Rajputana Industries Limited's Initial Public Offering (IPO) made a striking debut on August 6 on the NSE SME platform, with shares listing at a remarkable 90 percent premium. The stock opened at Rs 72.20, well above the issue price of Rs 38.
The book-built issue, amounting to Rs 23.88 crore, offered 62.85 lakh new shares priced between Rs 36 and Rs 38. The subscription period ran from July 30 to August 1, with allotment finalised on August 2.
The IPO was subscribed 376.41 times overall. The retail category was oversubscribed by 524.61 times, while the Qualified Institutional Buyers (QIB) and Non-Institutional Investors (NII) categories were subscribed 177.94 times and 417.95 times, respectively. The issue also raised Rs 6.12 crores from anchor investors on July 29.
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The proceeds from the IPO will be directed towards bolstering working capital requirements, purchasing a grid solar power generating system, and supporting general corporate needs. Holani Consultants Pvt Ltd acted as the book-running lead manager, with Bigshare Services Pvt Ltd as the registrar.
Rajputana Industries, established in 2011, specialises in manufacturing a diverse range of non-ferrous metal products, including copper, aluminum, brass, and various alloys, all produced from recycled scrap metal. The company's facility in Sikar, Rajasthan processes scrap metal into billets and further into products such as rods, wires, and conductors, catering to various industrial needs.
The company's revenue increased by 28 percent to Rs 327 crore and profit after tax (PAT) rose by 65 percent to Rs 5 crore, in the financial year ended March 31, 2024.
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