Rajputana Stainless Limited is a stainless steel manufacturer engaged in producing long and flat stainless steel products such as billets, forging ingots, rolled bars, bright bars and flat products. The company offers over 80 grades of stainless steel used across multiple industries.
The company operates under a B2B model and supplies materials to industries including automotive, oil & gas, aerospace, forging, seamless pipe manufacturing and utensil manufacturing. Its primary manufacturing facility is located in Gujarat.
Rajputana Stainless also exports products to several international markets including the UAE, USA, Turkey, Kuwait and Poland. The company plans to expand operations through a stainless steel seamless pipe manufacturing facility funded partly through IPO proceeds.
Competitive Advantages
Diverse stainless steel product portfolio
Export presence across multiple countries
Integrated manufacturing operations
Established B2B distribution network
IPO Snapshot
Company Name
Rajputana Stainless Limited
Sector
Steel / Stainless Steel Manufacturing
Founded
1991
Headquarters
Kalol, Gujarat, India
Issue Size
₹255 Crore
Fresh Issue
~1.46 Crore Shares
Offer for Sale
~62.5 Lakh Shares
Market Cap after listing
Estimated ~₹900–1000 Cr
Promoter Holding
Promoter: Shankarlal Deepchand Mehta & others
Retail Quota
~35%
QIB Quota
~50%
NII Quota
~15%
Financial Performance
Year
Revenue (₹ Cr)
EBITDA (₹ Cr)
Net Profit (₹ Cr)
EPS (₹)
Net Worth (₹ Cr)
Total Assets (₹ Cr)
Debt (₹ Cr)
FY22
766
30
9.3
-
57.7
281
91.8
FY23
947
43.8
24.0
-
81.1
297
79.8
FY24
909
59.4
31.0
4.59
112.2
324
79.7
FY25 (Annualised)
912
74.6
42.1
-
143.8
393
90.3
Revenue Trend: Revenue shows cyclical movement due to commodity price changes but remains around ₹900 Cr annually.
Profit Growth: Net profit improved significantly from ₹9 Cr (FY22) to ₹31+ Cr (FY24).
Margins: EBITDA margin improved to ~8%, indicating operational efficiency improvements.
Key Financial Ratios
Metric
Value
Status
PE Ratio (IPO)
~26–27x
Neutral
Industry PE
~15x
Moderate
PB Ratio
~5.8x
Expensive
ROE
~21.9%
Strong
ROCE
~24.9%
Strong
Debt / Equity
~0.6
Moderate
Operating Margin
~8%
Average
Net Margin
~4.6%
Thin
Valuation Analysis
The IPO valuation appears moderate to slightly expensive relative to typical steel sector valuations. Steel companies usually trade at lower multiples due to cyclical demand and commodity price volatility.
Company
Market Cap
PE
ROE
Revenue
Rajputana Stainless (IPO)
~₹900–1000 Cr
~26x
21%
₹900+ Cr
Jindal Stainless
₹60,000+ Cr
~22x
20%+
₹38,000+ Cr
Shyam Metalics
₹20,000+ Cr
~18x
18%
₹12,000+ Cr
Strengths
Diversified stainless steel product portfolio
Growing export footprint
Strong ROE and ROCE metrics
Expansion plan through new manufacturing facility
Long operating history since 1991
Risks
Steel industry is highly cyclical
Revenue sensitive to commodity price fluctuations
Moderate debt levels
Thin net profit margins
High competition from large steel manufacturers
IPO Subscription Data
Category
Shares Offered
Shares Bid
Subscription
Retail
35%
-
0.04x (Day 1)
QIB
50%
-
0.49x (Day 1)
NII
15%
-
-
Total
-
-
0.21x
Grey Market Premium
IPO Price
GMP
Estimated Listing Price
Estimated Gain
₹122
₹15 – ₹20
₹137 – ₹142
12% – 16%
Objects of the Issue
Purpose
Amount
Percentage
New Stainless Steel Pipe Manufacturing Facility
₹183 Cr
Major Portion
Debt Repayment
₹76+ Cr
Significant
Working Capital & Corporate Purposes
Remaining
-
Final Summary
Rajputana Stainless Limited operates in the stainless steel manufacturing industry and offers a diversified product portfolio with over 80 steel grades. The company has demonstrated consistent revenue levels near ₹900 crore with improving profitability and strong return ratios.
While margins remain relatively thin due to the cyclical nature of the steel industry, the company’s operational efficiency and export presence contribute to a stable business profile. The IPO proceeds are intended to support expansion and debt reduction, which could strengthen the balance sheet.
Overall, the IPO represents a mid-sized steel manufacturing company with improving financial performance but operating in a competitive and cyclical sector.
Listing Probability Analysis
Factor
Status
Grey Market Premium
Positive
Subscription Trend
Moderate
Sector Momentum
Neutral
Market Sentiment
Supportive
Estimated Listing Probability
High Listing Gain Probability: 30%
Moderate Listing Gain Probability: 45%
Low / Flat Listing Probability: 25%
**Disclaimer: We are not SEBI registered. The content provided is for educational and informational purposes only and should not be considered investment advice. Stock market investments are subject to market risks. Please consult a SEBI-registered financial advisor before making investment decisions.**
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