Rajputana Stainless IPO: Rajputana Stainless is going to launch its IPO. The company has filed draft paper for this with market regulator SEBI. This Gujarat based company manufactures long and flat stainless steel products. The company intends to raise funds for new manufacturing facility and working capital requirements.
1.9 crore fresh equity shares will be issued under the IPO of Rajputana Stainless. Apart from this, 35 lakh shares will be sold through Offer for Sale (OFS) by promoter Shankarlal Deepchand Mehta. Promoters including Shankarlal Deepchand Mehta hold 78.21 percent stake in Rajputana Stainless, while 21.79 percent shares are held by public shareholders.
Where will Rajputana Stainless use the funds?
The company is planning to set up a manufacturing facility for stainless steel seamless pipes to expand its production capacity and product portfolio. For this, it will utilize a total of ₹18.3 crore from the net fresh issue proceeds. Additionally, an investment of ₹37.68 crore will be made to meet the working capital requirements of the new facility.
Additionally, Rs 76.5 crore will be used to repay the loan. It had total outstanding borrowings of Rs 135.8 crore at the end of October 2024. The remaining IPO funds will be used for general corporate purposes.
Business of Rajputana Stainless
Rajputana Stainless manufactures long and flat stainless steel products, including billets, forging ingots, rolled black bars, rolled bright bars, flats and patties and other supporting products. Let us tell you that stainless steel contains chromium, which forms a protective layer on iron. Due to this layer, stainless steel is less prone to rust. Nirbhay Capital Services has been appointed merchant banker for the public issue.
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