IPO will list on 16 Mar'26
Rajputana Stainless Ltd
Minimum Investment
₹ 13,420 / 110 shares
Our Verdict:
Avoid
- Although the bottom line has shown strong growth, Rajputana Stainless Ltd (RSL) has reported largely flat revenue growth in recent periods.
- From a valuation standpoint, the IPO is priced at a discount to industry average, making the valuation appear reasonable.
- The company plans to utilise a portion of the IPO proceeds to repay borrowings, which is expected to reduce debt and strengthen the balance sheet.
- However, there are several concerns investors should consider. Contingent liabilities remain high at approximately 68% of net worth. In addition, the business faces geographic and client concentration risks.
- The company operates in a highly competitive and fragmented stainless steel products industry, which could pressure margins and limit market share expansion.
- Considering these factors, along with the current broader market environment, the risk-reward balance does not appear favourable at this stage. It may therefore be prudent to avoid the IPO and reassess the stock once geopolitical uncertainties stabilise.
About the company
Founded in
2 Apr'91
Managing director
Shankarlal Mehta
- The company primarily manufactures long and flat stainless steel products and markets them under the brand name “RSL”. Its product portfolio includes billets, forging ingots, rolled black bars, rolled bright bars, flat patti, wire rods and other ancillary products.
- The company offers a wide range of products across more than 80 different grades of stainless steel, catering to diverse industrial applications.
STRENGTHS
- Impressive Growth: RSL has demonstrated strong growth in profitability between FY23 and FY25, with EBITDA growing at a CAGR of 30% and net profit at a CAGR of 29%. However, revenue in FY25 remains lower compared to FY23.
- Improving Margins: Operating margins have steadily improved over the period. EBITDA margin increased from 4.63% in FY23 to 7.92% in FY25 and further to 9.16% in H1FY26. Similarly, net profit margin expanded from 2.54% in FY23 to 4.87% in H1FY26.
- Strong Return Ratios: RSL boasts robust return metrics, with Return on Equity at 30.17% (the highest among its listed peers) and Return on Capital Employed at 31.72% as of FY25.
- Established Customer Relationships: The company benefits from long-standing relationships with its clients. As of H1FY26, around 73% of customers were repeat clients, contributing ~89% of total revenue.
RISK FACTORS
- Client Concentration: RSL is significantly dependent on a limited set of customers. In H1FY26, the top 10 customers contributed ~45% of operating revenue, while the top 5 customers accounted for 32%. The loss of any key customer could materially impact revenue, cash flows and overall operations.
- Geographic Concentration: A large portion of RSL’s revenue (around 83%) is derived from Maharashtra and Gujarat. Any adverse developments or economic slowdown in these regions could negatively affect the business.
- Legal Risks: RSL, along with its promoters, directors and key managerial personnel, is involved in certain legal proceedings. Litigations involving the company amount to Rs 128.61 crore, representing 72.81% of its net worth. Any adverse outcome could materially impact the company’s business, financial condition and operations.
- Manufacturing Concentration: The company’s existing manufacturing facility and the proposed facility are both located in Gujarat. As a result, operations are highly exposed to regional disruptions, policy changes or economic downturns in the region.
- High Contingent Liabilities: Contingent liabilities stand at Rs 120.82 crore, representing about 68.40% of the company’s net worth. If these liabilities materialise, they could adversely affect the company’s financial position.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 255 crore
Fresh Issue
₹ 179 crore
OFS
₹ 76 crore
Price range
₹ 116 - 122
Lot size
110 shares
Issue Objective
The net proceeds from the fresh issue will be utilised for the following purposes:
- Setting up a new manufacturing facility for stainless steel seamless pipes to expand its product portfolio;
- Full or partial repayment of certain outstanding secured borrowings of the company; and
- Meeting general corporate purposes.
Dates
Bidding open
9 Mar'26
Bidding close
11 Mar'26
Allotment date
12 Mar'26
Refund date
13 Mar'26
Listing
16 Mar'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.