Rajputana Stainless IPO

Company Overview

Company Inception & Evolution

Rajputana Stainless Limited was originally incorporated as:

Rajputana Steel Castings Private Limited on April 2, 1991.

Key corporate milestones:

The company transitioned from steel castings to stainless steel manufacturing, indicating strategic diversification and modernization.

Business Activities

Rajputana Stainless operates in the stainless steel long products segment, catering to:

• Infrastructure

• Construction

• Engineering industries

• Fabrication

• Automotive components

• Industrial machinery

Product Portfolio

The company operates integrated stainless steel production facilities.

Indian Stainless Steel Industry Overview

India is among the top global producers of stainless steel.

Market Size & Growth

Industry Structure

The stainless steel industry is divided into:

1. Flat Products

2. Long Products

Rajputana Stainless operates in the long products segment, which includes:

• Bars

• Rods

• Angles

• Channels

Industry Value Chain

Raw Material (Nickel, Scrap, Ferro Alloys)
      ↓
Melting & Casting
      ↓
Rolling Mills
      ↓
Finishing & Fabrication
      ↓
End Users (Infrastructure, Automotive, Industrial)

Rajputana Stainless operates in the rolling & finishing stage.

Growth Drivers

1. Infrastructure Push

• National Infrastructure Pipeline

• Urban development projects

2. Railway Modernization

• Stainless steel coaches

• Freight corridor expansion

3. Make in India Initiative

4. Export Demand

Regulatory Environment

The company operates under:

• SEBI ICDR Regulations

• Companies Act 2013

• Environmental Laws

• Factory Regulations

• Pollution Control Norms

Future Outlook

India’s per capita stainless steel consumption remains lower than global averages, indicating long-term growth potential.

Core Business Model

Rajputana Stainless manufactures stainless steel long products and supplies to:

• Industrial clients

• OEM manufacturers

• Infrastructure companies

• Traders & distributors

Revenue Model

Revenue streams include:

Competitive Positioning

Strengths

• Established brand presence

• Gujarat-based manufacturing advantage

• Promoter-led operations

• Long-standing industry experience

Competitive Factors

Rajputana Stainless operates under a multi-layered regulatory framework.

Primary Regulations

Environmental Compliance

• Pollution control clearance

• Waste management compliance

• Industrial effluent management

• Hazardous material handling

SEBI & IPO Compliance

• 100% Book Built Process

• QIB / NII / Retail allocation

• ASBA mechanism mandatory

• Monitoring Agency appointed

Investing in Rajputana Stainless IPO involves the following risks:

A. Business Risks

B. Financial Risks

C. Operational Risks

• Power supply disruptions

• Machinery breakdown

• Skilled labor dependency

• Supply chain bottlenecks

D. IPO Specific Risks

• First-time listing

• No prior trading history

• Market volatility

Promoters

Promoter Experience

• 30+ years in steel industry

• Operational management expertise

• Industry relationships

The promoter selling shareholder is offering up to 62,50,000 shares in OFS.

Weighted average acquisition cost: ₹0.91 per share

The company defines group companies under SEBI ICDR Regulations.

These include:

• Entities with related party transactions

• Material companies identified by board

Group companies typically operate in:

• Steel trading

• Industrial support services

• Related manufacturing

Board of Directors

Key Managerial Personnel

The company has constituted mandatory committees:

Governance aligns with:

• Companies Act 2013

• SEBI Listing Regulations

The legal disclosures of Rajputana Stainless Limited are detailed under:

• Outstanding Litigation and Material Developments

• Materiality Policy

• SEBI ICDR Regulations compliance

Categories of Legal Matters Disclosed

The Board adopted a Materiality Policy (December 17, 2025) to determine:

• Material outstanding litigations

• Material creditors

This enhances investor transparency.

Key Observations

• No SEBI debarment reported.

• No willful defaulter declaration.

• No fugitive economic offender declaration.

• Disclosures comply with SEBI ICDR requirements.

Litigations, if any, primarily relate to routine operational matters.

Rajputana Stainless operates in the stainless steel manufacturing industry, requiring multiple operational and statutory approvals.

Key Licenses & Approvals

The company confirms possession of all material approvals necessary to conduct its business.

A. Revenue & Profitability (₹ Crore)

Revenue Trend Analysis

• FY24 saw a slight revenue decline (~3.7%) due to pricing pressure.

• FY25 showed recovery and stabilization.

• Revenue remains close to ₹950 Cr range, showing operational stability.

EBITDA Growth

EBITDA increased significantly:

• FY23 → FY25 growth: 68%

• Margins expanded from 4.61% to 7.87%

This indicates:

• Better cost control

• Improved operational efficiency

• Higher value realization

Profit After Tax Growth

PAT grew from ₹24.04 Cr to ₹39.85 Cr:

• ~65% increase over 2 years

• Improving bottom-line margins

• Operating leverage benefit

Key Balance Sheet Insights

Net Worth Growth

• FY23: ₹81 Cr

• FY25: ₹152 Cr

• Growth: ~87%

Driven by retained earnings.

Asset Expansion

Total assets grew ~41% in 2 years.

Indicates:

• Capacity expansion

• Higher working capital

• Business scaling

Borrowing Trend

• Stable in FY23 & FY24

• Increased in FY25 to ₹99.75 Cr

Likely due to:

• Working capital requirements

• Expansion financing

While full cash flow numbers were not publicly detailed, balance sheet and borrowings indicate:

Operating Activities

• Positive operating profit trend

• Improved EBITDA conversion

• Higher inventory & receivable funding needs

Investing Activities

• Asset growth indicates capital expenditure

Financing Activities

• Borrowing increase in FY25

• Equity accumulation via retained profits

Manufacturing businesses are working-capital intensive.

Profitability Ratios

Interpretation

• Margins are improving steadily.

• ROE slightly declining due to rising equity base.

• Strong profit compounding.

Leverage Ratios

Interpretation

• Leverage improving structurally.

• EBITDA growth strengthening debt servicing capacity.

Key Strategic Themes

Margin Expansion

• Cost efficiency improvements

• Better procurement strategies

Capacity Utilization

• Optimizing plant productivity

Market Expansion

• Broader industrial client base

• Strengthening distribution network

Debt Optimization

• IPO proceeds may reduce leverage

The IPO consists of:

• Fresh Issue

• Offer for Sale

Fresh Issue Proceeds Likely Used For:

OFS proceeds go to promoter shareholder.

IPO price band to be determined via Book Building Process.

Valuation Parameters to Watch

Estimated Earnings Per Share (Indicative)

Using FY25 PAT:
If post-issue equity assumed ~₹X Cr (subject to final share capital), P/E multiple will depend on final price band.

Investors will compare with:

• Stainless steel manufacturers

• Small-cap metal companies

• Engineering & industrial peers

Rajputana Stainless Limited is coming with a 100% Book Built Issue, comprising:

• Fresh Issue – Up to 1,46,50,000 equity shares

• Offer for Sale (OFS) – Up to 62,50,000 equity shares

• Total Issue Size – Up to 2,09,00,000 equity shares

• Face Value – ₹10 per share

A. Pre-Issue Capital Structure (Indicative)

Before the IPO, the company is closely held by promoters and promoter group entities.

B. Post-Issue Capital Structure (Indicative)

The OFS does not dilute total equity capital; only the fresh issue increases paid-up share capital.

Key Capital Observations

• Promoter stake will dilute post-IPO.

• Equity base will expand, improving debt-equity ratio.

• Net worth increases due to fresh issue proceeds.

As per SEBI ICDR norms, allocation is structured across categories:

IPO Allocation Structure

Post-Listing Shareholding Pattern (Indicative)

The exact percentage will depend on:

• Final issue size

• Anchor allocation

• Subscription levels

Rajputana Stainless Limited has disclosed its dividend policy in the RHP.

Key Dividend Considerations:

• Dividend declaration depends on:

  • Profitability

  • Working capital requirements

  • Capital expenditure plans

  • Debt obligations

  • Regulatory restrictions

Current Position:

• Historically retained earnings for growth.

• Net worth increased significantly from FY23–FY25.

• No aggressive dividend payout history.

Likely Approach Post-IPO:

• Focus on reinvestment.

• Strengthen balance sheet.

• Moderate dividend payout once stable.

Manufacturing companies typically prioritize expansion over dividend in growth phase.

Important IPO-related agreements include:

These agreements ensure regulatory compliance and investor protection.

IPO Snapshot

Investor Category Reservation

Post listing, shareholders will have:

A. Voting Rights

• 1 vote per equity share

• Participate in AGM/EGM

B. Dividend Rights

• Entitled to declared dividends

• Proportionate to shareholding

C. Bonus & Rights Issue Entitlement

• Eligible for future corporate actions

D. Transferability

• Freely tradable on stock exchanges

Rajputana Stainless Limited complies with:

• SEBI ICDR Regulations, 2018

• Companies Act, 2013

• SEBI Listing Obligations

• FEMA Regulations

• Insider Trading Regulations

• Corporate Governance Norms

Monitoring Agency

• CARE Ratings Limited appointed as Monitoring Agency.

• Ensures IPO funds used as disclosed.

Restrictions on Foreign Ownership

• Subject to FEMA and FDI norms.

• FPIs eligible under regulations.