Jajoo Rashmi Refractories is a prominent name in the world of ferro-alloys and refractory products. The company has filed draft papers with the Securities and Exchange Board of India (SEBI), looking to raise up to INR 150 crore through a fresh issue of equity shares. This move marks their first foray into the public markets.
Jajoo Rashmi Refractories – Overview
Founded more than 20 years ago, Jajoo Rashmi Refractories has become a go-to supplier for the steel industry, providing essential materials like ferro silicon, ferro manganese, and silico manganese. Their products don’t just stop at alloys; they also churn out refractory materials like ramming mass and casting powders, crucial for steel production.
The company operates from three facilities spread across Jaipur, Kalyaneshwari, and Kandla SEZ. These sites together can produce up to 78,000 metric tons per annum. What’s impressive is that over 90% of their income comes from exports, with products reaching 29 countries, mainly in the Middle East and Western Europe.
IPO Breakdown:
This IPO is all about new shares; there’s no Offer for Sale. All the money raised will go straight into the company’s expansion plans. The shares are divided into:
- QIB – 50% of the issue size
- NII – 15% of the issue size
- RII – 35% of the issue size
Unistone Capital has been appointed as the Book Running Lead Manager, while Bigshare will act as the Registrar of the Issue.
Financial Performance: Steady and Strong
Looking at the numbers for the quarter ending 30 June 2024, Jajoo Rashmi Refractories pulled in INR 117.45 crore in revenue, with a profit before tax of INR 8.57 crore and a net profit of INR 6.392 crore. The company’s been on an upward trajectory.
Object of the Proceeds
A significant amount of IPO proceeds will fund new manufacturing units in Bokaro, Jharkhand, expanding production capacity. Some funds will also go toward general corporate purposes, helping the company keep up with growing global demand.
Being new to the public markets, there are risks. No established market for their shares yet, and past performance isn’t a guaranteed predictor of the future. Investors should do their research before jumping in.
Wrapping Up
This IPO could be a game-changer for Jajoo Rashmi Refractories, offering investors a stake in a company with deep roots and ambitious plans. As they navigate through SEBI’s hoops, the industry watches closely, eager to see how this manufacturer will fare in the open market. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
