Rajputana Stainless IPO to open next week; GMP, price band, review, other key details

Rajputana Stainless IPO: The initial public offering (IPO) of stainless-steel products manufacturer Rajputana Stainless Ltd is set to hit Dalal Street next week with an aim to raise nearly ₹255 crore from the primary market. Rajputana Stainless IPO will open for public subscription on March 9, Monday, and close on March 11, Wednesday. The IPO allotment date is likely March 12, Thursday, and the IPO listing date is March 16, Monday. The company aims to raise ₹254.98 crore from the book-building issue which is a combination of fresh issue of 1.47 crore equity shares worth ₹178.73 crore, and an offer for sale (OFS) component of 62.50 lakh shares aggregating to ₹76.25 crore. Rajputana Stainless IPO price band is set at ₹116 to ₹122 per share, and the IPO lot size for an application is 110 shares. The minimum investment amount required by a retail investor is ₹13,420. Nirbhay Capital Services Pvt. Ltd. is the book running lead manager and Kfin Technologies Ltd. is the Rajputana Stainless IPO registrar. Ahead of the Rajputana Stainless IPO opening, here a look at what the trends in the grey market premium (GMP) unlisted market suggest about the issue. Rajputana Stainless IPO GMP Today Rajputana Stainless shares are witnessing a muted trend in the grey market. According to websites tracking the grey market, Rajputana Stainless IPO GMP today is ₹0 per share. This means that Rajputana Stainless shares are not commanding any premium or discount to its issue price in the grey market. Rajputana Stainless IPO GMP today signals that in the grey market, the stock is trading at ₹122 apiece, which is equal to its IPO price of ₹122 per share. Rajputana Stainless IPO Review Rajputana Stainless markets its products under the ‘RSL’ brand, producing more than 80 grades of stainless steel. The company operates an integrated production setup, ensuring consistently high-capacity utilization. Both its melting and rolling operations typically run at nearly full capacity, maintaining utilization rates close to 100%. The company’s planned forward integration into stainless‑steel seamless pipes is expected to enhance product diversification and strengthen long‑term growth visibility, SBI Securities noted. Additionally, Rajputana Stainless intends to deploy ₹98 crore from IPO proceeds towards repayment of borrowings, which will materially reduce its Total Debt/Equity from 0.8x to 0.2x, thereby improving balance sheet strength and generate savings in finance costs. “At the upper price band of ₹122, Rajputana Stainless IPO is valued at a P/E of 25.6x and EV/EBITDA of 12.6x on a post‑issue basis, and given Rajputana Stainless’ superior profitability metrics relative to peers, the valuation appears relatively attractive. We recommend investors to subscribe to the issue at the cut-off price for a long-term investment horizon,” said the brokerage house. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.