Rajputana Biodiesel hit 5% upper circuit after making a stellar debut at 90% premium on NSE SME

Shares of small and medium enterprise (SME) Rajputana Biodiesel Ltd. made a stellar trading debut on Tuesday, December 2. The stock listed at a 90% premium on the NSE Emerge platform.

Rajputana Biodiesel shares opened the session at ₹247 apiece on the NSE SME platform, up 90% compared to the initial public offering (IPO) price of ₹130 per share. Within minutes after the trade opened, the share price rose further to hit the 5% upper circuit and traded at ₹259.35, almost double the issue price.

As the minimum bid quantity to apply for the Rajputana Biodiesel IPO was 1,000 shares, successful bidders who were allotted shares in the primary issue were sitting on a profit of at least ₹1.17 lakh (₹117 x 1,000) as soon as the stock started trading in secondary markets.

As many as 3.76 lakh company shares changed hands on the NSE after the stock began to trade. Rajputana Biodiesel's total market capitalisation stood at ₹182.41 crore.

Rajputana Biodiesel IPO Details

The ₹24.70-crore Rajputana Biodiesel IPO, which was open for subscription from November 26 to November 28, received a huge response from investors. The issue was subscribed almost 719 times during the three-day bidding period.

The non-institutional investors’ (NIIs) category was the most subscribed at 1,346 times, while the portion reserved for retail investors was overbid by almost 747 times. The qualified institutional buyers’ (QIB) segment was subscribed by over 177 times.

The Rajputana Biodiesel IPO was a 100% book-built issue consisting entirely of fresh issuance of 19 lakh shares. The price band for the issue was fixed at ₹123-130 per share, with the lot size for an application being 1,000 shares.

The company said that it proposed to utilise the proceeds from the IPO to provide a loan to its subsidiary, Nirvaanraj Energy Pvt. Ltd., for capital expenditure requirements related to the expansion of the existing manufacturing facility. A portion of the funds would also be used to fund the company's working capital requirements and for general corporate purposes.

Ahead of the IPO launch, Rajputana Biodiesel also raised ₹6.70 crore from anchor investors. The company's board of directors, at its meeting held on November 25, 2024, finalised the allocation of 5.15 lakh equity shares to anchor investors at an average price of ₹130 per share. The list of investors included HDFC Bank, Finavenue Capital Trust, Mint Focused Growth Fund, and Nine Alps Trust.

Rajputana Biodiesel was incorporated in 2016 as a private limited company under the Companies Act,2013. Subsequently, the company was converted into a public limited company. It produces and supplies biofuels and their by-products, namely glycerine and fatty acids.

The company’s revenue increased by 128% to ₹53.67 crore in the financial year 2023-24, compared with ₹23.5 crore a year ago. Profit after tax (PAT) rose by 168% to ₹4.5 crore during FY24, compared with ₹1.69 crore in FY23.