Rajputana Stainless Ltd. IPO

Rajputana Stainless

• Rajputana Stainless is coming out with a 100% book building; initial public offering (IPO) of 2,09,00,000 shares of face value Rs 10 each in a price band Rs 116-122 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on March 9, 2026 and will close on March 11, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 11.60 times of its face value on the lower side and 12.20 times on the higher side.
• Book running lead manager to the issue is Nirbhay Capital Services.
• Compliance Officer for the issue is Richa Sanjeev Prashar.

Profile of the company

The company is engaged in the business of manufacturing of long and flat stainless-steel (SS) products comprising of billets, forging ingots, rolled black bar, rolled bright bar, flat & patti and other ancillary products under the brand name of ‘RSL’. It offers its products in more than 80 diverse grades of stainless steel reflecting its ability to meet varied technical and application-specific requirements. Its versatile production capabilities enable it to cater to a wide range of industries and allow it to attend to its customers’ specifications. This flexibility distinguishes it from its competitors and enhances its ability to serve a diverse client base. 

The company operates exclusively on Business-to-Business (B2B), catering to a customer base that primarily comprises manufacturers and traders. Its focus on the B2B segment enables it to deliver stainless-steel solutions that meet the requirements of industrial clients across various applications. Its products are used across a diverse range of industries, including bar processing, seamless pipes, forging, wire manufacturing, engineering, casting, fasteners, utensils manufacturing, pump and shaft and auto industry. This broad industrial reach reflects the adaptability and performance of its stainless-steel solutions in both standard and specialized end uses.

A majority of its products are primarily sold in the domestic market through direct sales and a traders’ network. In addition to catering to the domestic market, the company currently exports its products to nine countries, including Turkey, UAE, Poland, Portugal, USA, South Africa, South Korea, Czech Republic, and Kuwait.

Proceed is being used for:

• Funding capital expenditure requirements for expansion of the existing manufacturing facility at Panchmahal district, Gujarat through forward integration and diversification of product portfolio i.e., Stainless Steel Seamless Pipes
• Full or part repayment and/or prepayment of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

India is the second largest consumer and the third largest producer of stainless steel globally, with estimated installed capacity 6.6-6.8 million tons, the country has the capability to manufacture a wide range of steel grades and products, including stainless-steel and special steel for diversified application. Talking about India’s position in the global stainless-steel market, India with average 7% share in global SS steel output (during 2016-20), remained the second largest stainless-steel producer behind China till 2020. Due to this wide end consumer base, demand for long and flat steel products is closely linked to the overall all economic growth industrial as well as consumer demand scenario.

In terms of total finished steel (alloy/stainless and non-alloy), India’s production and consumption have grown steadily. In FY 2025, total steel production reached 146.56 million tonnes, up 5.3% from 139.15 million tonnes in FY 2024. Total steel consumption in FY 2025 rose to 152.00 million tonnes, marking an increase of 11.5% over 136.29 million tonnes in FY 2024. This indicates a strong rise in domestic demand relative to production, highlighting robust steel consumption across key industrial and infrastructure sectors and the significant role of alloy steels, including stainless steel, in India’s growth trajectory.

National Steel Policy 2017 was initiated with the intention to create a technologically advanced and globally competitive steel industry that promotes economic growth. Its mission is to provide environment for attaining self-sufficiency in steel production in India. It is an updated version of National Steel Policy 2005. The goal of the National Steel Policy is to foster a steel industry that can compete on a global scale. By 2030-31, it aims to boost per capita steel consumption to 160 kgs from the current level of about 63 kgs. Additionally, the policy seeks to fulfill all domestic demands for high-grade automotive steel, electrical steel, special steels, and alloys for strategic purposes by 2030-31. It also aims to enhance the availability of domestically washed coking coal to decrease reliance on imported coking coal from 85% to 65% by 2030-31.

Pros and strengths

Established, integrated manufacturing setup at strategic location: It primarily operates through its manufacturing facility which is spread across 35,196.98 sq.m (including unutilised area of the land around 17,610 Sq. m) of land at Halol Kalol Road, Kalol, Panchmahal, Gujarat. Its facility features an integrated manufacturing setup that covers the entire production chain ranging from melting and refining to casting/ rolling, treatment, testing and storage. Its manufacturing facility is also equipped with key infrastructure including an induction furnace, AOD, CCM, heat treatment facilities, rolling mill and bright bar shop. In addition to the same, its manufacturing facility is also equipped with an Oxygen Plant and a Nitrogen Plant which reduces its dependence on third party supplier. It uses a combination of mechanized and human skills to achieve the desired standards of manufacturing.

Diverse product portfolio: Its product portfolio comprises billets, forging ingots, rolled black bar, rolled bright bar, flat patti, wire rods and other ancillary products. It offers its products in more than eighty diverse grades of stainless steel. It specializes in the manufacture of stainless-steel products in a variety of sizes and grades having wide applications in varied industries. Its diverse product portfolio which includes a broad range of sizes and grades not only make it possible for it to meet evolving requirements of its customers and respond to changing market demands. This versatility also gives it a competitive edge, allowing it to compete more effectively in the industry. Its diversified product portfolio also reduces its dependency on a particular product and de-risked its revenue streams.

Established customer base and relationships: With over two decades of operating experience, it has established cordial relationships with a wide base of customers. A key factor that differentiates it from its competitors is its customer-centric approach, offering stainless-steel products tailored to specific customer requirements. This approach has supported its business growth while helping it expands its presence in the industry it operates in. Its long-term association with its key customers also offers competitive advantages including revenue visibility, industry goodwill and reputation for quality.

Track record of healthy growth: The company has demonstrated consistent growth in terms of revenues and profitability. It has been able to increase its revenue from operations from the year 2006 onwards. It, from being a Non-BIFR Sick Industrial Unit in the year 2006, has grown into a profit-making stainless-steel products manufacturing company. Onwards, the year 2006, it has demonstrated consistent growth in terms of revenues and profitability. Its revenue from operations has grown from Rs 3,604.07 lakh in Fiscal 2006 to Rs 93,215.58 lakh in Fiscal 2025 registering a CAGR of 18.67% in the last 19 years. Its financial performance demonstrates not only the growth of its operations over the years, but also the effectiveness of its management, its well-established customer relationship and cost monitoring that it has implemented. Among other things, its strong financial position and results of operations have enabled it to enhance scale of operation.

Risks and concerns

Dependence on top 10 customers: The company derives a significant portion of its revenue from operations from its top 10 customers, and it does not have long-term contracts with all these customers. For the six-month period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, its top ten customers accounted for around 44.93%, 41.69%, 41.95% and 44.20% of its revenue from operations. If one or more such customers choose not to source their requirements from it or to terminate its contracts or purchase orders, its business, cash flows, financial condition and results of operations may be adversely affected.

Significant revenue from Maharashtra, Gujarat and Uttar Pradesh: The company derives the majority of sales from the domestic market. it generates significant revenue from operations from the state of Maharashtra, Gujarat and Uttar Pradesh which amounts to Rs 45,684.91 lakh, Rs 84,500.50 lakh, Rs 79,245.58 lakh and Rs 86,416.05 lakh constituting 91.09%, 90.65%, 87.10% and 91.19% of total revenue from operations during the six-month period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Any adverse developments in this market could adversely affect its business.

Supply and delivery risks due to reliance on third-party transporters: The company is dependent on third-party transportation providers for the supply of materials for its manufacturing process and delivery of its finished products. Its success depends on the supply and transport of the raw material required to its manufacturing facility from suppliers and of its finished products from its manufacturing facility to its customers, which are subject to various uncertainties and risks. It uses third-party transportation providers for the delivery of materials to manufacturing facility and its finished products to customers. Transportation strikes, if any, could have an adverse effect on supplies and deliveries to its customers and from its suppliers. In addition, materials and components, as well as its products transported to customers, may be lost or damaged in transit for various reasons including occurrence of accidents or natural disasters. There may also be a delay in delivery of materials and products which may also affect its business and results of operations negatively.

Business operates in high-volume, low-margin industry: The stainless-steel industry is a high-volume low margin business due to various reasons such as higher operating costs and fixed as compared to cost of product. Its inability to regularly increase its turnover and effectively execute its key business processes could lead to lower profitability and hence adversely affect its operating results, debt service capabilities and financial conditions. Due to the nature of the products, it manufactures and sells, and due to high competition, it may not be able to charge higher margins on its products. Hence, its business model is heavily reliant on its ability to effectively grow its turnover and manage its key processes including but not limited to procurement of raw material and timely sales / order execution.

Outlook

Rajputana Stainless is engaged in the business of manufacturing of stainless-steel products such as Steel Billets, Angles, Wire Rod etc. The company also engaged in the business of generation of electricity through windmill & Solar. It offers its products in more than 80 diverse grades of stainless steel reflecting its ability to meet varied technical and application-specific requirements.  On the concern side, changes in market demand for its existing stainless-steel products, as well as downturns in end-use industries, may adversely affect its business, results of operations, and financial condition. Further, it operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on its business growth and prospects, financial condition and results of operations.

The issue has been offering 2,09,00,000 shares in a price band of Rs 116-122 per equity share. The aggregate size of the offer is around Rs 242.44 crore to Rs 254.98 crore based on lower and upper price band respectively. Minimum application is to be made for 110 shares and in multiples thereon, thereafter. On performance front, its revenue from operations increased by 2.46% from Rs 90,980.80 lakh in Fiscal 2024 to Rs 93,215.58 lakh in Fiscal 2025. It recorded an increase in its profit for the year by 26% from Rs 3,162.89 lakh in Fiscal 2024 to Rs 3,985.14 lakh in Fiscal 2025.

Meanwhile, it proposes to establish manufacturing of stainless-steel seamless pipes plant within the premise of its existing manufacturing facility. The basic raw material required for manufacturing of stainless-steel seamless pipes is rolled black/bright bar, which is being presently manufactured by the company in its existing manufacturing facility with rolling mill installed capacity of 36,000 MT per annum. This forward integration initiatives would enable the company to produce stainless-steel seamless pipes using raw materials manufactured in-house and will ultimately result in operational efficiency, reducing product costs, controlling supply of raw materials, and monitoring the quality of its products, thus giving it a competitive advantage. The proposed integrated set will also reduce delivery timelines which will allows it to service its customers faster, leads to higher operating margins.

The total revenue stands at Rs. 40.95 millions for the March 2026 quarter. The mentioned figure indicates an increase of about 545.90% as against Rs. 6.34 millions during  the year-ago period.The Total Profit for the quarter ended March 2026 of Rs. 2.23 millions grew from Rs.-19.66 millions Operating profit Margin for the quarter ended March 2026 improved to 7.65% as compared to -13.43% of corresponding quarter ended March 2025

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202603	202503	% Var	202603	202503	% Var	202603	202503	% Var
Sales	40.95	6.34	545.90	244.64	9.07	2597.24	244.64	9.07	2597.24
Other Income	20.50	6.11	235.52	75.28	28.54	163.77	75.28	28.54	163.77
PBIDT	7.65	-13.43	-156.96	55.15	-7.72	-814.38	55.15	-7.72	-814.38
Interest	5.04	5.95	-15.29	25.85	22.03	17.34	25.85	22.03	17.34
PBDT	2.61	-19.38	-113.47	29.30	-29.75	-198.49	29.30	-29.75	-198.49
Depreciation	0.38	0.28	35.71	1.35	1.06	27.36	1.35	1.06	27.36
PBT	2.23	-19.66	-111.34	27.95	-30.81	-190.72	27.95	-30.81	-190.72
TAX	0.00	0.00	0.00	0.00	-0.39	0.00	0.00	-0.39	0.00
Deferred Tax	0.00	0.00	0.00	0.00	-0.39	0.00	0.00	-0.39	0.00
PAT	2.23	-19.66	-111.34	27.95	-30.42	-191.88	27.95	-30.42	-191.88
Equity	128.99	110.48	16.75	128.99	110.48	16.75	128.99	110.48	16.75
PBIDTM(%)	18.68	-211.83	-108.82	22.54	-85.12	-126.49	22.54	-85.12	-126.49

The total revenue stands at Rs. 6.10 millions for the March 2026 quarter. The mentioned figure indicates an increase of about 165.22% as against Rs. 2.30 millions during  the year-ago period.Net Profit for the quarter ended March 2026 zoomed to 9806.25% from Rs. 3.20 millions to Rs. 317.00  millions.Operating profit Margin for the quarter ended March 2026 slipped to -780.70% as compared to 166.70% of corresponding quarter ended March 2025

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202603	202503	% Var	202603	202503	% Var	202603	202503	% Var
Sales	6.10	2.30	165.22	34.10	26.90	26.77	34.10	26.90	26.77
Other Income	354.20	439.10	-19.34	1771.70	2600.90	-31.88	1771.70	2600.90	-31.88
PBIDT	-780.70	166.70	-568.33	-44.80	1214.30	-103.69	-44.80	1214.30	-103.69
Interest	2.30	1.10	109.09	7.80	8.80	-11.36	7.80	8.80	-11.36
PBDT	177.60	140.60	26.32	4684.40	1017.10	360.56	4684.40	1017.10	360.56
Depreciation	22.10	14.90	48.32	51.40	45.10	13.97	51.40	45.10	13.97
PBT	155.50	125.70	23.71	4633.00	972.00	376.65	4633.00	972.00	376.65
TAX	-161.50	122.50	-231.84	2512.30	276.70	807.95	2512.30	276.70	807.95
Deferred Tax	-16.00	41.80	-138.28	1621.90	41.80	3780.14	1621.90	41.80	3780.14
PAT	317.00	3.20	9806.25	2120.70	695.30	205.01	2120.70	695.30	205.01
Equity	1500.00	1500.00	0.00	1500.00	1500.00	0.00	1500.00	1500.00	0.00
PBIDTM(%)	-12798.36	7247.83	-276.58	-131.38	4514.13	-102.91	-131.38	4514.13	-102.91

The sales slipped to Rs. 6451.18 millions, down -35.62% for the March 2026 quarter as against Rs. 10020.38 millions during the year-ago period.Net Profit of the company move down -60.33% to Rs. 386.11  millions from Rs. 973.28 millions  in the same quarter last year.The Operating Profit of the company witnessed a decrease to 756.52 millions from 1533.67 millions.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202603	202503	% Var	202603	202503	% Var	202603	202503	% Var
Sales	6451.18	10020.38	-35.62	25391.48	38706.25	-34.40	25391.48	38706.25	-34.40
Other Income	85.30	87.44	-2.45	381.66	342.42	11.46	381.66	342.42	11.46
PBIDT	756.52	1533.67	-50.67	3376.69	5821.42	-42.00	3376.69	5821.42	-42.00
Interest	123.98	138.08	-10.21	563.03	531.01	6.03	563.03	531.01	6.03
PBDT	632.54	1395.59	-54.68	2813.66	5290.41	-46.82	2813.66	5290.41	-46.82
Depreciation	91.35	81.13	12.60	353.88	307.03	15.26	353.88	307.03	15.26
PBT	541.19	1314.46	-58.83	2459.78	4983.38	-50.64	2459.78	4983.38	-50.64
TAX	155.08	341.18	-54.55	634.74	1253.00	-49.34	634.74	1253.00	-49.34
Deferred Tax	29.29	18.35	59.62	69.03	21.09	227.31	69.03	21.09	227.31
PAT	386.11	973.28	-60.33	1825.04	3730.38	-51.08	1825.04	3730.38	-51.08
Equity	4273.70	4244.98	0.68	4273.70	4244.98	0.68	4273.70	4244.98	0.68
PBIDTM(%)	11.73	15.31	-23.38	13.30	15.04	-11.58	13.30	15.04	-11.58

A fair growth of 5.02% in the revenue at Rs. 607.73 millions was reported in the March 2026 quarter as compared to Rs. 578.67 millions during year-ago period.The Net Profit of the company registered a slight decline of -10.71% to Rs. 43.51  millions from Rs. 48.73 millions.A decline of 69.33 millions was observed in the OP in the quarter ended March 2026 from 79.57 millions on QoQ basis.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202603	202503	% Var	202603	202503	% Var	202603	202503	% Var
Sales	607.73	578.67	5.02	1665.81	1233.66	35.03	1665.81	1233.66	35.03
Other Income	4.80	2.97	61.62	10.64	19.31	-44.90	10.64	19.31	-44.90
PBIDT	69.33	79.57	-12.87	253.70	155.11	63.56	253.70	155.11	63.56
Interest	2.98	6.43	-53.65	18.82	19.72	-4.56	18.82	19.72	-4.56
PBDT	66.35	73.14	-9.28	234.77	137.58	70.64	234.77	137.58	70.64
Depreciation	2.05	1.67	22.75	7.75	5.97	29.82	7.75	5.97	29.82
PBT	64.30	71.47	-10.03	227.02	131.61	72.49	227.02	131.61	72.49
TAX	20.79	22.74	-8.58	66.15	37.11	78.25	66.15	37.11	78.25
Deferred Tax	-0.71	1.41	-150.35	-1.90	-2.66	-28.57	-1.90	-2.66	-28.57
PAT	43.51	48.73	-10.71	160.87	94.50	70.23	160.87	94.50	70.23
Equity	100.65	0.14	71792.86	100.65	0.14	71792.86	100.65	0.14	71792.86
PBIDTM(%)	11.41	13.75	-17.04	15.23	12.57	21.13	15.23	12.57	21.13