PS Raj Steels IPO: issue dates, price, and lot size

Stainless steel pipes manufacturer PS Raj Steels Limited is set to make its market debut with an initial public offering (IPO), valued at ₹28.28 crores, an entirely fresh issue of 20.20 lakh shares. The subscription window opens on February 12, 2025 and draws to a close on February 14, 2025 Investors can track this company’s market journey as it prepares for its listing on the NSE SME platform, scheduled for Wednesday, February 19, 2025.

PS Raj Steels Limited presents a public offering, with equity shares of ₹10 face value being offered within a price band of ₹132 to ₹140 per share and a lot size of 1,000 shares. Interested retail investors can participate with a minimum investment of ₹1,40,000 to buy 1 lot, while High Net-worth Individuals (HNI) are invited to participate with a minimum subscription of ₹2,80,000 (2 lots). The company has planned a swift post-subscription timeline, with share allotment notifications slated for February 17, 2025, followed by its debut on the NSE SME platform on February 19, 2025. As this steel  embarks on its public market journey, investors stand at the cusp of an emerging opportunity in India's steel sector.

PS Raj Steels IPO details

PS Raj Steels Limited IPO is a fundraise worth ₹28.28 crores comprising purely of a fresh issue with 1,01,000 shares reserved for the market maker Nikunj Stock Brokers Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from February 12, 2025, 2025, to February 14, 2025, providing an opportunity for investors looking to gain a stake in the steel sector.

PS Raj Steels IPO timeline

The PS Raj Steels Limited IPO opens for subscription on February 12, 2025, and closes on February 14, 2025, with allotment scheduled for February 19, 2025.

PS Raj Steels IPO review

Established in November 2004, PS Raj Steels Limited specializes in manufacturing and supplying stainless steel pipes and tubes across India. Its diverse product range includes Outer Diameter (OD) pipes (½ inch to 18 inches), Nominal Bore (NB) pipes (3/8 inch to 18 inches), section pipes in square, rectangular, and oval shapes, as well as slotted pipes. These products cater to various industries such as railways, furniture, households, gate railings, door frames, rice plants, sugar mills, food processing, and heat exchangers. The company's manufacturing facility, located in Hissar, Haryana, spans 3 acres and is equipped to support efficient production.

PS Raj Steels has established a robust distribution network across 18 Indian states, working directly with OEMs to ensure timely deliveries and customized solutions. The company operates through a strong network of 77 dealers, enhancing its market reach. As of January 31, 2025, it employs 114 personnel, including non-contract labor, reinforcing its operational capabilities and commitment to quality manufacturing.

PS Raj Steels IPO financials

The PS Raj Steels Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 20.79%, Return on Capital Employed (ROCE) at 20.64% and a Debt-to-Equity ratio of 0.58. The Return on Net-Worth (RoNW) stands at 20.79%, and the PAT Margin was 2.14%. The Price to Book Value was XX. The company’s market capitalisation is ₹2.52 crore.

Amount in ₹ crores / lakhs

The pre-IPO EPS is at ₹11.53  while the post-IPO EPS will be ₹10.26. Similarly, the pre-IPO Price to Earnings ratio is 12.14 and will become 13.65 post-IPO.

PS Raj Steels IPO strengths

PS Raj Steels Limited stands as a key player in the steel manufacturing industry, supplying high-quality products to sectors like construction, infrastructure, and engineering. The company operates an advanced manufacturing facility with state-of-the-art technology, ensuring efficiency and superior product standards. With a well-established B2B model, it caters to a diverse clientele, including contractors, government projects, and infrastructure developers. A strong distribution network across 18 states, a cost-effective supply chain, and a dedicated leadership team further strengthen its market position. Additionally, its long-term association with Jindal Stainless Limited ensures a steady supply of raw materials, enhancing operational stability.

The company benefits from the growing demand for steel, fueled by urbanization, real estate investments, and government initiatives like Make in India and the National Infrastructure Pipeline. Its ability to scout and capitalize on new opportunities, a consistent track record of financial performance, and a reputation as a reliable supplier of stainless steel pipes and tubes make it a recognized industry name. By engaging directly with OEMs and offering diverse product solutions, PS Raj Steels positions itself for sustained growth in a competitive market.

PS Raj Steels IPO weaknesses

However, the company faces challenges, including revenue fluctuations due to its dependency on group entities like Steelmint Industries Private Limited and a concentrated customer base. The absence of long-term agreements with both key suppliers and clients adds uncertainty to its business operations. Additionally, reliance on Jindal Stainless Limited for 95% of its raw material exposes it to supply disruptions, price volatility, and potential operational setbacks. The high competition in the steel industry, coupled with exposure to raw material price fluctuations, can impact profitability.

Moreover, external factors such as regulatory compliance costs, environmental norms, and economic slowdowns in infrastructure and real estate sectors could affect demand for its products. The company's operations are also vulnerable to supply chain disruptions, market volatility, and legal proceedings involving its promoters and group entities. Addressing these risks while leveraging its strengths will be crucial for PS Raj Steels to sustain growth and maintain a competitive edge.

Should you invest in the PS Raj Steels IPO?

Investing early in PS Raj Steels Limited's public offering provides an opportunity to be part of the company's growth in the steel sector. However, potential investors should thoroughly evaluate factors such as its operational performance, financial stability, industry trends, and expansion strategy. It is essential to align the investment with personal financial goals and risk tolerance. Reviewing the offer document and seeking professional guidance can help in making a well-informed decision regarding participation in this IPO.

FAQs

What is the PS Raj Steels Limited IPO?

The PS Raj Steels Limited IPO is an NSE SME offering consisting of fresh issue of 20,20,000 equity shares with a face value of ₹10, aiming to raise ₹28.28 crores. The price band has been set between ₹132 to ₹140 per share, with a minimum order quantity of 1,000 shares. This IPO will be open for subscription from February 12, 2025, to February 14, 2025. Khambatta Securities Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar while Nikunj Stock Brokers Limited is the market maker.

When will the PS Raj Steels IPO open?

The PS Raj Steels Limited IPO will open for subscription on February 12, 2025, and will close on February 14, 2025.

When is the PS Raj Steels IPO listing date?

The tentative listing date for the PS Raj Steels Limited IPO is Wed, February 19, 2025.