Rajputana Industries Limited IPO

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Rajputana Industries Limited specializes in manufacturing a diverse range of non-ferrous metal products, primarily using copper, aluminium, brass, and various alloys sourced from recycled scrap metal. Their in-house manufacturing facility, located at SP-3, SKS Industrial Area, Reengus Extension, Sikar, Rajasthan, processes scrap metal into billets of aluminium, copper, or brass. These billets are either sold to other manufacturing companies or used internally to produce various products.

Product Range

Their product portfolio includes:  Copper rods, Aluminium rods, Copper mother tubes, Brass wires and Super enameled copper conductors. These products are manufactured in various shapes and sizes to meet customer requirements and market demands.

Growth and Specialization

Over the years, Rajputana Industries has grown into a large-scale organization, specializing in wires, tubes, bus bars, and rods made from various non-ferrous metals. Their products have numerous applications, meeting the needs of diverse industries.

With a focus on quality and innovation, Rajputana Industries Limited continues to strengthen its position in the market, delivering high-quality non-ferrous metal products to customers worldwide.

Objects of the Rajputana Industries Limited IPO:

The company proposes to utilize the Net Proceeds of the Fresh Issue towards funding the following objects: i. Funding the Working capital requirements of the company; ii. Purchase of Grid Solar Power Generating System; and iii. General corporate purposes.

Rajputana Industries Limited IPO Details:

Open Date: Jul 30 2024
Close Date: Aug 01 2024
Total Shares: 6,285,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 23.88 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 36 - 38 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 06 2024

Promoters And Management:

Shivani Sheikh is the Promoter, Chairman, and Managing Director of the Company. She holds a Bachelor of Engineering in Electrical with Honours from Pt. Ravishankar Shukla University, Raipur, and has over 25 years of experience, including in the metal industry. Shivani started M/s Shivani Electrical in 1998 and M/s S.S. Structure in 2008. She oversees the planning of Shera Group's finance and strategic management. Awarded as one of "The 10 Most Inspiring Business Women of the Year 2023" by Business Connect, she actively engages in operations, ensuring quality and connecting well with employees, bridging them with management. Sheikh Naseem is the Promoter and Whole-Time Director of the Company. He holds a Bachelor of Engineering (Hons.) in Electrical from Pt. Ravishankar Shukla University, Raipur, and has over 25 years of experience, including in the metal industry. In 1998, he started a small unit manufacturing transformers named "Shivani Electrical" with his wife. His expertise in machinery and technology led him to innovate in the Electrical Wire and Non-Ferrous Metal industries. In 2002, he founded "Shera Metals and Engineers" in Jaipur, and in 2009, he established Shera Energy Private Limited. Sudhir Garg is a Non-executive Director of the Company. He holds Bachelor in Science from Government College, Ajmer year and Post Graduation in Master in Arts (Economics) first class from University of Rajasthan, Jaipur. He is a SEBI Registered Sub-broker since 2001 and has been working as director in the Company since 2014. He has an experience of more than 2 decades years in various sectors including metal and electrical industry.

Financials of Rajputana Industries Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M -FY24
Revenue from Operations 18,522 24,435 25,467 14,269
Other Income 10 16 58 8
Total Revenue 18,533 24,451 25,525 14,277
Cost of materials consumed 18,199 23,720 24,492 13,892
Changes in inventories -1,219 -1,298 -1,311 -1,221
Employees Benefit Expenses 158 154 180 108
Other Expenses 469 672 864 560
EBITDA 925 1,203 1,299 939
OPM (%) 4.99% 4.92% 5.09% 6.57%
Depreciation & Amortisation 226 227 235 123
EBIT 699 977 1,065 815
Finance Cost 613 623 646 481
PBT 84 353 419 334
Tax 55 89 109 84
PAT 28 264 310 250
NPM (%) 0.15% 1.08% 1.21% 1.75%
No.of Shares 216.15 216.15 216.15 216.15
EPS 0.13 1.22 1.43 1.15

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Rajputana Industries Limited 255 3 1.15 26.5 38 82
Nupur Recyclers Limited 187 15 1.78 64.8 89.2 612
Baheti Recycling Limited 358 5 5.09 43.8 304 315
* All the data is as per FY23.

Recommendation on Rajputana Industries Limited IPO:

1. Rajputana Industries Limited is specialize in the manufacturing of a diverse range of non-ferrous metal products, primarily utilizing copper, aluminium, brass, and various alloys. 2. The billets produced from recycled scrap metal are either sold to various manufacturing companies or further processed into products such as copper rods, aluminium rods, copper mother tubes, brass wires, and super enameled copper conductors. These products, which include wires, tubes, bars, billets, and rods, are manufactured in a variety of shapes and sizes to meet customer specifications and market demand. 3. Growth and Market Presence Rajputana Industries has evolved into a prominent large-scale organization known for its specialization in wires, tubes, bus bars, and rods of various non-ferrous metals. Their products find extensive applications across different industries, reflecting their capability to cater to diverse market needs. 4. Competitive Landscape The non-ferrous metal industry is characterized by its unorganized and fragmented nature, comprising numerous small and medium-sized enterprises. As a participant in this global industry, they face competition from both domestic and international players. 5. The Revenue has Increased from Rs.185 Crore in FY21 to Rs.254 Crores in FY23. 6. The EBITDA has Increased from 9 Crores in FY21 to 13 Crores in FY23. 7. The PAT has Increased from 28 Lakhs in FY21 to 3 Crore in FY23. 8. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is 2.31, 9. Market Capitalization is 82 Crores & P/E is 16.43x based on FY24.

Lead Manager of Rajputana Industries Limited IPO:

  1. Holani Consultants Private Limited

Registrar of Rajputana Industries Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Rajputana Industries Limited F-269-B, Road No. 13, VKIA, Jaipur - 302013 Phone: +91 9588841031 Email: cs@rajputanaindustries.com Website: http://www.rajputanaindustries.com/

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