P S Raj Steels Ltd
P S Raj Steels Ltd, a prominent manufacturer and supplier of stainless-steel pipes and tubes in India, has announced its Initial Public Offering (IPO) to raise capital for business expansion. The IPO is scheduled to open on February 12, 2025, and close on February 14, 2025.
Company Overview
Established in November 2004, P S Raj Steels Ltd specializes in producing a diverse range of stainless-steel products, including over 250 standard sizes of pipes and tubes. The company’s product portfolio encompasses:
- Stainless Steel Pipes & Tubes
- Stainless Steel Coils & Sheets
- Stainless Steel Strips, Bars & Angles
- Stainless Steel Sheets & Plates
Operating from its manufacturing facility in Hisar, Haryana, with an installed capacity of 13,460 metric tons per annum, the company serves various sectors such as railways, furniture, households, gate railing, door frames, rice plants, sugar mills, food processing, and heat exchangers.
IPO Timeline
- Issue Open Date: February 12, 2025
- Issue Close Date: February 14, 2025
- Allotment Finalization: February 17, 2025
- Refund Initiation: February 18, 2025
- Shares Credited to Demat Accounts: February 18, 2025
- Listing Date: February 19, 2025
Price Band and Lot Size
- Price Band: ₹132 to ₹140 per equity share
- Face Value: ₹10 per share
- Lot Size: 1,000 shares
- Minimum Investment: ₹132,000
Investors can bid for a minimum of 1,000 equity shares and in multiples of 1,000 shares thereafter.
Financials
The company’s financial performance over the past three fiscal years is as follows:
| Fiscal Year | Revenue (₹ Crores) | Net Profit (₹ Crores) |
|---|---|---|
| 2021-2022 | 179.72 | 3.57 |
| 2022-2023 | 225.43 | 3.65 |
| 2023-2024 | 297.75 | 6.36 |
Strengths
- Diverse Product Range: Offers over 250 standard sizes with customization options to meet specific customer requirements.
- Strategic Supply Chain: Maintains a cost-effective supply chain through a partnership with Jindal Stainless Limited (JSL).
- Robust Distribution Network: Covers 18 Indian states, serving Original Equipment Manufacturers (OEMs) and traders, supported by 77 dealers.
- Revenue Streams: Approximately 60% of revenue is generated from dealers, with the remaining 40% from direct sales.
- Modern Manufacturing Facility: Continuously upgraded to meet evolving market demands.
Risks
- Geographical Concentration: Significant business operations in four states may expose the company to regional market risks.
- Supplier Dependence: Relies on Jindal Stainless Limited (JSL) for 95% of raw materials, posing potential supply chain risks.
- Lack of Long-term Agreements: Absence of long-term supply agreements with key suppliers could lead to supply disruptions.
- Customer Concentration: Over 60% of revenue is derived from the top 10 customers, indicating high revenue concentration.
- Working Capital Intensive: Requires substantial funds to maintain operational liquidity.
- Price Volatility: Fluctuations in steel prices can adversely affect profitability.
IPO Anchor Investors Details
As of now, specific details regarding anchor investors for P S Raj Steels Ltd’s IPO have not been disclosed.
IPO Promoter Holding
Detailed information about the promoter holding structure is currently unavailable.
IPO Grey Market Premium (GMP)
As of the latest reports, there is no Grey Market Premium (GMP) available for P S Raj Steels Ltd’s IPO.
Final Thoughts
P S Raj Steels Ltd’s upcoming IPO presents an opportunity for investors interested in the stainless-steel manufacturing sector. The company’s diverse product range, strategic supply chain partnerships, and robust distribution network are notable strengths. However, potential investors should carefully consider the associated risks, including supplier dependence and revenue concentration. As always, conducting thorough due diligence and consulting with financial advisors is recommended before making investment decisions.