PS Raj Steels IPO is a book-built issue valued at ₹28.28 crore. It is a 100% fresh issue of 20.20 lakh shares. The IPO opens for subscription on February 12, 2025, and closes on February 14, 2025. The allotment is expected to be finalised on February 17, 2025, with a tentative listing date of February 19, 2025, on NSE SME.
The IPO price is set at a price band of ₹132 - ₹140 per share. Retail investors need a minimum investment of ₹1,40,000 for one lot of 1000 shares, while HNI investors must invest in at least two lots, amounting to ₹2,80,000.
Khambatta Securities Limited is the book-running lead manager for this issue, while Bigshare Services Private Limited serves as the registrar.
For detailed financial and operational information, investors can refer to the PS Raj Steels IPO RHP. This IPO presents an opportunity to invest in a growing enterprise listed on the SME platform.
Industry Outlook
- The Indian steel industry is experiencing strong growth, driven by infrastructure development, urbanisation, and increasing demand from the construction and manufacturing sectors. Government initiatives such as Make in India and the National Infrastructure Pipeline are further boosting the sector.
- The demand for steel products, especially in construction, automotive, and industrial applications, is rising due to large-scale investments in transportation, smart cities, and renewable energy projects. Companies focusing on advanced production technologies and sustainability are expected to benefit from this trend.
PS Raj Steels IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
- The company intends to utilise the net proceeds from the IPO to expand its manufacturing capacity, ensuring it meets the rising demand for steel products.
- A portion of the funds will be used to modernise existing facilities and adopt advanced technology to enhance operational efficiency.
- The company plans to utilise part of the proceeds for working capital requirements, ensuring smooth day-to-day operations and improving financial stability.
- Funds will be allocated for debt repayment, reducing financial liabilities and strengthening the company’s balance sheet.
About PS Raj Steels Limited
PS Raj Steels Limited was originally incorporated as PS Raj Steels Private Limited and was later converted into a public limited company on September 23, 2024. The company is headquartered in Hisar, Haryana and is engaged in the manufacturing and processing of steel products, catering to industries such as construction, infrastructure, and engineering.
PS Raj Steels specialises in producing high-quality steel products, serving a diverse range of industrial applications. With a strong focus on modernisation and operational efficiency, the company has established advanced manufacturing facilities equipped with the latest technology.
Operating on a B2B model, the company supplies steel products to domestic and international clients, ensuring consistent quality and competitive pricing. PS Raj Steels adheres to stringent quality control measures and follows industry regulations to maintain product reliability and customer trust.
The company has leveraged government initiatives supporting infrastructure development, which has contributed to its business growth and expansion. Through its IPO, PS Raj Steels aims to strengthen its financial position, expand production capacity, and invest in technology to drive long-term business growth.
How To Check the Allotment Status of the PS Raj Steels IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for PS Raj Steels IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the PS Raj Steels IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of PS Raj Steels IPO
Registered office: V & P.O Talwandi Rukka, Hisar-125001, Haryana, India
Phone: +91 9812700024
E-mail: cs@psrajsteels.com
PS Raj Steels IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares Offered |
Not more than 50% of the Net Issue |
|
Retail Shares Offered |
Not less than 35% of the Net Issue |
|
NII (HNI) Shares Offered |
Not less than 15% of the Net Issue |
PS Raj Steels IPO Anchor Investors Details
|
Bid Date |
February 11, 2025 |
|
Shares Offered |
5,69,000 |
|
Anchor Portion Size (In Cr.) |
7.97 |
|
Anchor lock-in period end date for 50% shares (30 Days) |
March 16, 2025 |
|
Anchor lock-in period end date for remaining shares (90 Days) |
May 15, 2025 |
PS Raj Steels IPO Promoter Holding
The promoters of the company are Mr Raj Kumar Gupta, Mr Deepak Kumar, Mr Gaurav Gupta, Mr Vishal Gupta, Ms Nikita Gupta, M/s Raj Kumar HUF, M/s Deepak Kumar HUF and M/s Gaurav Gupta HUF.
|
Share Holding Pre-Issue |
100.00% |
|
Share Holding Post Issue |
- |
Key Performance Indicators for PS Raj Steels IPO
As of March 31, 2024, the market capitalisation of PS Raj Steels's IPO is ₹230.92 crore. Here are the KPIs of PS Raj Steels:
|
KPI |
Value |
|
RoE (%) |
20.79 |
|
RoCE (%) |
20.64 |
|
EBITDA Margin (%) |
3.63 |
|
PAT Margin (%) |
2.14 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
11.53 |
10.26 |
|
P/E (x) |
12.14 |
13.65 |
Note: The Pre IPO EPS is calculated based on pre-issue shareholding as of the date of RHP and the latest FY earnings as of March 31, 2024, that is available in RHP.
The post-issue EPS is calculated based on the post-issue shareholding and annualized FY earnings of September 30, 2024, that are available in RHP.
PS Raj Steels IPO Prospectus
PS Raj Steels IPO Registrar and Lead Managers
PS Raj Steels IPO Lead Managers
- Khambatta Securities Limited
Registrar for PS Raj Steels IPO
Bigshare Services Private Limited
- Contact Number: +91 22 6263 8200
- Email Address: ipo@bigshareonline.com
PS Raj Steels IPO Registrar
Financial Performance of PS Raj Steels Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from operations (in ₹ lakh) | 29,774.93 | 22,542.65 |
| EBITDA Margin (%) | 3.63 | 3.08 |
| PAT Margin (%) | 2.14 | 1.62 |
| ROCE (%) | 20.64 | 14.56 |
| ROE (%) | 20.79 | 15.03 |
| Debt Equity Ratio (x) | 0.58 | 0.74 |
| Net Debt (in ₹ lakh) | 1,775.37 | 1,798.61 |
Know before investing
Strengths
5PS Raj Steels Limited is a leading manufacturer of steel products, catering to industries such as construction, infrastructure, and engineering.
The company has an advanced manufacturing facility equipped with state-of-the-art technology, ensuring high production efficiency and product quality.
With a well-established B2B model, PS Raj Steels supplies its products to a diverse customer base, including contractors, infrastructure developers, and government projects.
The company benefits from strong demand in the steel sector, driven by government initiatives such as Make in India and the National Infrastructure Pipeline.
Increasing urbanisation and investment in real estate and infrastructure projects provide growth opportunities for the company.
Risks
5The company operates in a highly competitive steel manufacturing industry, where pricing pressure and demand fluctuations can impact profitability.
Dependence on raw material availability and price volatility, especially for iron ore and coal, may increase production costs and affect margins.
Regulatory changes and compliance requirements related to environmental standards and safety norms may lead to additional operational costs.
Economic slowdowns or fluctuations in infrastructure and construction projects could affect demand for steel products.
Supply chain disruptions, including logistics challenges and transportation delays, may impact production efficiency and order fulfilment.
PS Raj Steels Limited Peer Details Comparison
| Company Name | EBDITA (in ₹ lakh) | PAT (in ₹ lakh) | Return on Capital Employed (%) | Return on Equity (%) |
|---|---|---|---|---|
| PS Raj Steels Limited | 1,080.10 | 636.29 | 20.64 | 20.79 |
| Remi Edelstahl Tubular Limited | 704.9 | 138.91 | 4.78 | 3.20 |
| Venus Pipes & Tubes Limited | 14,949.40 | 8,597.90 | 24.80 | 21.17 |
| Suraj Limited | 4,378.73 | 2,184.87 | 22.04 | 17.84 |
