PS Raj Steels makes tepid debut; shares list at 3.5% premium over IPO price

Shares of small and medium enterprise (SME) PS Raj Steels Ltd made a muted trading debut on Thursday, February 19, with the stock listing at a 3.57% premium on the NSE Emerge platform.

The PS Raj Steels stock opened the session at ₹145 compared to its initial public offering (IPO) of ₹140 apiece. Within minutes of the opening of the session, the share price rose another 2% to hit the day’s high of ₹147.90.

Within minutes of trade, as many as 5.76 lakh shares changed hands on the bourse. The total trading value stood at ₹8.35 crore, while the company’s market capitalisation reached ₹109.31 crore.

As the minimum bid quantity to apply for the PS Raj Steels IPO was 1,000 shares, successful bidders who were allotted shares in the primary issue were sitting on nominal listing gains of ₹5,000 per lot (₹5 x 1,000) as soon as the stock started trading in the secondary market.

The PS Raj Steels IPO comprised only a fresh issuance of 20.2 lakh shares, with no offer-for-sale component. The fixed-price issue offered shares at ₹140 apiece in a lot size of 1,000 shares.

Ahead of the launch of the IPO, PS Raj Steels had also raised ₹7.97 crore via its anchor investor round on February 12. The company allocated 5.69 lakh equity shares to five anchor investors at a price of ₹140 per share.

In its red herring prospectus, PS Raj Steels had said that it intended to utilise the funds generated from the issue to meet the company’s working capital requirements.

Incorporated in 2004, PS Raj Steels Ltd is a key manufacturer and supplier of stainless steel pipes and tubes in India. It is also engaged in trading stainless-steel products such as coils and strips, sheets and plates, and bars.

The company caters to customers across a diverse range of sectors like railways, furniture, household applications, gate railings, door frames, rice plants, sugar mills, food processing and heat exchangers.

PS Raj Steels boasts of a robust infrastructure with a state-of-the-art manufacturing unit located in Hisar, Haryana. The facility spans an area of 3 acres and has an impressive installation capacity of 13,460 tonnes per annum.

For the first six months of financial year 2024-25 ended September 2024, PS Raj Steels’ revenue from operations stood at ₹139.11 crore, while net profit during the period was ₹3.87 crore.

For the full financial year 2023-24, the company reported a revenue of ₹297.74 crore compared to ₹225.44 in the previous financial year 2022-23. Net profit for FY24 was ₹6.36 crore compared to ₹3.65 crore in FY23.