Rajputana Stainless IPO: Stainless Steel Maker Issue Worth Rs 255 Crore; Should You Apply?

Rajputana Stainless will tap into the primary market with an aim to raise up to Rs. 254.98 crore through a combination of fresh issue of shares and offer-for-sale (OFS). The stainless steel product maker plans to issue 14.65 million fresh equity shares along with 6.25 million existing shares on offer. For the issue, the price band has been fixed at Rs 116-122 per share. The lot size to apply to the issue is 100 shares. For retail investors, the minimum investment amount is Rs. 13,420 at the upper end of the price band. Rajputana Stainless is a Gujarat-based company which manufactures long and flat stainless-steel products, which include billets, forging ingots, rolled black and bright bars, flat and patti, and other ancillary products. The company supplies raw materials to various industries, such as aerospace, oil and gas, defence, aviation, and others. The company also exports its products to the UAE, the USA, Turkey, Kuwait, and Poland. Rajputana Stainless IPO Details, Date Rajputana Stainless’ initial public offering (IPO) will open for subscription on March 9 and will close on March 11. The allotment of shares is expected to be finalised on March 12, and the tentative listing date on the NSE and BSE is expected on March 16. Before the issue, the market capitalisation of the company stood at Rs. 1,019.53 crore. Shankarlal Deepchand Mehta is the promoter who is the selling shareholder in the issue. Mehta is offering the 6.25 million shares in OFS, and is set to make up to Rs. 75.68 crore through the sale. Rajputana Stainless Financials Rajputana Stainless earned a total operating revenue of Rs. 501.53 crore during the first six months of the financial year 2025-26, and made a profit after tax of Rs. 24.41 crore for the same period. In FY25, the company made a net profit of Rs. 39.85 crore, higher than Rs. 31.63 crore in the previous fiscal. In FY25, the company earned an operating revenue of Rs. 932.16 crore, up from Rs. 909.81 crore in FY24. Rajputana Stainless IPO: Should You Apply Before deciding whether to apply for the IPO or not, here is a look at the strengths and risks posed by the company: Rajputana Stainless: Key Risks The company’s manufacturing plant is based in Gujarat, which, despite providing strategic location benefits, is a risk due to the lack of diversification. The company, promoters and directors have ongoing tax-related and civil litigations culminating in Rs 128.62 crore, which is 72.81 per cent of the net worth of the company. A majority of sales in the domestic market is derived from Maharashtra, Gujarat and Uttar Pradesh, and any adverse developments in these markets could impact the business of the company, according to the red herring prospectus (RHP) of the company. Rajputana Stainless: Key Strengths The company has an established and integrated manufacturing plant and offers a diverse product portfolio. The company also has an established customer base and relationships across many sectors. Over the past couple of years, the company has also shown steady growth in their financials. Rajputana Stainless: Competitors Companies like Jindal Steel and Tata Steel are major players in the sector and are competitors of the company. Though there are no direct peers, Panchmahal Steel, Electrotherm, Mukand and Manglam Worldwide are comparable peers of the company in India. Rajputana Stainless IPO: Objective Rajputana Stainless plans to use the net proceeds from the fresh issue to expand its existing manufacturing facility at Panchmahal, Gujarat. The company aims to do this through forward integration and diversification into stainless steel seamless pipes, for which it has earmarked Rs. 18.57 crore. Moreover, the company also plans to use Rs. 98 crore for debt repayment, and the remainder of the funds for general corporate purposes.