Rajgor Castor IPO Day 3: Issue booked 16.73 times; retail portion subscribed 26 times

Rajgor Castor Derivatives IPO will close for subscription on October 20

The Rajgor Castor Derivatives IPO has been subscribed 16.73 times so far, with bids coming in for 11.45 crore shares against an offer size of 68.49 lakh units. Retail investors bid 26.35 times, high net-worth individuals bought 10.32 times and qualified institutional buyers picked up 10.79 times their respective allotted quota.

The company aims to raise Rs 47.81 crore from the public offer, which closes for subscription on October 20. It 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.

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The small and medium enterprise (SME) IPO’s price band has been fixed at Rs 47-50. Ahead of the public offer, the company raised Rs 13.56 crore from seven anchor investors. NAV Capital VCC - NAV Capital Emerging Star Fund, Neomile Growth Fund - Series I, Moneywise Financial Services, Rajasthan Global Securities, LRSD Securities, VPK Global Ventures and Nexus Global Opportunities Fund took part in the anchor book.

Brijeshkumar Vasantlal Rajgor, Vasantkumar S Rajgor and Maheshkumar S Rajgor are the promoters of the company. The promoter and promoter group shareholding stood at 67.26 percent and 32.74 percent before the issue and their stakes will come down to 40.71 percent and 19.31 percent after the IPO.

Rajgor Castor Derivatives reported decent earnings growth in the past fiscal years, with its net profit rising sharply from Rs 0.52 crore in FY22 to Rs 5.54 crore in FY23, when revenue jumped to Rs 428.78 crore from Rs 39.67 crore.

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The net proceeds from the IPO will be used to fund working capital requirements and general corporate purposes. The book-running lead manager for the issue is Beeline Capital Advisors, while Link Intime India is the registrar and Spread X Securities is the market maker.

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