Gujarat-based long and flat stainless steel products manufacturer Rajputana Stainless has refiled its DRHP with the Securities and Exchange Board of India (SEBI) after its initial submission in December 2024 was returned on 11 April 2025. The company is looking to tap capital markets as it plans to focus on forward integration, debt optimization and product diversification especially in high growth segment of stainless-steel seamless pipes.
Rajputana Stainless IPO will be a big milestone in the company’s corporate journey – from a revived sick unit in late 1990s to a profitable stainless steel manufacturer with presence in domestic and select international markets.
Rajputana Stainless IPO Revised Structure: Higher OFS, Lower Fresh Issue
According to the refiled DRHP dated June 2025, the public issue will consist of:
- Fresh issue of up to 1.46 crore equity shares
- Offer for Sale (OFS) of up to 62.5 lakh shares by promoter Shankarlal Deepchand Mehta
Total 2.09 crore equity shares, the revised structure is a big change from the company’s earlier proposal filed in December 2024 which had a larger fresh issue of 1.9 crore shares and smaller OFS of 35 lakh shares.
This means a dual focus – while the fresh issue will help in capital intensive growth and debt reduction, the larger OFS will allow the promoter to partially monetize his holding in a favorable market.
Utilization of Proceeds: Deleveraging + Seamless Pipes Facility
The net proceeds from the fresh issue are intended to be deployed toward:
- INR 98 crore: Full or partial repayment of secured borrowings, aiding debt reduction and improving the debt-to-equity ratio (currently 0.63x as of Dec 2024)
- INR 18.3 crore: Setting up a new manufacturing unit for stainless-steel seamless pipes—a forward integration that leverages the company’s in-house production of rolled bars
- Balance amount will be used for general corporate purposes
Business Snapshot: A Two-Decade Transformation
Founded in 1991 and commercially operational since 1993, Rajputana Stainless was revived from a sick industrial unit in 1999, post which it shifted its focus from mild steel products to high-grade stainless steel. Today, the company produces a wide range of long and flat stainless steel products, including:
- Billets
- Forging ingots
- Rolled black and bright bars
- Flats and pattis
- Wire rods and ancillary products
Operating under the “RSL” brand, Rajputana serves a pure B2B clientele, consisting of manufacturers and traders. It boasts the capability to produce across 80+ stainless steel grades, catering to end-users in construction, automotive, oil & gas, engineering, casting, and forging sectors.
Manufacturing Backbone: Near-Full Capacity Utilization
Rajputana’s main plant on the Halol-Kalol Road is equipped with advanced and integrated infrastructure. Key capacity and utilization metrics as of 31 Dec 2024, are:
| Process | Installed Capacity (MTPA) | Utilization (%) |
|---|---|---|
| Melting | 48,000 | 99.37% |
| Rolling | 36,000 | 99.95% |
| Bright Bar | 6,000 | 29.78% |
| Heat Treatment | 2,000 | 100% |
| Oxygen & Nitrogen Plants | 350/200 CuM/hr | 100% |
To manage fluctuating demand, Rajputana supplements in-house production with job-work arrangements from third-party vendors. In FY24 alone, ~6,800 MT of output was derived via outsourcing.
Financial Snapshot
The company has shown sustained improvement in revenues, margins, and returns over recent fiscal periods. Highlights:
| Metric | FY22 | FY23 | FY24 | 9M FY25 |
|---|---|---|---|---|
| Revenue from Opration | 766.4 | 947.7 | 909.8 | 684.1 |
| EBITDA | 30.2 | 43.8 | 59.4 | 56.0 |
| EBITDA Margin (%) | 3.95% | 4.63% | 6.53% | 8.19% |
| PAT | 8.7 | 24.0 | 31.6 | 31.6 |
| Net Margin (%) | 1.13% | 2.54% | 3.48% | 4.62% |
| ROCE (%) | 18.51% | 25.72% | 32.17% | 24.97% |
| ROE (%) | 16.55% | 34.62% | 32.70% | 24.66% |
| D/E Ratio (X) | 1.59 | 0.98 | 0.71 | 0.63 |
Rajputana’s financial turnaround, backed by stable cash flows (INR 31.4 crore in FY24 OCF), improved return ratios, and a falling leverage profile, provides a solid foundation for future growth.
Market Footprint: Stronghold in Domestic Market with Growing Exports
The company has a wide domestic footprint, with major revenue contributions from Maharashtra, Gujarat, and Uttar Pradesh. It also exports to eight countries, including USA, UAE, Poland, Portugal, Turkey, South Africa, Czech Republic, and Kuwait.
| Revenue Breakdown | FY24 (INR Cr) | 9M FY25 (INR Cr) |
|---|---|---|
| Domestic | 904.9 (99.47%) | 676.8 (98.93%) |
| Export | 4.86 (0.53%) | 7.33 (1.07%) |
Entry into Stainless-Steel Seamless Pipes
A key thrust of the Rajputana Stainless IPO is forward integration into the manufacturing of stainless-steel seamless pipes, used in high-performance applications across:
- Oil & gas
- Petrochemicals
- Power
- Construction
- Automotive
- Food & beverages
India’s demand for seamless pipes has risen from 80,626 MT in FY12 to 2,14,654 MT in FY24. With significant imports (~18,000 MT) still coming from China, domestic substitution via Make in India and PLI schemes offers enormous headroom.
Favorable Steel Cycle & Policy Push
India’s stainless steel market is on a structural upswing:
- FY24 finished steel production: 139.4 MT (12.7% YoY growth)
- FY25 (Apr–Jan) consumption: 124.8 MT vs 119.5 MT production
- CAGR (last 3 years): Production – 4%; Consumption – 10.7%
- Projected Stainless Steel Demand: 3.5 MT in FY24 → 5.5 MT by 2030 (CAGR 6.6%)
The government’s National Infrastructure Pipeline, Gati Shakti master plan, PLI schemes, and sustained capex by private and public sectors are expected to drive further growth in steel consumption, particularly in long steel products, which Rajputana specializes in.
Final Words
Rajputana Stainless has refiled its DRHP not merely to raise capital, but as part of a broader strategy aimed at strengthening its balance sheet and scaling operations in high-growth segments such as stainless-steel seamless pipes. Backed by an integrated manufacturing infrastructure, robust financial performance, and strong industry tailwinds, the company is strategically positioned to capitalize on India’s accelerating infrastructure and manufacturing-led growth.
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