Rajputana Stainless IPO Review: Check GMP, Valuation, Strengths & Risks

Rajputana Stainless IPO Review: Check GMP, Valuation, Strengths & Risks

Rajputana Stainless Limited is a stainless-steel maker that supplies bars, billets, flats, and other steel inputs to industries like forging, auto parts, pipes, and utensils. Its IPO opens on 9 March 2026 and closes on 11 March 2026 at a price band of ₹116 to ₹122 per share, with a tentative listing on 16 March 2026. GMP, or grey market premium, is at just ₹2, but this is only an unofficial and unregulated signal, so it should never be the main reason to invest.

In this article, we will break down what the company does, where the IPO money will go, what looks strong, what can go wrong, how it compares with peers, and whether the valuation looks fair for a steel business.

IPO Overview

• IPO Date: 9 to 11 Mar, 2026
• Total Issue Size: ₹254.98 crore
• Price Band: ₹116 to ₹122 per share
• Minimum Investment: ₹13,420
• Lot Size: 110 Shares
• Tentative Allotment Date: Mar 12, 2026
• Listing Date: Mar 16, 2026 (Tentative)
• GMP: The GMP for the Rajputana Stainless IPO is ₹2, reflecting a 1.64% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How Rajputana Stainless Makes Money

• Rajputana follows a B2B model, which means it sells to other businesses, not to people in shops. Its customers are manufacturers and traders who use this steel to make products like pipes, tools, kitchen items, and engineering parts.​
• The company makes long and flat stainless-steel products such as billets, forging ingots, black bars, bright bars, flats, and pattis. A billet is just a raw steel block, while rolled products are steel pieces shaped into usable forms.
• It runs an integrated setup under one roof. That means melting, refining, casting, rolling, and finishing happen in the same facility, which usually helps save time, reduce handling, and control product quality better.
• It also does job work, which means other companies can send scrap or raw material and Rajputana processes it for a fee. This gives it one more income stream beyond selling its own finished steel.

Objectives of the IPO

The company is raising ₹254.98 crore via the IPO, including a fresh issue of up to ₹178.73 crore and an offer for sale (OFS) of up to ₹76.25 crore. The funds from the fresh issue will be used for the following objectives:

• Around ₹18.57 crore from the fresh issue is meant for a new seamless stainless-steel pipe facility at the existing Gujarat plant. Seamless pipes have no welded joint, so they are usually stronger and more reliable for tougher industrial use. This new unit will have a capacity of 9,600 metric tonnes per year, and the useful part is that Rajputana can feed it with steel bars it already makes. That is a kind of backward-forward linkage, meaning its present products support its next product line.
• About ₹98 crore will go toward repaying borrowings. This matters because debt was around ₹141.36 crore as of December 2025, and lower debt can reduce interest cost and improve balance-sheet strength.

Strengths:

• Profit growth has been stronger than revenue growth: Net profit rose from ₹24.04 crore in FY23 to ₹39.85 crore in FY25, while EBITDA margin improved from 4.63% to 7.92% and net profit margin from 2.54% to 4.28%, which means the company is keeping more profit out of every ₹100 of sales.
• Customer stickiness looks good: In FY25, repeat customers made up 63.78% of the customer base and contributed ₹868.44 crore, or 93.19% of revenue, which suggests buyers come back instead of treating Rajputana like a one-time supplier.
• Capital use looks efficient: ROCE rose from 25.72% in FY23 to 31.72% in FY25, which means the business generated about ₹31.72 of operating profit for every ₹100 of capital used. Debt-to-equity also improved from 0.98 to 0.66 before the IPO debt repayment benefit.

Risks:

• The biggest risk is that steel is a cyclical business: Prices and demand can swing up and down with the economy. The company already saw revenue dip from ₹950.7 crore in FY23 to ₹915.5 crore in FY24 before recovering, which shows this volatility is real.
• Risk from unresolved claims is meaningful: Contingent liabilities stood at ₹120.82 crore as of September 2025, equal to 68.40% of net worth, which means if some claims go against the company, the financial hit could be serious.
• ​Revenue and supply concentration: About 90.65% of domestic revenue came from three states, top 10 customers contributed 41.69% of revenue without long-term contracts, and top 10 suppliers made up 32.17% of raw-material purchases.

For detailed information, visit Rajputana Stainless’s official IPO page at INDmoney.

Peer Comparison

Source: RHP, internal calculation

• Operating Revenue: With a revenue of ₹932.16 crore, it ranks as the second smallest in the group, staying ahead of only Panchmahal Steel (₹383.10 crore) while larger peers like Mukand lead with a massive ₹4,889.99 crore.
• EBITDA Margin: Its operating margin of 7.92% sits comfortably in the middle of the pack, outperforming Mangalam (5.60%) and Panchmahal (4.70%) but trailing the double-digit margins of Mukand (18.30%) and Electrotherm (12.10%).
• P/E Ratio: Priced at a P/E ratio of 20.88x, it offers the second cheapest valuation among its peers, slightly more attractive than Mangalam (22.57x) and significantly cheaper than Mukand (26.34x) and Panchmahal (182.18x).
• ROCE: It generates a strong 31.72% return on capital employed, performing better than Mangalam (19.66%) and Panchmahal (6.33%), while trailing Mukand (36.27%) and Electrotherm's exceptionally high 234.10%.

IPO Valuation

At the upper price band of ₹122, Rajputana is valued at about 20.88 times earnings, or roughly 21x P/E. A P/E of 21 means investors are paying about ₹21 for every ₹1 of annual earnings the company made. On peer numbers available in the RHP, this is below the peer average, though peer comparisons in metals can be noisy because commodity companies often have uneven profits across cycles.

The post-IPO price-to-sales ratio is about 1.09x, which means investors are paying just over ₹1 for every ₹1 of annual sales. That does not look extreme on the surface, but steel is still a commodity business, so markets usually avoid giving very rich valuations unless growth, margin stability, and balance-sheet quality are clearly superior. That is why the valuation debate exists here: the company has improving margins and a debt-reduction plan, but it also operates in a fragmented and cyclical segment.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and annualized H1 FY26 net profits at the upper end of the price band.

Who’s Making Money from the IPO?

The Offer for Sale is entirely from one shareholder, Shankarlal Deepchand Mehta, who is a promoter and the Managing Director. He is offering up to 62.5 lakh shares in the OFS. At the upper band of ₹122, that works out to about ₹76.25 crore of secondary sale proceeds.

The RHP shows his weighted average cost of acquisition at ₹0.91 per share. Based on that disclosed cost, the paper gain of 134.1x versus the IPO upper price is very large, but for a promoter who has been involved for decades, this number should not be read like a short-term market return. In simple words, this is more the result of years of business building than a quick investment win.

Analyst View

Rajputana Stainless has a clear and sensible IPO use of funds. It is not only raising money to grow through a new seamless pipe unit, but also to reduce debt, and that combination usually makes more sense than raising money only to cover routine business needs. The company also has improving margins, healthy return ratios, strong customer repeat business, and a product range that covers more than 80 grades.

Still, this is not a no-risk story. Sales have been uneven, the industry is fragmented and cyclical, unresolved claims are large, and the company depends meaningfully on a limited set of states, customers, suppliers, and imported inputs. Also, even though the headline P/E is not wildly high against some peers, commodity manufacturers do not always deserve premium multiples unless performance remains steady across good and bad cycles.

In short: this looks more like a medium-to long-term operating story than a quick listing-pop story. Investors who understand steel cycles, margin risk, and working-capital-heavy businesses may find the debt reduction plus capacity expansion story interesting, but the valuation and business risks deserve a calm look before applying.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Rajputana Stainless's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.