The Gujarat-based stainless steel maker wraps up its three-day public issue on Wednesday. Here’s a quick brief before the window shuts.
Rajputana Stainless Limited, a Kalal, Gujarat-based manufacturer of stainless steel long products, closes its IPO today — March 11. The company has been in the business of making billets, bars, ingots and flat stainless steel products since 1991, operating a fully integrated manufacturing facility and selling to over 370 industrial customers and traders across India and nine export markets.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | March 9, 2026 |
| Issue Closes | March 11, 2026 (Today) |
| Price Band | ₹116 – ₹122 per share |
| Issue Size | ₹255 crore (at upper band) |
| Fresh Issue | ₹178.7 crore |
| Offer for Sale | ₹76.3 crore |
| Total Shares Offered | 2,09,00,000 shares |
| Face Value | ₹10 per share |
| Bid Lot | 110 shares and multiples thereof |
| Post-Issue Market Cap | ₹1,020 crore (at upper band) |
| QIB / NII / Retail Split | 50% / 15% / 35% |
| Book Running Lead Manager | Nirbhay Capital Services Pvt. Ltd. |
| Registrar | KFin Technologies Ltd. |
What the Company Does
RSL manufactures stainless steel long products in over 80 grades, catering primarily to the construction, infrastructure, railways, and industrial sectors. Its integrated facility in Kalol covers the entire production chain — from melting and refining through casting, rolling, and finishing — with installed melting capacity of 48,000 MTPA and rolling capacity of 36,000 MTPA, both running at near-full utilization. Roughly 167 of its 370 customers have been buying from RSL for over three years, contributing around 76% of FY25 revenues.
Where the IPO Proceeds Go
Of the ₹178.7 crore fresh issue, ₹98 crore goes toward debt repayment, which will bring the company’s debt-to-equity ratio down sharply from 0.8x to approximately 0.2x. Another ₹18.6 crore is earmarked for expanding into stainless steel seamless pipes — a forward integration move targeting the oil & gas, chemicals, power, and food processing industries. RSL already manufactures the rolled bars that serve as the primary raw material for seamless pipes, making this a logical next step rather than a diversification gamble.
Financials and Valuation
| Particulars (₹ crore) | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|
| Revenue from Operations | 947.7 | 909.8 | 932.2 | 501.5 |
| EBITDA | 43.8 | 59.5 | 73.8 | 45.9 |
| EBITDA Margin | 4.6% | 6.5% | 7.9% | 9.2% |
| PAT | 24.0 | 31.6 | 39.8 | 24.4 |
| PAT Margin | 2.5% | 3.5% | 4.3% | 4.9% |
| EPS (₹) | 2.9 | 3.8 | 4.8 | 2.9 |
The consistent improvement in margins is the standout financial metric. EBITDA margins have expanded from 4.6% in FY23 to 9.2% in H1 FY26, while PAT margins have nearly doubled over the same period. Revenue has remained largely range-bound between ₹900–950 crore, meaning profitability gains are coming from operational efficiencies rather than volume growth. At the upper band of ₹122, the issue is priced at approximately 21–25x FY25 earnings and 12.6x EV/EBITDA on a post-issue basis.
Key Things to Know
Promoter shareholding drops from 78.2% pre-issue to 57% post-issue, with public float rising to 43%. The minimum investment at the upper band works out to ₹13,420 for one lot of 110 shares. The seamless pipes expansion is the key medium-term growth catalyst — it addresses higher-margin industrial segments and leverages existing raw material capabilities. Debt reduction from IPO proceeds will meaningfully lower finance costs going forward.
The GMP is low at about Rs 1-2 at present.
Risks to Consider
RSL’s topline has been largely stagnant between ₹900–950 crore over the last three financial years. Further, stainless steel manufacturing is heavily dependent on nickel, chromium, and scrap inputs, whose prices are globally determined and can swing sharply. The forward integration into seamless pipes is the central growth bet, but this is a new business segment for RSL. And the firm’s production is concentrated at the Kalol, Gujarat facility. Any operational disruption — regulatory, environmental, or otherwise — would directly impact the entire business.
