Rajputana Industries lists at 90% premium to IPO price on NSE Emerge platform

Non-ferrous metal products maker Rajputana Industries Ltd. made a bumper debut on the NSE SME platform, listing its shares at a premium of 90% over the issue price.

According to exchange data, Rajputana Industries shares listed at ₹72.20 per share on the NSE SME platform, reflecting gains of 90% over the IPO price of ₹38 per share.

The stock rallied further to hit a high of ₹75.8 apiece in early trade, up by 5% from the listing price and 99% from the issue price.

More than 8.46 lakh shares of the company changed hands on the NSE SME platform. The traded value was ₹ 6.25 crore, and the company's market valuation stood at ₹ 168.39 crore.

The Jaipur-based company launched its public offer on July 30, 2024, to raise ₹23.88 crore from investors. The IPO comprised a fresh issue of 62.85 lakh shares and no Offer for Sale component.

The IPO price band was fixed at ₹36 to ₹38 per share. The minimum lot size was 3,000 shares, and the minimum investment required was ₹1,14,000 for retail investors.

At the close of bidding on August 1, 2024, Rajputana Industries IPO was booked a little over 376 times. Applications for 162.38 crore shares worth ₹6,170.56 crore were received against 43.14 lakh shares on offer for subscription.

The retail Investors' portion was booked 524 times, with bids for 105.44 crore shares against 20.10 lakh on offer. The Qualified Institutional Buyers’ quota was booked 177 times, while the Non-Institutional Buyers portion was subscribed 417 times. The Employees' quota was booked at just 32%.

The company raised ₹6.12 crore from anchor investors. It allotted 1,611,000 shares to two fund schemes, Meru Investment Fund and Holani Venture Capital Fund, at a price of ₹38 per share.

Rajputana Industries manufactures a diverse range of non-ferrous metal products, primarily from Aluminium, Copper, Brass, and various alloys recycled from scrap metal.

The company procures scrap metal from open markets and converts it into billets made of metals like aluminium, copper, brass, etc. It has an in-house recycling manufacturing unit situated at Sikar, Rajasthan.

These billets are supplied to different manufacturing companies for the production of products like Copper rods, Aluminium rods, Copper mother tube, brass wires, super enameled copper conductor and many more products. The products are used in Electrical and Electronics Industry, Automotive Industry, Construction and Architecture Industry and other sectors.

The company has proposed to utilise ₹14 crore of IPO proceeds for funding working capital requirements. A portion of the fund will also be utilised towards the purchase of a 1,000 KW Grid Solar Power Generating System.

It seeks to overcome the rising cost of energy bills by switching to commercial solar power, as its tariff rates are significantly cost-effective compared to traditional electricity.