Rajputana Stainless Limited's initial public offering (IPO) opened for public subscription today, March 9, 2026, and will close on March 11, 2026. The company aims to raise ₹255 crore through this mainboard issue, which includes both a fresh issuance of shares and an offer for sale. Investors can bid for shares within the price band of ₹116 to ₹122 per equity share.
Grey Market Premium and Price Details[livemint+8]
Market observers indicate a modest grey market premium (GMP) for Rajputana Stainless shares, ranging from approximately ₹2 to ₹3 today. This suggests a potential listing at a small premium over the issue price. The IPO's price band is fixed at ₹116 to ₹122 per equity share, with a face value of ₹10 per share.
Retail investorsneed to apply for a minimum of one lot, which comprises 110 company shares. This translates to a minimum investment of ₹13,420 at the upper end of the price band. The allotment of shares is tentatively scheduled for March 12, 2026, with the shares expected to list on the BSE and NSE on March 16, 2026.[livemint+5]
About Rajputana Stainless Limited[livemint+6]
Established in 1991, Rajputana Stainless Limited operates as a prominent manufacturer of special steel in India. The company specializes in producing a diverse range of long and flat stainless steel products. Its portfolio includes billets, forging ingots, rolled black and bright bars, flat & patti, catering to over 80 different stainless steel grades.
These products serve as essential raw materials for various critical industries. Key sectors include seamless pipes, aerospace, forging, oil and gas, defense, automotive components, aviation, and precision engineering. Rajputana Stainless operates a fully integrated manufacturing facility located in Kalol, Gujarat, covering the entire production process from melting to finishing.[kotakneo+6]
IPO Structure and Objectives[samco+3]
The ₹255 crore IPO consists of a fresh issue amounting to ₹178.73 crore, representing 1.46 crore equity shares. Additionally, there is an offer for sale (OFS) of 62.50 lakh shares, aggregating to ₹76.25 crore, by promoter selling shareholder Shankarlal Deepchand Mehta.
Rajputana Stainless plans to utilize the net proceeds from the fresh issue for several key objectives. A significant portion, ₹18.57 crore, will fund capital expenditure for establishing a new manufacturing facility for stainless steel seamless pipes. This expansion aims to diversify the company's product portfolio. Another ₹98 crore is earmarked for the full or partial repayment of certain outstanding secured borrowings. The remaining funds will support working capital requirements for the proposed facility and general corporate purposes.[livemint+8]
Financial Performance
Rajputana Stainless has demonstrated steady growth in its financial performance. For the six months ending September 30, 2025, the company reported a revenue of ₹501 crore and a profit after tax of ₹24.4 crore. In the financial year 2025, its operational revenue reached ₹932 crore, with a net profit of ₹40 crore. This marked an increase from the ₹910 crore revenue and ₹31.6 crore net profit recorded in financial year 2024.[kotakneo+6]
The company's profitability and return ratios have shown improvement in recent years. Its EBITDA margin stood at 9.16%, and the PAT margin was 4.87% as of September 30, 2025. This reflects a healthy operating performance and efficient capital deployment, with a Return on Equity (ROE) of 14.86% and Return on Capital Employed (ROCE) of 16.55%.[m+4]
Key Risk Factors for Investors
Investors should consider several risk factors outlined in the company's Red Herring Prospectus (RHP). A significant portion of Rajputana Stainless's revenue relies on its top 10 customers, and not all these relationships are governed by long-term contracts. Similarly, the company depends on a limited number of suppliers for raw materials, posing a risk if disruptions occur.[finnpick+2]
The company operates a single manufacturing facility in Gujarat, making its operations susceptible to local economic conditions or disruptions at that site. Furthermore, Rajputana Stainless has experienced negative cash flows from investing and financing activities in recent periods, including the six months ended September 30, 2025, and previous financial years.[livemint+2]
The stainless steel industry is highly competitive and cyclical, which can impact demand and pricing. The company also faces regional risks, as a bulk of its domestic revenue comes from specific markets like Maharashtra, Gujarat, and Uttar Pradesh. Legal proceedings involving the company and its promoters, along with significant contingent liabilities, also present potential financial risks.[livemint+2]
Initial Subscription Status and Outlook
On its first day of bidding, the Rajputana Stainless IPO saw a moderate response from investors. By late afternoon on March 9, 2026, the public issue was subscribed approximately 21% to 30% overall. Qualified Institutional Buyers (QIBs) showed strong interest, with their portion subscribed between 59% and 99%. The Non-Institutional Investors (NIIs) segment was subscribed around 26% to 65%, while the retail portion received bids for approximately 3% to 4% of the shares on offer.
An interesting development prior to the IPO opening involved the withdrawal of an anchor investor. Rajputana Stainless had initially raised ₹10 crore from a single anchor investor, but this allocation was later withdrawn because it did not meet SEBI's criteria for the minimum number of anchor investors.[livemint+5]
Despite the slow start in subscription, analysts from Anand Rathi have recommended subscribing to the IPO, citing the company's consistent track record and superior financial metrics. They note that the valuation of Rajputana Stainless at approximately 21 times its FY25 earnings (at the upper price band) is fair compared to its competitors.[chittorgarh+2]
Investors will closely watch the subscription figures as the IPO continues, with the bidding period concluding on March 11, 2026.[livemint+2]
