Rajputana Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Jul 2024 – 01 Aug 2024
- Listing date
- 06 Aug 2024
- Face value
- ₹10 per share
- Issue price
- ₹38 per share
- Lot size
- 3,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹23.88 Cr
- Market cap at offer price
- ₹84.42 Cr
- Promoter holding
- 92.15% → 66.08% pre-issue → post-issue
- ISIN
- INE0PCU01012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Holani Consultants Pvt.Ltd.
- Registered office
- F-269-B, Road No.13, Vishwakarma Industrial Area, Rajasthan
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 16,11,000 | — | — |
| Market maker | 3,60,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹38
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,14,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,28,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,12,000 |
| B-HNI (min) | 9 | 27,000 | ₹10,26,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.22 | 2.31 |
| P/E (×) | 11.80 | 16.45 |
| Price to book (×) | 1.79 | — |
| Market cap | — | ₹84.42 Cr |
Key performance indicators
- Return on net worth
- 15.74%
- ROCE
- 30.28%
- PAT margin
- 1.57%
- NAV per share
- ₹21.25
- Price to book
- 1.79
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Rajputana Industries
Rajputana Industries Limited is a manufacturer of non-ferrous metal products, primarily engaged in converting scrap metal into billets and finished products such as aluminum winding wires, brass billets, copper rods, and aluminum ingots. The company was incorporated as a Private Limited Company on June 13, 2011, and converted to a Public Limited Company on May 4, 2023. The company procures scrap metal from open markets and processes them into various metal products through its in-house manufacturing unit located at SP-3, SKS Industrial Area, Reengus Extension, Sikar, Rajasthan. The company generates revenue by selling these products to customers in transformer, panel, isolator, sanitary fitting, valve, and wire industries, with significant sales to related entities including its holding company Shera Energy Limited and promoter group companies.
Company Analysis
from RHPRajputana Industries Limited manufactures diverse non-ferrous metal products from copper, aluminum, brass and various alloys through recycling of scrap metal, operating in the metals recycling and non-ferrous metals manufacturing industries.
Rajputana Industries Limited is a manufacturer of non-ferrous metal products, primarily engaged in converting scrap metal into billets and finished products such as aluminum winding wires, brass billets, copper rods, and aluminum ingots. The company was incorporated as a Private Limited Company on June 13, 2011, and converted to a Public Limited Company on May 4, 2023. The company procures scrap metal from open markets and processes them into various metal products through its in-house manufacturing unit located at SP-3, SKS Industrial Area, Reengus Extension, Sikar, Rajasthan. The company generates revenue by selling these products to customers in transformer, panel, isolator, sanitary fitting, valve, and wire industries, with significant sales to related entities including its holding company Shera Energy Limited and promoter group companies.
Objects of the Issue
- Funding the working capital requirement of our Company ₹ 1,400.00 Lakhs p.26
- Purchase of Grid Solar Power Generating System ₹ 450.00 Lakhs p.26
- General corporate purposes p.26
- Funding the working capital requirement of our Company Rs. 1,400.00 Lakhs p.99
- Purchase of Grid Solar Power Generating System Rs. 450.00 Lakhs p.104
- General corporate purposes p.105
- Funding capex for cable plant establishment ₹5.88 crore p.141
- —
Issue Structure
- Total Issue
- Up to 62,85,000 Equity Shares of Face Value of Rs. 10/- each aggregating up to Rs. [●] lakhs
- Fresh Issue
- Up to 62,85,000 Equity Shares of Face Value of Rs. 10/- each aggregating up to Rs. [●] lakhs
- Offer for Sale
- NIL
- Price Band
- [●] per Equity Share (Floor Price) and [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares
- Face Value
- Rs. 10/- each
Business Model
The company operates on a manufacturing and sales model where it procures scrap metal primarily from spot market purchases, processes them through recycling in its manufacturing facility to produce metal billets and finished products, and sells these products both domestically and internationally. Revenue is derived from the sale of diverse product offerings including aluminum winding wires/strips, brass billets and ingots, copper winding wires/strips, aluminum ingots and rods, brass rods/mother tubes, copper rods/mother tubes, and alloyed rods and wires. A significant portion (51.33% in FY 2024) of revenue is generated from sales to related parties including the holding company and promoter group companies.
Business Segments
SWOT Analysis
- • Experienced promoter management with 26+ years in non-ferrous metals(p.181)
- • Long-standing customer relationships spanning over a decade(p.144)
- • ISO certified quality management and safety systems(p.142)
- • Vertically integrated manufacturing with complete end-to-end facility(p.144)
- • Established corporate governance framework compliant with SEBI regulations(p.188)
- • Independent Board structure with three Independent Directors(p.188)
- • Experienced management team with specialized technical expertise(p.193)
- • Revenue growth trajectory with increasing profitability(p.217)
- • Improved operational cash flow generation(p.220)
- • Diversified product portfolio across multiple metal types and applications(p.276)
- • Established relationships with major customers across diverse industries(p.278)
- • Strong revenue growth trajectory(p.286)
- • Improving profitability metrics(p.288)
- • Quality certifications and operational standards(p.311)
- • Improved working capital management(p.287)
- • High concentration of revenue from related parties(p.34)
- • Heavy dependence on limited number of suppliers(p.35)
- • Negative working capital in prior years(p.37)
- • Underutilized manufacturing capacity(p.39)
- • Promoter litigation regarding criminal allegation(p.39)
- • Trademark licensed from promoter, not owned(p.41)
- • Registered office held on lease from related party(p.54)
- • Regulatory non-compliances and filing delays(p.43)
- • Heavy customer concentration with top 5 customers contributing 63.67% of revenue(p.164)
- • High raw material supplier concentration with top 5 suppliers representing 65.66% of procurement(p.164)
- • Unproven cable manufacturing venture with no prior orders placed(p.141)
- • Limited export presence with zero exports in FY 2023-24(p.143)
- • High financial leverage with significant debt burden(p.260)
- • Dependence on a limited customer base(p.208)
- • Limited shareholder diversity with promoters holding 88.90% pre-issue equity(p.197)
- • Significant related-party transactions and cross-holding arrangements(p.185)
- • Low profitability margins despite revenue growth(p.217)
- • Recent rapid changes in Key Managerial Personnel(p.195)
- • High dependence on limited supplier base(p.286)
- • Significant customer concentration risk(p.286)
- • Substantial debt burden and financing costs(p.287)
- • Modest net profit margins(p.279)
- • Accumulated business losses reducing tax position(p.268)
- • Litigation involving directors and promoters(p.302)
- • Entry into cable manufacturing for construction and submersible motor segments(p.163)
- • Expanding customer base by extending distribution reach into additional regions(p.145)
- • Rapid growth in renewable energy and electric vehicle sectors using copper/aluminum(p.147)
- • Growing demand from construction, infrastructure and automotive industries(p.134)
- • Expansion into domestic market with growing manufacturing capability(p.249)
- • Capital expansion initiatives underway with work-in-progress(p.215)
- • Diversification through group company relationships(p.207)
- • Supply chain financing programs to optimize working capital(p.246)
- • Growing domestic demand for non-ferrous metal products(p.287)
- • Expansion into renewable energy applications(p.278)
- • Market expansion through product diversification(p.277)
- • Geographic market penetration potential(p.277)
- • Enhanced EBITDA margins trajectory(p.279)
- • Raw material price volatility(p.41)
- • Intense competition in fragmented market(p.42)
- • Regulatory and environmental compliance risks(p.43)
- • Transportation disruptions and strikes(p.42)
- • COVID-19 and pandemic-related supply chain risks(p.54)
- • Customer purchase order dependency without long-term contracts(p.42)
- • Limited supply chain flexibility without long-term agreements(p.41)
- • Highly fragmented and unorganized industry with intense price-based competition(p.164)
- • Copper and zinc prices subject to LME volatility and currency fluctuations(p.134)
- • Global economic slowdown impacting demand from major consuming countries(p.123)
- • Dependence on imported raw materials subject to geopolitical trade tensions(p.124)
- • Rising interest rates and finance costs impacting profitability(p.250)
- • Volatile raw material prices and input cost pressures(p.249)
- • Regulatory compliance risks and contingent liabilities(p.254)
- • Exposure to foreign exchange fluctuations in international transactions(p.257)
- • Deferred tax liability position creating tax risk exposure(p.244)
- • Volatility and exposure to copper and aluminium price fluctuations(p.277)
- • Intense competitive pressure in the market(p.278)
- • Macroeconomic sensitivity and economic slowdown risk(p.278)
- • Supply chain disruption risks(p.278)
- • Regulatory and taxation risks(p.293)
- • Increasing employee benefit expenses impacting margins(p.287)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Shera Energy Limited | Promoter | 71.13% | — |
| Shivani Sheikh | Promoter | 17.77% | — |
| Sheikh Naseem | Promoter | — | — |
| Isha Infrapower Private Limited | Promoter | — | — |
| Shera Energy Limited | Promoter | 71.13% | — |
| Shivani Sheikh | Promoter | 17.77% | — |
| Sheikh Naseem | Promoter | — | — |
| Isha Infrapower Private Limited | Promoter | — | — |
| Shree Khatu Shyamji Metal Industries Private Limited | Promoter Group | 3.25% | — |
| Shivani Sheikh | Promoter | — | — |
| Sheikh Naseem | Promoter | — | — |
| Shivani Sheikh | Promoter | 17.77% | — |
| Sheikh Naseem | Promoter | — | — |
| Shera Energy Limited | Promoter | 69.47% | — |
| Isha Infrapower Private Limited | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.