Rajputana Stainless IPO: Check brokerages review, subscription, GMP and other details

The IPO of Rajputana Stainless opened for subscription on Monday, with grey market signals pointing to limited listing gains amid cautious sentiment in the broader market. The IPO, which will close on March 11, is priced in the band of Rs 116-122 per share and aims to raise about Rs 255 crore through a combination of fresh issue and offer for sale.

At the upper end of the price band, the company's shares are commanding a grey market premium of around 1%, suggesting modest listing gains if current trends persist. The issue comprises a fresh issue of shares worth about Rs 179 crore and an offer for sale of up to Rs 76 crore by existing shareholders. The company plans to list on the BSE and NSE, with the tentative listing scheduled for March 16.

Rajputana Stainless, incorporated in 1991, manufactures long and flat stainless steel products such as billets, forging ingots, bright bars and flat bars used in industries ranging from automotive and engineering to forging and pipe manufacturing. The company operates an integrated manufacturing facility and primarily caters to business-to-business clients across multiple industrial sectors.


The proceeds from the fresh issue will be used mainly for expansion of its manufacturing facility in Gujarat through forward integration into stainless steel seamless pipes, repayment or prepayment of certain borrowings, and general corporate purposes.

Financially, the company has shown steady profitability. For the six months ended September FY26, Rajputana Stainless reported revenue of Rs 501 crore and a profit after tax of Rs 24.4 crore. For FY25, the company posted revenue of Rs 932 crore and net profit of Rs 40 crore, indicating improving margins over the past few years.

Industry prospects also remain supportive. India is among the world’s largest producers and consumers of stainless steel, with domestic demand expected to grow steadily driven by infrastructure development, manufacturing expansion and rising industrial activity.

However, the sector faces challenges such as raw material price volatility and competition from cheaper imports, particularly from countries such as China and Indonesia.

With broader market volatility and weak sentiment in the SME and midcap space, the IPO’s grey market premium suggests investors are approaching the issue cautiously.

Should you subscribe?

Brokerages tracking the issue have largely recommended subscribing for long-term investment, citing the company's integrated manufacturing setup, diversified product portfolio and steady financial performance.

Adroit Financial Services has advised investors to subscribe to the IPO for long-term investment, noting that the company’s expansion into value-added products such as stainless steel seamless pipes could improve margins and strengthen its market position.

Similarly, Anand Rathi Research believes the IPO is fairly valued at around 21 times post-issue earnings at the upper price band. The brokerage highlighted the company’s consistent track record and stable financial metrics while recommending investors subscribe to the issue.

That said, analysts caution that the stainless steel industry remains cyclical and vulnerable to cheaper imports, making earnings sensitive to commodity price swings and demand cycles.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)