IPO Details
Bidding Dates
30 Jul 24 - 01 Aug 24
Price Range ₹
36 - 38
Total Equity
₹ 26.16Cr
Lot Size
3000
Exchange Status
NSE
IPO Doc
Subscription Rate
Non-Institutional Investor
0.00×
Qualified Institutional Buyers
0.00×
Employees
0.00×
Retail Investors
0.00×
Total subscription Rate
0.00×
IPO Timeline
Offer start
30 Jul 2024
Offer end
01 Aug 2024
Allotment
02 Aug 2024
Refund initiation
05 Aug 2024
Demat transfer
05 Aug 2024
Listing
06 Aug 2024
Offer start
30 Jul 2024
Offer end
01 Aug 2024
Allotment
02 Aug 2024
Refund initiation
05 Aug 2024
Demat transfer
05 Aug 2024
Listing
06 Aug 2024
About Company
Rajputana Industries Limited, established in 2011, produces a diverse range of non-ferrous metal products, including copper, aluminum, brass, and various alloys, sourced from recycled scrap metal. The company processes scrap metal into billets of aluminum, copper, brass, and other metals at its manufacturing facility in Sikar, Rajasthan. These billets are either sold to other manufacturers or used to create products such as copper rods, aluminum rods, copper mother tubes, brass wires, and super-enameled copper conductors. The company produces these products in various shapes and sizes according to customer requirements and market demand. To broaden its product offerings, Rajputana Industries is venturing into cable production. These cables will serve the construction industry, particularly for residential projects and underwater applications. The new cable plant will be integrated into the existing production facility, utilizing available space. As of July 10, 2024, the company employs 98 full-time staff across several departments, including accounting and finance, compliance, maintenance, marketing and logistics, production and operations, quality, and other executive roles.
Year Founded
13-06-2011
Promotor Details
Shivani Sheikh
Promoter Holdings Details
| Particular | Pre-IPO | Post-IPO |
|---|---|---|
| Percentage | 95.76 | 66.08 |
| Share Capital | 14680000 | 14680000 |
Offer to Public
68,85,000.00 Cr
Highlights
- The company holds ISO certifications for quality management (ISO 9001:2015), occupational health and safety (ISO 45001:2018), and environmental management (ISO 14001:2015), demonstrating its commitment to high standards in these critical areas.
- Rajputana Industries has recently expanded its product line to include special grade brass rods for defense applications, showcasing its ability to diversify and innovate within the metal products industry.
- The company has shown a steady increase in revenue, growing from Rs 244.35 crore in FY22 to Rs 326.50 crore in FY24, indicating strong business performance and market demand.
- The profit after tax (PAT) has consistently increased over the past three years, from Rs 2.64 crore in FY22 to Rs 5.13 crore in FY24, reflecting improved financial performance and profitability.
- The planned addition of a cable production line, utilizing excess space at the existing facility, illustrates the company’s strategic approach to expanding its product offerings and capturing new market opportunities.
Challenges
- Rajputana Industries relies significantly on its promoter group companies—Shera Metal Private Limited, Shree Khatu Shyamji Metal Industries, and holding/promoting company Shera Energy Limited—for a large portion of its revenue. These entities contributed 51.33%, 90.60%, and 93.66% of total revenue for the financial years ending March 31, 2024, 2023, and 2022, respectively. This heavy dependence could pose a risk if these companies face financial or operational issues.
- The company's top 10 suppliers represented a significant portion of its total purchases, accounting for 79.49%, 87.42%, and 92.75% of total purchases in FY24, FY23, and FY22, respectively. Disruptions in supply or quality issues with these suppliers could negatively impact the company's operations.
- Promoters Sheikh Naseem and Shivani Sheikh are implicated in a criminal case related to abetment to suicide. Although the police have submitted a negative final report and the complainant has agreed to abide by the findings, a final court ruling is still pending. An unfavorable court decision could lead to a reopening of the investigation, potentially damaging the company’s business and reputation.
- As of June 10, 2024, Rajputana Industries has secured loans amounting to Rs 35.68 crore from banks and financial institutions, along with unsecured loans of Rs 7.05 crore from directors, promoter group companies, and other entities. Any difficulty in servicing or repaying these loans could adversely affect the company’s financial stability.
- The substantial portion of Rajputana Industries' revenue that comes from its promoter group companies presents a risk. If these companies encounter financial difficulties or cease to contribute at the same level, it could significantly impact Rajputana Industries' revenue and overall business performance.
Financials
| Years | Total Assets | Share Capital | Profit After Tax | Consolidated Net Profit | Adjusted EPS |
|---|---|---|---|---|---|
| 2022 | 10,236.66 | 1,413.00 | 512.64 | 512.64 | 3.344 |
| 2023 | 11,781.27 | 1,533.00 | 309.67 | 309.67 | 2.02 |
| 2021 | 8,902.79 | 1,413.00 | 309.67 | 309.67 | 2.02 |
| 2024 | 14,974.81 | 1,533.00 | 309.67 | 309.67 | 2.02 |
