IPO Note : Rajputana Stainless Limited - GEPL Capital
Company Profile
Rajputana Stainless Limited is engaged in the manufacturing of long and flat stainlesssteel products, offering a diversified portfolio of over 80 grades including billets, forging ingots, rolled black bars, bright bars, flats, pattis, and other ancillary stainless-steel products. The company supplies high-quality stainless-steel raw materials to a wide range of industries such as seamless pipes, aerospace, oil & gas, forging, defense, automotive, aviation, and precision engineering. Its products are primarily sold in the domestic market through a network of direct customers and traders, while it also exports to countries including the UAE, USA, Turkey, Kuwait, and Poland. Rajputana Stainless operates an integrated manufacturing facility spread across 35,196.98 sq. m in Kalol, Gujarat, equipped with advanced infrastructure such as an induction furnace, Argon Oxygen Decarburization (AOD) unit, Continuous Casting Machine (CCM), heat treatment facilities, rolling mill, and bright bar shop to ensure efficient and high-quality production. The company manufactures stainless-steel billets used as key semi-finished inputs for hot working processes like forging and rolling, cast ingots used for open die forging, re-rolling and ring rolling, and hexagonal bars used in the production of nuts, valves, fasteners, hose ends and hex bolts. As of September 30, 2025, the company had a workforce of 408 permanent employees comprising both skilled and unskilled workers supporting its manufacturing operations
GEPL’s Insights & Investment Thesis:
* Rajputana Stainless Ltd manufactures long and flat stainless steel products with a diversified portfolio of over 80 grades. The company operates a fully integrated manufacturing facility spread across 35,197 sq.m in Gujarat.
* The company will deploying IPO proceeds towards repayment of borrowings, reducing its finance costs and improving profitability. Further the company is planning forward integration into stainless-steel seamless pipes to enhance product diversification.
* Based on the FY25 earnings, relative to the company's paid-up capital, the issue is priced at a P/E ratio of 21x. We believe that the issue is fairly valued compared to its peers, healthy financial performance, planned forward integration, and reduction of debt levels. Therefore, we recommend a “Subscribe” rating for the issue.
Business Highlights & Services
The company operates a fully integrated manufacturing facility spread across 35,196.98 sq. m in Kalol, Gujarat, covering the entire production chain from melting, refining and casting to rolling, treatment, testing and storage. The facility is equipped with key infrastructure such as an induction furnace, AOD, CCM, rolling mill, heat treatment units and bright bar shop, along with in-house oxygen and nitrogen plants that reduce dependence on third-party suppliers and improve operational efficiency. The integrated setup enables flexible production, allowing the company to convert billets into long and flat stainless-steel products or sell billets independently based on market demand. The company plans to utilize vacant land within its existing facility to set up a plant for manufacturing stainless-steel seamless pipes, enabling forward integration and product diversification. Stainless-steel seamless pipes are widely used across industries such as oil & gas, chemical and petrochemical, power generation, food & beverage, automotive, and construction. Domestic demand has increased significantly from 80,626 MT in FY12 to 214,654 MT in FY24, supported by government initiatives like ‘Make in India’, PLI schemes for specialty steel and infrastructure development
SEBI Registration number is INH000000081.
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