The proceeds from the fresh issue to the extent of Rs 76.50 crore for full or part repayment and/or prepayment of certain outstanding secured borrowings
FinTech BizNews Service
Mumbai, 2 January, 2025: Gujarat-based Stainless-Steel Company Rajputana Stainless Limited, engaged in the business of manufacturing of long and flat stainless-steel products comprising of billets, forging ingots, rolled black bar, rolled bright bar, flat & patti and other ancillary products, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO). The IPO, with a face value of Rs 10, is a mix of fresh issue of shares up to 190 lakh equity shares and an offer-for-sale of up to 35 lakh shares by Shankarlal Deepchand Mehta.
The proceeds from the fresh issue to the extent of Rs 18.31 crore funding capital expenditure requirements in relation to the setting up of the Proposed Facility; Rs 37.68 crore funding Working capital requirement for the Proposed Facility; Rs 76.50 crore for full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the Company; and general corporate purposes. The Offer is being made through the book-building process, wherein not more than 50% of the Offer 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.
Rajputana Stainless specializes in manufacturing a wide range of long and flat stainless-steel products, including billets, forging ingots, rolled black bars, rolled bright bars, flats, pattis, and other ancillary offerings. Its diverse product portfolio spans over 80 distinct stainless-steel grades. The company primarily serves the domestic market through direct sales and an extensive network of traders. Additionally, it exports its products to five international markets: the UAE, USA, Turkey, Kuwait, and Poland. Leveraging its expertise, advanced processes, and infrastructure, Rajputana Stainless caters to a variety of industries. Its stainless-steel products serve as raw materials for sectors such as seamless pipes, engineering, aerospace, forging, oil and gas, pumps and shafts, defense, automotive, aviation, and precision engineering.
Since its inception, the company has manufactured and delivered over 500,000 metric tonnes of stainless-steel products from Fiscal 2006 to Fiscal 2024, earning a reputation as a trusted vendor. Over the years, it has established strong customer relationships. For instance, during Fiscal 2024 and the three-month period ending June 30, 2024, it served 385 and 209 customers, respectively. Approximately 150 customers have been associated with the company for over three years, contributing Rs60,757.67 lakhs or 66.78% of the revenue from operations in Fiscal 2024. The majority of its revenue comes from the domestic market, with sales distributed across 13 states and 2 union territories. Maharashtra, Gujarat, and Uttar Pradesh are its top-performing regions, contributing significantly to its revenue, accounting for 90.15% and 87.10%, 91.19%, and 87.60% of total revenue from operations during the three-month period ending June 30, 2024, and Fiscals 2024, 2023, and 2022, respectively. Rajputana Stainless operates a state-of-the-art manufacturing facility spanning approximately 35,196.98 square meters, located on Halol Kalol Road in Kalol, Panchmahal, Gujarat. The facility is equipped with advanced machinery, including an induction furnace, Argon Oxygen Decarburizer (AOD), Continuous Casting Machine (CCM), heat treatment systems, oxygen and nitrogen plants, a rolling mill, and a bright bar shop. With a combination of mechanized processes and skilled human expertise, the facility maintains high manufacturing standards. As of June 30, 2024, the facility has an installed melting capacity of 48,000 MTPA, rolling capacity of 36,000 MTPA, and bright bar capacity of 6,000 MTPA. Additionally, it features a heat treatment capacity of 25 tonnes per batch and oxygen and nitrogen plants with capacities of 350 cum/hour and 200 cum/hour, respectively. Supporting infrastructure includes storage facilities for raw materials and finished goods, along with stringent quality control measures. the company also engages third-party manufacturing units for job work, including activities such as converting black bars into bright bars, billets into wire rods, annealing, and straightening to meet increasing demand.
During Fiscal 2024 and prior years, third-party units contributed 6,800.27 MT, 3,455.49 MT, and 2,593.34 MT of stainless-steel products, respectively. The Company's revenue from operations was Rs947.67 crore in Fiscal 2023 to Rs909.80 crore in Fiscal 2024. Profit after tax increased by 31.54% from Rs24.04 crore in Fiscal 2023 to Rs31.63 crore in Fiscal 2024. For the three months ended June 30, 2024, revenue from operations stood at Rs 205.28 crore, and profit after tax stood at Rs 10.91 crore.
Nirbhay Capital Services Private Limited is the sole book-running lead manager and Kfin Technologies 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.
