The Gujarat-based company has fixed the price band between ₹116 to ₹122 per equity share. Investors can bid for one lot of 110 shares and then in multiples of 110.
In the unlisted market, shares of Rajputana Stainless are commanding a premium of ₹2, indicating a likely listing gain of nearly 2% over the issue price.However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
At the upper end of the price band, the company intends to raise ₹254.98 crore, which includes a fresh issue of shares worth ₹179 crore, along with an Offer for Sale (OFS) component of shares worth ₹76 crore by promoter Shankarlal Deepchand Mehta.
Promoters including Shankarlal Deepchand Mehta hold 78.21% stake in Rajputana Stainless, while 21.79% shares are owned by public shareholders.Rajputana Stainless will have a post-listing market capitalisation of ₹1,019.53 crore at the upper end of the price band.
50% of the IPO has been reserved for institutional investors, while 15% of the issue is reserved for non-institutional investors. 35% of the offer is kept aside for retail investors.
The company will spend some funds out of net fresh issue proceeds for setting up of manufacturing facility for stainless steel seamless pipes to expand its product portfolio. Further, an amount will be utilised for repaying debt, and the remaining funds for general corporate purposes.
Rajputana Stainless Limited manufactures a range of stainless-steel products including billets, forging ingots, rolled black bars, rolled bright bars, flats, patti, and other ancillary products.
Nirbhay Capital Services is the book-running lead manager, and Kfin Technologies is the registrar of the offer.
The allotment for the Rajputana Stainless IPO is expected to be finalised on March 12. Rajputana Stainless IPO will list on BSE, NSE with a tentative listing date fixed as March 16.
