The Rajputana Biodiesel IPO, priced between ₹123-₹130 per share, opens on November 26, 2024, and closes on November 28, 2024. With an issue size of ₹24.70 crore, this SME IPO reserves 50% of shares for retail investors. The Rajputana Biodiesel IPO GMP currently trading at ₹70 indicates positive sentiment, suggesting potential listing gains.
As a biodiesel producer in the renewable energy sector, the company has shown consistent financial growth, making this IPO appealing to risk-taking investors.
Rajputana Biodiesel
Rajputana Biodiesel Ltd is a renewable energy company primarily involved in biodiesel manufacturing. Their business model revolves around providing biodiesel to key players like oil marketing companies (OMCs), refineries, and other industrial clients. As India accelerates its efforts towards reducing carbon emissions, the company’s focus on green energy positions it strategically in a sector with immense potential.
Rajputana Biodiesel IPO Details
The IPO is classified under the SME category, meaning it is targeted toward small and medium-sized enterprises. Below are the specifics:
| Aspect | Details |
|---|---|
| IPO Type | SME (Book Building) |
| Issue Size | ₹24.70 crore |
| Price Band | ₹123 – ₹130 per share |
| Market Lot | 1,000 shares |
| Minimum Investment | ₹123,000 |
| Listing Exchange | NSE SME |
| Retail Quota Allocation | 50% of the total issue size |
| NII Quota Allocation | 15% |
| QIB Quota Allocation | 35% |
Rajputana Biodiesel IPO GMP Today
The Grey Market Premium (GMP) for Rajputana Biodiesel IPO is currently around ₹70. This reflects moderate optimism among investors. While GMP is a useful indicator, it is speculative and may not always translate to listing-day gains.
Rajputana Biodiesel IPO Opening Date
Investors keen on participating must take note of these key dates:
| Event | Date |
|---|---|
| IPO Opens | November 26, 2024 |
| IPO Closes | November 28, 2024 |
| Basis of Allotment | December 1, 2024 |
| Refunds Initiated | December 2, 2024 |
| Shares Credited | December 3, 2024 |
| Listing Date | December 4, 2024 |
Rajputana Biodiesel IPO Financial Performance
The financial results of Rajputana Biodiesel reveal a company on a growth trajectory, with revenue and profits increasing consistently over the past three years. Here’s how they’ve performed:
| Year | Revenue (₹ Cr) | Expenses (₹ Cr) | Profit After Tax (₹ Cr) |
|---|---|---|---|
| FY2022 | 244.51 | 240.98 | 2.64 |
| FY2023 | 255.25 | 251.06 | 3.10 |
| FY2024 | 327.01 | 320.14 | 5.13 |
Other notable valuation metrics include:
- Earnings Per Share (EPS): ₹3.34
- Return on Net Worth (RoNW): 15.74%
- Net Asset Value (NAV): ₹21.25 per share
How Will the IPO Proceeds Be Used?
The funds raised will primarily go toward:
- Subsidiary Expansion: Investing in Nirvaanraj Energy Pvt. Ltd., a wholly-owned subsidiary focused on complementary green energy operations.
- Working Capital: Addressing short-term liquidity and operational needs.
- General Corporate Purposes: Strengthening the overall financial health of the company.
Key Strengths and Risks
Strengths
- Sector Advantage: With the government’s push for renewable energy, Rajputana Biodiesel operates in a high-growth industry.
- Consistent Growth: The company’s improving revenue and profitability indicate efficient operations.
- Strategic Vision: Expansion plans and a strong market position in the biodiesel space boost long-term potential.
Risks
- SME IPO Liquidity: SME stocks tend to have lower liquidity, which can impact stock performance post-listing.
- Regulatory Dependency: Changes in government policies for renewable energy could significantly affect the company.
- Competition: Larger players in the biodiesel and renewable energy market may limit growth potential.
Should You Invest?
For Risk-Taking Investors
The IPO offers a compelling opportunity for those bullish on the renewable energy sector. Its growing financials and strategic use of funds suggest long-term potential.
For Conservative Investors
Given the inherent risks of SME IPOs, it might be wise to adopt a cautious approach and wait for more clarity on the company’s operational execution post-listing.
FAQs
- What is the GMP for Rajputana Biodiesel IPO today?
The GMP is currently ₹15, indicating moderate demand. - How to apply for the IPO?
You can apply through ASBA using your bank account or platforms like Zerodha, Upstox, and Paytm Money. - Is this IPO suitable for retail investors?
With 50% allocation to retail investors, it offers a fair chance. However, consider your risk appetite before investing. - What is the expected listing price?
While the GMP suggests a premium, actual listing performance will depend on market demand and broader sentiment.