The Rajputana Biodiesel IPO is a book-built issue with a total size of ₹24.70 crores. The issue comprises entirely of a fresh issue of 19 lakh shares. The IPO will open for subscription on November 26, 2024, and close on November 28, 2024. The allotment of shares is expected to be finalized by Friday, November 29, 2024. The shares will be listed on the NSE SME platform, with the tentative listing date set for Tuesday, December 3, 2024.
The price band for the Rajputana Biodiesel IPO is set between ₹123 and ₹130 per share. Retail investors can apply for a minimum lot size of 1,000 shares, requiring a minimum investment of ₹1,30,000. For High Net-Worth Individuals (HNIs), the minimum lot size is 2 lots (2,000 shares), which amounts to ₹2,60,000.
Rajputana Biodiesel IPO Overview
| IPO Date | November 26, 2024 to November 28, 2024 |
|---|---|
| Listing Date | 3rd december |
| Face Value | ₹10 per share |
| Price Band | ₹123 to ₹130 per share |
| Lot Size | 1000 Shares |
| Total Issue Size | 1,900,000 shares |
| (aggregating up to ₹24.70 Cr) | |
| Fresh Issue | 1,900,000 shares |
| (aggregating up to ₹24.70 Cr) | |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 5,133,500 |
| Share holding post issue | 7,033,500 |
| Market Maker portion | 141,000 shares |
Founded in 2016, Rajputana Biodiesel Limited produces and supplies biofuels and their by-products, including glycerine and fatty acids.
The company’s production facility is located at G24 RIICO Industrial Area, Phulera, Rajasthan 303338, covering an area of 4,000 square meters. It has an approved production capacity of 30 kiloliters per day (kl/pd) and an installed production capacity of 24 kiloliters per day (kl/pd).
Rajputana Biodiesel’s product range includes Bio-Diesel, Crude Glycerin, Caustic Potash Flakes, Waste Sludge, Used Cooking Oil, Esterified Fatty Acids, Methanol, Citric Acid, Refined Rice Oil, Crude Sunflower Oil, Sodium Methoxide, RBD Palm Sterin, semi-refining of glycerine for other manufacturers (Job Work), and Fats.
Rajputana Biodiesel Limited Financial Information
Rajputana Biodiesel Limited has shown significant financial growth in recent years. For the financial year ending March 31, 2024, the company experienced a remarkable 128% increase in revenue, which rose to ₹5,367.51 lakhs from ₹2,354.06 lakhs in FY 2023. Additionally, the profit after tax (PAT) saw a substantial growth of 168%, reaching ₹452.43 lakhs, compared to ₹168.83 lakhs in the previous year.
As of July 31, 2024, the company’s assets stood at ₹4,626 lakhs, with a net worth of ₹1,573.81 lakhs, showing a sharp increase from ₹454.99 lakhs in FY 2023. The reserves and surplus grew from a negative ₹7.01 lakhs in March 2023 to ₹1,050.46 lakhs by July 2024. The company’s total borrowings also increased to ₹1,989.23 lakhs as of July 31, 2024, up from ₹887.12 lakhs in FY 2023, reflecting its expansion and growth in the biodiesel sector.
Key Performance Indicator
As of July 31, 2024, Rajputana Biodiesel Limited’s key performance indicators (KPIs) highlight a strong financial position. The company’s Return on Capital Employed (ROCE) stands at 11.00%, and its Return on Net Worth (RoNW) is 16.49%. The debt-to-equity ratio is 1.26, indicating a moderate level of financial leverage. The Price-to-Book Value (P/BV) is 4.24, reflecting the market’s valuation of the company’s equity relative to its book value. The Profit After Tax (PAT) margin is 9.71%, showcasing a healthy profitability level.
In terms of earnings, Rajputana Biodiesel’s earnings per share (EPS) is expected to increase from ₹8.81 pre-IPO to ₹11.07 post-IPO. Correspondingly, the Price-to-Earnings (P/E) ratio is projected to decrease from 14.75x pre-IPO to 11.74x post-IPO, suggesting a more attractive valuation after the offering. The market capitalization of the company is currently ₹91.44 crore.
Objects of the Issue (Rajputana Biodiesel IPO Objectives)
The company plans to use the funds raised through this issue for the following purposes:
- Providing a loan to its subsidiary, Nirvaanraj Energy Private Limited (NEPL), located at H No – 576, Sheel Kunj Ph – II, Roorkee Road, Dist. – Meerut, Uttar Pradesh, 250001. This loan will be used for capital expenditure to expand NEPL’s existing manufacturing facility.
- Meeting the working capital requirements of the company.
- Addressing general corporate purposes
Rajputana Biodiesel Limited Contact Details
Rajputana Biodiesel Limited
Jaipuria Mansion, Panch Batti,
M.I. Road, Jaipur – 302001
Phone: +91-9509222333
Email: cs@rajputanabiodiesel.com
Website: https://rajputanabiodiesel.com/
Rajputana Biodiesel IPO Registrar
Maashitla Securities Private Limited
Phone: +91-11-45121795-96
Email: ipo@maashitla.com
Website: https://maashitla.com/allotment-status/public-issues
Rajputana Biodiesel IPO Peer Comparison
As of March 28, 2024, Rajputana Biodiesel Limited’s key financial metrics show a solid performance when compared to a similar listed entity, Kotyark Industries Limited. Rajputana Biodiesel has an earnings per share (EPS) of ₹5.06 (both basic and diluted) and a net asset value (NAV) per share of ₹30.66.
The company boasts a Return on Net Worth (RoNW) of 16.49% and a Price-to-Book Value (P/BV) ratio of 4.33. In comparison, Kotyark Industries Limited has a higher EPS of ₹17.36 (both basic and diluted) and a NAV per share of ₹150.06. Kotyark’s P/E ratio stands at 51.41, indicating a higher valuation compared to Rajputana Biodiesel, which does not have its P/E ratio disclosed. Kotyark Industries also shows a slightly higher RoNW of 11.56% and a P/BV ratio of 6.63. These comparisons highlight Rajputana Biodiesel’s competitive standing in the market relative to its peers.
Rajputana Biodiesel IPO GMP
| GMP Date | IPO Price (₹) | GMP (₹) | Today's Movement | Sub2 Sauda Rate | Estimated Listing Price (₹) | Percentage Change (%) | Last Updated |
|---|---|---|---|---|---|---|---|
| 20-Nov-2024 | 130.00 | 30 | GMP Up | 22,800 | 160 | 23.08% | 20-Nov-2024 14:56 |
| 19-Nov-2024 | 130.00 | 21 | GMP No Change | 16,000 | 151 | 16.15% | 19-Nov-2024 22:30 |
IPO Investor Categories
In an IPO, shares are allocated to different types of investors based on their category. Here’s a simple breakdown of the various investor categories:
- Qualified Institutional Buyers (QIBs)
QIBs include financial institutions, banks, mutual funds, and Foreign Institutional Investors (FIIs) that are registered with SEBI. These investors typically represent smaller investors who invest through mutual funds, insurance companies’ ULIP schemes, and pension funds. - Non-Institutional Investors (NII)
Non-Institutional Investors are individual investors, companies, trusts, and others who bid for shares worth more than ₹2 lakhs. They don’t need SEBI registration, unlike QIBs. The NII category is divided into two subcategories:- Small NII (sNII): This subcategory includes investors who bid for shares worth between ₹2 lakhs to ₹10 lakhs. One-third of the NII shares are reserved for this category, also known as Small HNI (sHNI).
- Big NII (bNII): This subcategory is for investors who bid for shares worth more than ₹10 lakhs. Two-thirds of the NII shares are reserved for this group, also known as Big HNI (bHNI).
- Retail Individual Investors (RII)
Retail Individual Investors (RIIs) are regular investors, including NRIs, who apply for shares worth up to ₹2 lakhs in the IPO. This is the most common category for individual investors. - Employee (EMP)
This category includes employees of the company who have a reserved quota of shares in the IPO. - Others
This category includes eligible shareholders or other investors who also have a reserved quota of shares in the IPO.
Each of these categories has different rules and allocations depending on the type of investor and their investment size.
Conclusion
In conclusion, Rajputana Biodiesel Limited’s upcoming IPO presents a promising investment opportunity with strong financial growth, a solid product portfolio, and a competitive market position. The IPO will be offered to various categories of investors, including QIBs, NIIs (with subcategories for small and big investors), RIIs, employees, and others. The funds raised will support the company’s expansion and working capital needs. With a reasonable price band and healthy market expectations, this IPO could attract diverse investor interest.