thorough testing of final products before dispatch. The Company's revenue from operations increased by 43.12% from Rs 233.39 crore in Fiscal 2022 to Rs 334.03 crore in Fiscal 2024. Profit after tax increased by 176.81% from Rs 8.77 crore in Fiscal 2022 to Rs 24.28 crore in Fiscal 2024. For the three months ended June 30, 2024, revenue from operations stood at Rs 117.45 crore and profit after tax stood at Rs 6.39 crore. Unistone Capital Private Limited is the sole book-running lead manager and Bigshare Services Private 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.
