Rajgor Castor Derivatives IPO opens October 17, price band fixed at Rs 47-50

Rajgor Castor Derivatives IPO to open on October 17

Ahmedabad-based Rajgor Castor Derivatives' initial public offering (IPO) opens for subscription on October 17, the third issue to open this month. The price band for the offer has been fixed at Rs 47-50 a share.

The castor oil manufacturer is looking to raise Rs 47.8 crore at the upper price band. The offer comprises a fresh issue of 88.95 lakh shares worth Rs 44.48 crore and an offer-for-sale of 6.66 lakh shares worth Rs 3.33 crore by promoters.

The anchor book will open for a day on October 16 and the offer closes October 20.

The fresh issue proceeds will be used to meet working capital requirements amounting to Rs 29.92 crore and the remaining funds will be used for general corporate purposes, the company has said.

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Business & Financials

The Rajgor family, which is in the business of manufacturing castor oil, castor oil cake, high-protein oil cake in along with trading in agro-commodity, follows the B2B business model.

On the financials front, Rajgor Castor Derivatives recorded healthy earnings growth in the past fiscal years, with net profit rising sharply from Rs 0.52 crore to Rs 5.54 crore on a year-on-year basis. Revenue jumped to Rs 428.78 crore from Rs 39.67 crore.

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In the quarter ended June FY24, the net profit stood at Rs 1.93 crore on a revenue of Rs 112.7 crore.

Lot size and listing date

Half of the offer is reserved for qualified institutional buyers, 35 percent for retail investors and the remaining 15 percent for high networth individuals.

Investors can bid for a minimum of 3,000 shares and in multiples of 3,000 shares thereafter. Retail investors can apply only for one lot worth Rs 1.5 lakh as they are allowed to invest up to Rs 2 lakh in the IPO.

The company will finalise the basis of the allotment of shares by October 26 and the shares will be credited to demat accounts of eligible investors by October 30.

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The trading will commence on the NSE Emerge platform from October 31.

Beeline Capital Advisors is the merchant banker to the issue, while Link Intime India is the registrar to the offer.