Steel tubes & pipes manufacturer P S Raj Steels has received approval from NSE Emerge for its upcoming IPO, which is scheduled to launch in early 2025. The IPO will comprise a fresh issue of 20,20,000 shares, of face value INR 10 per share.
The company is preparing its RHP for listing on NSE Emerge soon. Khambatta Securities has been appointed as the Book Running Lead Manager (BRLM) for the issue, while Bigshare will act as the registrar. The IPO is already generating significant hype among investors ahead of its listing in the primary market.
P S Raj Steels IPO Goals and Fund Allocation:
According to its issue prospectus, P S Raj Steels plans to allocate INR 23.5 crore from IPO proceeds to meet working capital needs. These funds will be directed toward procuring raw materials, building inventory, and managing receivables and payables effectively. The rest will go toward covering IPO-related costs.
With this infusion of capital, the company intends to enhance production efficiency, streamline processes, and expand its market reach. The move is expected to bolster infrastructure, ramp up manufacturing capacity, and maintain steady inventory levels.
About the Company
Headquartered in Hisar, Haryana, P S Raj Steels manufactures a wide range of stainless steel pipes and tubes, boasting a portfolio of around 250 sizes. Its edge lies in producing larger-diameter pipes and custom sizes catering to original equipment manufacturers (OEMs).
Serving diverse industries—railways, furniture, and industrial applications—the company has carved out a solid reputation for quality and reliability. Spread across 3 acres, its Hisar facility has an annual production capacity of 13,460 metric tons.
Operating under the “PSSR” brand, P S Raj Steels has established its business in 19 states, including major business states such as Uttar Pradesh, Haryana, Punjab, Madhya Pradesh, Delhi, and Rajasthan. The company also has a widespread distribution network that ensures strong market penetration and accessibility across urban and semi-urban areas.
Supply Chain Dynamics
A vital cog in P S Raj Steels’ operations is its partnership with Jindal Stainless (JSL). Having maintained a 12-year relationship with JSL, which supplies nearly 95% of the company’s raw materials, the company benefits from a steady and reliable supply chain.
This longstanding relationship formalized through an MOU, ensures raw material stability and helps the company maintain consistent production timelines and product quality—an essential factor in meeting rising customer demand.
Financial Snapshot
The numbers tell an impressive story. In FY24, P S Raj Steels posted a revenue of INR 297.74 crore and a net profit of INR 6.36 crore. These figures reflect a substantial leap from FY23, which saw revenue of INR 225.42 crore and a net profit of INR 3.65 crore.
The consistent growth highlights the company’s ability to scale operations while staying profitable—an attractive proposition for investors scouting reliable opportunities.
Leadership and Promoters
At the helm of P S Raj Steels are seasoned veterans Raj Kumar Gupta, Deepak Kumar, Vishal Gupta, and Gaurav Gupta. With over 50 years of combined experience in the steel pipes and tubes sector, the leadership team has steered the company through market challenges and growth phases.
Their expertise and strategic insights have been instrumental in shaping the company’s expansion plans and maintaining its competitive edge. The team’s clear focus on innovation and operational excellence continues to push the company forward.
Final Thoughts
P S Raj Steels’ upcoming IPO offers an intriguing opportunity for investors. The company’s track record, market positioning, and growth trajectory make it a noteworthy contender in the stainless-steel segment.
Armed with a robust financial foundation, strategic expansion plans, and experienced leadership, the firm is set to leverage its IPO proceeds to strengthen operations and boost market reach. As P S Raj Steels gears up for its NSE debut, it promises to be a name to watch in the coming months.
With preparations underway, investors can expect further updates as the IPO progresses. For now, the company stays focused on delivering value, scaling operations, and solidifying its place as a leader in India’s stainless-steel market. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
